Intel Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share

Earnings Per Share

6 Months Ended

Jun. 29, 2019



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)	Jun 29, 2019		Jun 30, 2018		Jun 29, 2019		Jun 30, 2018
Net income available to common stockholders	$	4,179	$	5,006	$	8,153	$	9,460
Weighted average shares of common stock outstanding – basic	4,466		4,649		4,479		4,661
Dilutive effect of employee equity incentive plans	40		52		46		59
Dilutive effect of convertible debt	17		46		18		48
Weighted average shares of common stock outstanding – diluted	4,523		4,747		4,543		4,768
Earnings per share – basic	$	0.94	$	1.08	$	1.82	$	2.03
Earnings per share – diluted	$	0.92	$	1.05	$	1.79	$	1.98

Potentially dilutive shares of common stock from employee equity incentive plans are determined by applying the treasury stock method to the assumed exercise of outstanding stock options, the assumed vesting of outstanding restricted stock units (RSUs), and the assumed issuance of common stock under the stock purchase plan. Our convertible debentures due 2039 (2009 debentures) require settlement of the principal amount of the debt in cash upon conversion. Since the conversion premium is paid in cash or stock at our option, we determined the potentially dilutive shares of common stock by applying the treasury stock method.

In all periods presented, securities which would have been anti-dilutive 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.