6. Earnings per Share

Basic earnings per share (EPS) is calculated as net earnings divided by the weighted average number of common shares outstanding during the period. Diluted EPS includes the potentially dilutive impact of share-based awards outstanding at period end, consisting of the incremental shares assumed to be issued upon the exercise of stock options and the incremental shares assumed to be issued under performance share and restricted stock unit arrangements.

Earnings Per Share (millions, except per share data)	2012		2011		2010



Net earnings	$	2,999	$	2,929	$	2,920

Basic weighted average common shares outstanding		656.7		679.1		723.6
Dilutive impact of share-based awards (a)		6.6		4.8		5.8

Dilutive weighted average common shares outstanding		663.3		683.9		729.4

Basic earnings per share	$	4.57	$	4.31	$	4.03
Dilutive earnings per share	$	4.52	$	4.28	$	4.00

(a): Excludes 5.0 million, 15.5 million and 10.9 million share-based awards for 2012, 2011 and 2010, respectively, because their effects were antidilutive.