Annual report pursuant to Section 13 and 15(d)

Earnings Per Share

v3.6.0.2
Earnings Per Share
12 Months Ended
Dec. 31, 2016
Earnings Per Share [Abstract]  
Earnings Per Share [Text Block]
Note 5: Earnings Per Share
We computed our basic and diluted earnings per share of common stock for each period as follows:
Years Ended
(In Millions, Except Per Share Amounts)
 
Dec 31,
2016
 
Dec 26,
2015
 
Dec 27,
2014
Net income available to common stockholders
 
$
10,316

 
$
11,420

 
$
11,704

Weighted average shares of common stock outstanding—basic
 
4,730

 
4,742

 
4,901

Dilutive effect of employee incentive plans
 
53

 
64

 
75

Dilutive effect of convertible debt
 
92

 
88

 
80

Weighted average shares of common stock outstanding—diluted
 
4,875

 
4,894

 
5,056

Basic earnings per share of common stock
 
$
2.18

 
$
2.41

 
$
2.39

Diluted earnings per share of common stock
 
$
2.12

 
$
2.33

 
$
2.31


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.
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 years presented, potentially dilutive securities whose effect would have been antidilutive are insignificant and are excluded from the computation of diluted earnings per share.
In all years 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.