Notes to Consolidated Financial Statements


NOTE KEARNINGS PER SHARE

Basic earnings per share is based on the weighted average number of shares outstanding during each period. Diluted earnings per share further assumes that the zero coupon, convertible subordinated notes, if outstanding and dilutive, are converted as of the beginning of the period and that, under the treasury stock method, dilutive stock options are exercised. Net earnings under this assumption have been adjusted for interest on the zero coupon, convertible subordinated notes when outstanding, net of the related income tax effect.

The information required to compute basic and diluted net earnings per share is as follows:

(In thousands) 2002 2001 2000
Basic:
    Weighted average number of
        common shares outstanding   306,778     298,054     309,301  
Diluted:
    Net earnings   $ 310,708     $ 201,043     $ 49,332  
    Interest expense related to
        convertible notes, net of tax   4,795     7,238     -  
    Adjusted net earnings $ 315,503   $ 208,281   $ 49,332  
    Weighted average number of
        common shares outstanding   306,778     298,054     309,301  
    Shares issued upon assumed
        conversion of convertible notes   9,033     13,846     -  
    Shares issued upon assumed
        exercise of stock options   6,389     4,524     1,930  
    Shares used in computing diluted
        net earnings per common share   322,200     316,424     311,231  

For 2000, the zero coupon convertible subordinated notes would have been anti-dilutive, and therefore the shares (23.0 million) and related interest expense ($12.1 million) were excluded from our calculation of diluted earnings per share. Options to purchase 17.5 million shares of common stock were not included in our computation of diluted earnings per share for 2002 because their effect would have been anti-dilutive.