MICROSOFT CORP | 2013 | FY | 3


NOTE 2 — EARNINGS PER SHARE

Basic earnings per share (“EPS”) is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted EPS is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options, stock awards, and shared performance stock awards.

The components of basic and diluted EPS are as follows:

 

(In millions, except earnings per share)                   


Year Ended June 30,    2013     2012     2011  

Net income available for common shareholders (A)

   $   21,863      $   16,978      $   23,150   

Weighted average outstanding shares of common stock (B)

     8,375        8,396        8,490   

Dilutive effect of stock-based awards

     95        110        103   


 


 


Common stock and common stock equivalents (C)

     8,470        8,506        8,593   
    


 


 


Earnings Per Share                   

Basic (A/B)

   $ 2.61      $ 2.02      $ 2.73   

Diluted (A/C)

   $ 2.58      $ 2.00      $ 2.69   


Anti-dilutive stock-based awards excluded from the calculations of diluted EPS were immaterial during the periods presented.


us-gaap:EarningsPerShareTextBlock