Annual report pursuant to Section 13 and 15(d)

Earnings Per Share

v3.3.1.900
Earnings Per Share
 12 Months Ended
Dec. 26, 2015
Earnings Per Share [Abstract]  
Earnings Per Share [Text Block]
Note 22: 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 26,
2015
 
Dec 27,
2014
 
Dec 28,
2013
Net income available to common stockholders
 
$
11,420

 
$
11,704

 
$
9,620

Weighted average shares of common stock outstanding—basic
 
4,742

 
4,901

 
4,970

Dilutive effect of employee equity incentive plans
 
64

 
75

 
68

Dilutive effect of convertible debt
 
88

 
80

 
59

Weighted average shares of common stock outstanding—diluted
 
4,894

 
5,056

 
5,097

Basic earnings per share of common stock
 
$
2.41

 
$
2.39

 
$
1.94

Diluted earnings per share of common stock
 
$
2.33

 
$
2.31

 
$
1.89


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 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. For further discussion on the specific conversion features of our 2005 and 2009 debentures, see "Note 15: Borrowings."
In 2015, we excluded on average 2 million outstanding stock options and RSUs from the computation of diluted earnings per share of common stock because these shares of common stock would have been anti-dilutive (10 million in 2014 and 55 million in 2013). 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 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.