Oracle 2009 Annual Report Download - page 217

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EARNINGS PER SHARE
EARNINGS PER SHARE
(USD $)
12 Months Ended
05/31/2010
EARNINGS PER SHARE 17. EARNINGS PER SHARE
Basic earnings per share is computed by dividing net income for the period by the weighted average number of common shares
outstanding during the period. Diluted earnings per share is computed by dividing net income for the period by the weighted
average number of common shares outstanding during the period, plus the dilutive effect of outstanding stock options and restricted
stock-based awards and shares issuable under the employee stock purchase plan using the treasury stock method. The following
table sets forth the computation of basic and diluted earnings per share:
Year Ended May 31,
(in millions, except per share data) 2010 2009 2008
Net income $ 6,135 $ 5,593 $ 5,521
Weighted average common shares outstanding 5,014 5,070 5,133
Dilutive effect of employee stock plans 59 60 96
Diluted weighted average common shares outstanding 5,073 5,130 5,229
Basic earnings per share $ 1.22 $ 1.10 $ 1.08
Diluted earnings per share $ 1.21 $ 1.09 $ 1.06
Shares subject to anti-dilutive stock options and restricted stock-based awards excluded
from calculation(1) 141 173 98
(1) These weighted shares relate to anti-dilutive stock options and restricted stock-based awards as calculated using the treasury stock method (described
above) and could be dilutive in the future. See Note 14 for information regarding the exercise prices of our outstanding, unexercised options.
Source: ORACLE CORP, 10-K, July 01, 2010 Powered by Morningstar® Document Research