Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share

v3.19.3
Earnings Per Share
9 Months Ended
Sep. 28, 2019
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
 
Nine Months Ended
(In Millions, Except Per Share Amounts)
 
Sep 28,
2019
 
Sep 29,
2018
 
Sep 28,
2019
 
Sep 29,
2018
Net income available to common stockholders
 
$
5,990

 
$
6,398

 
$
14,143

 
$
15,858

Weighted average shares of common stock outstanding – basic
 
4,391

 
4,574

 
4,450

 
4,632

Dilutive effect of employee equity incentive plans
 
30

 
40

 
41

 
52

Dilutive effect of convertible debt
 
12

 
34

 
16

 
44

Weighted average shares of common stock outstanding – diluted
 
4,433

 
4,648

 
4,507

 
4,728

Earnings per share – basic
 
$
1.36

 
$
1.40

 
$
3.18

 
$
3.42

Earnings per share – diluted
 
$
1.35

 
$
1.38

 
$
3.14

 
$
3.35

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 3.25% junior subordinated 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. We included our 2009 debentures in the calculation of diluted earnings per share of common stock in all periods presented because the average market price was above the conversion price.
Securities which would have been anti-dilutive are insignificant and are excluded from the computation of diluted earnings per share in all periods presented.