Annual report pursuant to Section 13 and 15(d)

Earnings Per Share

v3.10.0.1
Earnings Per Share
12 Months Ended
Dec. 29, 2018
Earnings Per Share [Abstract]  
Earnings Per Share [Text Block]
NOTE 5 :
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.
Years Ended
(In Millions, Except Per Share Amounts)
 
Dec 29,
2018
 
Dec 30,
2017
 
Dec 31,
2016
Net income available to common stockholders
 
$
21,053

 
$
9,601

 
$
10,316

Weighted average shares of common stock outstanding—basic
 
4,611

 
4,701

 
4,730

Dilutive effect of employee incentive plans
 
50

 
47

 
53

Dilutive effect of convertible debt
 
40

 
87

 
92

Weighted average shares of common stock outstanding—diluted
 
4,701

 
4,835

 
4,875

Earnings per share - Basic
 
$
4.57

 
$
2.04

 
$
2.18

Earnings per share - Diluted
 
$
4.48

 
$
1.99

 
$
2.12


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. In December 2017, we paid cash to satisfy the conversion of our convertible debentures due 2035, which we excluded from our diluted earnings per share computation starting in the fourth quarter of 2017 and are no longer dilutive. 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. During 2018, we paid cash to satisfy the conversion of a portion of our 2009 debentures. The potentially dilutive shares associated with the converted portion were excluded from our diluted earnings per share computation in the quarter when conversions were tendered.
In all years presented, potentially dilutive securities that would have been anti-dilutive 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.