Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share

v3.7.0.1
Earnings Per Share
6 Months Ended
Jul. 01, 2017
Earnings Per Share [Abstract]  
Earnings Per Share [Text Block]
Note 4: Earnings Per Share
We computed basic earnings per share of common stock based on the weighted average number of shares of common stock outstanding during the period. We computed diluted earnings per share of common stock based on the weighted average number of shares of common stock outstanding plus potentially dilutive shares of common stock outstanding during the period.
 
 
Three Months Ended
 
Six Months Ended
(In Millions, Except Per Share Amounts)
 
Jul 1,
2017
 
Jul 2,
2016
 
Jul 1,
2017
 
Jul 2,
2016
Net income available to common stockholders
 
$
2,808

 
$
1,330

 
$
5,772

 
$
3,376

Weighted average shares of common stock outstanding—basic
 
4,710

 
4,729

 
4,717

 
4,725

Dilutive effect of employee equity incentive plans
 
36

 
49

 
48

 
57

Dilutive effect of convertible debt
 
99

 
88

 
99

 
88

Weighted average shares of common stock outstanding—diluted
 
4,845

 
4,866

 
4,864

 
4,870

Basic earnings per share of common stock
 
$
0.60

 
$
0.28

 
$
1.22

 
$
0.71

Diluted earnings per share of common stock
 
$
0.58

 
$
0.27

 
$
1.19

 
$
0.69

Potentially dilutive shares of common stock from employee incentive plans are determined by applying the treasury stock method to the assumed exercise of outstanding stock options, the assumed vesting of outstanding RSUs, and the assumed issuance of common stock under the stock purchase plan. Potentially dilutive shares of common stock for our 2005 debentures are determined by applying the if-converted method. However, as our 2009 debentures require settlement of the principal amount of the debt in cash upon conversion, with the conversion premium paid in cash or stock at our option, potentially dilutive shares of common stock are determined by applying the treasury stock method.
In all periods presented, potentially dilutive securities which would have been antidilutive are insignificant and are excluded from the computation of diluted earnings per share.
In all periods presented, we included our 2009 debentures in the calculation of diluted earnings per share of common stock because the average market price was above the conversion price. We could potentially exclude the 2009 debentures in the future if the average market price is below the conversion price.