M. Earnings per Share (“EPS”).  The Company computes EPS in accordance with ASC 260. The calculations of basic and diluted EPS are as follows: Options to purchase 0.7 million, 0.9 million, and 1.0 million shares of common stock for fiscal 2019, 2018, and 2017, respectively, were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. N. Stock-Based Compensation.  The Company recognizes stock-based compensation expense in net earnings based on the fair value of the award on the date of the grant, and in the case of international units settled in cash, adjusts this fair value based on changes in the Company's stock price during the vesting period. The Company determines the fair value of stock options issued using a binomial option-pricing model. The binomial option-pricing model considers a range of assumptions related to volatility, dividend yield, risk-free interest rate, and employee exercise behavior. Expected volatilities utilized in the binomial option-pricing model are based on a combination of implied market volatilities, historical volatility of the Company's stock price, and other factors. Similarly, the dividend yield is based on historical experience and expected future changes. The risk-free rate is derived from the U.S. Treasury yield curve in effect at the time of grant. The binomial option-pricing model also incorporates exercise and forfeiture assumptions based on an analysis of historical data. The expected life of a stock option grant is derived from the output of the binomial model and represents the period of time that options granted are expected to be outstanding. Restricted stock units and restricted stock awards are valued based on the closing price of the Company's common stock on the date of the grant and, in the case of performance based restricted stock units and restricted stock, are adjusted for changes to probabilities of achieving performance targets. International restricted stock units are settled in cash and are marked-to-market based on changes in the Company's stock price. See Note 12 for additional information on the Company's stock-based compensation programs. O. Internal Use Software.  Expenditures for major software purchases and software developed or obtained for internal use are capitalized and amortized generally over a three to five-year period on a straight-line basis. The Company begins to capitalize costs incurred for computer software developed for internal use when the preliminary development efforts are successfully completed, management has authorized and committed to funding the project, and it is probable that the project will be completed and the software will be used as intended. Capitalization ceases when a computer software project is substantially complete and ready for its intended use. The Company's policy provides for the capitalization of external direct costs of materials and services associated with developing or obtaining internal use computer software. In addition, the Company also capitalizes certain payroll and payroll-related costs for employees who are directly associated with internal use computer software projects. The amount of capitalizable payroll costs with respect to these employees is limited to the time directly spent on such projects. Costs associated with preliminary project stage activities, training, maintenance, and all other post-implementation stage activities are 54 Years ended June 30, Basic Effect of Employee Stock Option Shares Effect of Employee Restricted Stock Shares Diluted 2019 Net earnings $ 2,292.8 $ 2,292.8 Weighted average shares (in millions) 435.0 1.0 1.6 437.6 EPS $ 5.27 $ 5.24 2018 Net earnings $ 1,884.9 $ 1,884.9 Weighted average shares (in millions) 440.6 1.1 1.6 443.3 EPS $ 4.28 $ 4.25 2017 Net earnings $ 1,787.8 $ 1,787.8 Weighted average shares (in millions) 447.8 0.9 1.6 450.3 EPS $ 3.99 $ 3.97