Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share

v2.4.1.9
Earnings Per Share
 3 Months Ended
Mar. 28, 2015
Earnings Per Share [Abstract]  
Earnings Per Share [Text Block]
Note 17: Earnings Per Share
We computed our basic and diluted earnings per common share for each period as follows:
 
 
Three Months Ended
(In Millions, Except Per Share Amounts)
 
Mar 28,
2015
 
Mar 29,
2014
Net income available to common stockholders
 
$
1,992

 
$
1,930

Weighted average shares of common stock outstanding—basic
 
4,741

 
4,974

Dilutive effect of employee equity incentive plans
 
82

 
76

Dilutive effect of convertible debt
 
91

 
67

Weighted average shares of common stock outstanding—diluted
 
4,914

 
5,117

Basic earnings per share of common stock
 
$
0.42

 
$
0.39

Diluted earnings per share of common stock
 
$
0.41

 
$
0.38


We computed basic earnings per share of common stock using net income available to common stockholders and the weighted average number of shares of common stock outstanding during the period. We computed diluted earnings per share of common stock using net income available to common stockholders and the weighted average number of shares of common stock outstanding plus potentially dilutive shares of common stock outstanding during the period. Net income available to participating securities was insignificant for all periods presented.
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 restricted stock units, 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.
During the first three months of 2015, we excluded on average 3 million outstanding stock options and restricted stock units from the computation of diluted earnings per share of common stock because these shares of common stock would have been antidilutive (33 million for the first three months of 2014). These options could potentially be included in the diluted earnings per share of common stock calculation in the future if the average market value of the shares of common stock increases and is greater than the exercise price of these options.
In the first three months of 2015 and 2014, 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.