Boeing 2014 Annual Report Download - page 78

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66
Note 3 – Earnings Per Share
Basic and diluted earnings per share are computed using the two-class method, which is an earnings
allocation method that determines earnings per share for common shares and participating securities. The
undistributed earnings are allocated between common shares and participating securities as if all earnings
had been distributed during the period. Participating securities and common shares have equal rights to
undistributed earnings.
Basic earnings per share is calculated by taking net earnings, less earnings available to participating
securities, divided by the basic weighted average common shares outstanding.
Diluted earnings per share is calculated by taking net earnings, less earnings available to participating
securities, divided by the diluted weighted average common shares outstanding.
The elements used in the computation of basic and diluted earnings per share were as follows:
(In millions - except per share amounts)
Years ended December 31, 2014 2013 2012
Net earnings $5,446 $4,585 $3,900
Less: earnings available to participating securities 678
Net earnings available to common shareholders $5,440 $4,578 $3,892
Basic
Basic weighted average shares outstanding 728.9 760.8 758.0
Less: participating securities 1.3 1.9 2.3
Basic weighted average common shares outstanding 727.6 758.9 755.7
Diluted
Basic weighted average shares outstanding 728.9 760.8 758.0
Dilutive potential common shares(1) 9.1 8.7 5.8
Diluted weighted average shares outstanding 738.0 769.5 763.8
Less: participating securities 1.3 1.9 2.3
Diluted weighted average common shares outstanding 736.7 767.6 761.5
Net earnings per share:
Basic $7.47 $6.03 $5.15
Diluted 7.38 5.96 5.11
(1) Diluted earnings per share includes any dilutive impact of stock options, restricted stock units,
performance-based restricted stock units and performance awards.