Intel Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share

Earnings Per Share

6 Months Ended

Jun. 30, 2018

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				Six Months Ended
(In Millions, Except Per Share Amounts)	Jun 30, 2018		Jul 1, 2017		Jun 30, 2018		Jul 1, 2017
Net income available to common stockholders	$	5,006	$	2,808	$	9,460	$	5,772
Weighted average shares of common stock outstanding – basic	4,649		4,710		4,661		4,717
Dilutive effect of employee equity incentive plans	52		36		59		48
Dilutive effect of convertible debt	46		99		48		99
Weighted average shares of common stock outstanding – diluted	4,747		4,845		4,768		4,864
Earnings per share – Basic	$	1.08	$	0.60	$	2.03	$	1.22
Earnings per share – Diluted	$	1.05	$	0.58	$	1.98	$	1.19

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. In December 2017, we paid cash to satisfy the conversion of our 2035 debentures, which we excluded from our dilutive earnings per share computation starting in the fourth quarter of 2017 and are no longer dilutive. Our 2039 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. As of June 30, 2018, we paid cash to satisfy the conversion of a portion of our 2039 debentures. The potentially dilutive shares associated with the converted portion are excluded from our diluted earnings per share computation in the first six months of 2018 as they are no longer dilutive.

In all periods presented, potentially dilutive outstanding securities which would have been antidilutive are insignificant and are excluded from the computation of diluted earnings per share. In all periods presented, we included our outstanding 2039 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 2039 debentures in the future if the average market price is below the conversion price.