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98 GE 2009 ANNUAL REPORT
    
Note 20.
Earnings Per Share Information
2009 2008 2007
(In millions; per-share amounts in dollars) Diluted Basic Diluted Basic Diluted Basic
AMOUNTS ATTRIBUTABLE TO THE COMPANY:
CONSOLIDATED
Earnings from continuing operations for per-share calculation (a) $11,188 $11,187 $18,091 $18,089 $22,457 $22,457
Preferred stock dividends declared (300) (300) (75) (75) — —
Earnings from continuing operations attributable to common
shareowners for per-share calculation $10,888 $10,887 $18,016 $18,014 $22,457 $22,457
Loss from discontinued operations for per-share calculation (193) (193) (679) (679) (249) (249)
Net earnings attributable to common shareowners for per-share calculation 10,695 10,694 17,336 17,335 22,208 22,208
AVERAGE EQUIVALENT SHARES
Shares of GE common stock outstanding 10,614 10,614 10,080 10,080 10,182 10,182
Employee compensation-related shares, including stock options 1 — 18 — 36 —
Total average equivalent shares 10,615 10,614 10,098 10,080 10,218 10,182
PER-SHARE AMOUNTS
Earnings from continuing operations $ 1.03 $ 1.03 $ 1.78 $ 1.79 $ 2.20 $ 2.21
Loss from discontinued operations (0.02) (0.02) (0.07) (0.07) (0.02) (0.02)
Net earnings 1.01 1.01 1.72 1.72 2.17 2.18
Effective January 1, 2009, our unvested restricted stock unit awards that contain non-forfeitable rights to dividends or dividend equivalents are considered participating securities
and, therefore, are included in the computation of earnings per share pursuant to the two-class method. Application of this treatment had an insignificant effect.
(a) Included an insignificant amount of dividend equivalents in each of the three years presented and an insignificant amount related to accretion of redeemable securities in 2009.
For the years ended December 31, 2009, 2008 and 2007, there
were approximately 328 million, 204 million and 77 million,
respectively, of outstanding stock awards that were not included
in the computation of diluted earnings per share because their
effect was antidilutive.
Earnings-per-share amounts are computed independently for
earnings from continuing operations, loss from discontinued
operations and net earnings. As a result, the sum of per-share
amounts from continuing operations and discontinued operations
may not equal the total per-share amounts for net earnings.
Note 21.
Fair Value Measurements
We adopted ASC 820 in two steps; effective January 1, 2008,
we adopted it for all financial instruments and non-financial
instruments accounted for at fair value on a recurring basis and
effective January 1, 2009, for all non-financial instruments
accounted for at fair value on a non-recurring basis. This guidance
establishes a new framework for measuring fair value and expands
related disclosures. Broadly, the framework requires fair value
to be determined based on the exchange price that would be
received for an asset or paid to transfer a liability (an exit price)
in the principal or most advantageous market for the asset or
liability in an orderly transaction between market participants.
It also establishes a three-level valuation hierarchy based upon
observable and non-observable inputs.