Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share

v3.3.0.814
Earnings Per Share
 9 Months Ended
Sep. 26, 2015
Earnings Per Share [Abstract]  
Earnings Per Share [Text Block]
Note 18: Earnings Per Share
We computed our basic and diluted earnings per common share for each period as follows:
 
 
Three Months Ended
 
Nine Months Ended
(In Millions, Except Per Share Amounts)
 
Sep 26,
2015
 
Sep 27,
2014
 
Sep 26,
2015
 
Sep 27,
2014
Net income available to common stockholders
 
$
3,109

 
$
3,317

 
$
7,807

 
$
8,043

Weighted average shares of common stock outstanding—basic
 
4,747

 
4,880

 
4,749

 
4,945

Dilutive effect of employee equity incentive plans
 
48

 
76

 
64

 
73

Dilutive effect of convertible debt
 
81

 
89

 
87

 
77

Weighted average shares of common stock outstanding—diluted
 
4,876

 
5,045

 
4,900

 
5,095

Basic earnings per share of common stock
 
$
0.65

 
$
0.68

 
$
1.64

 
$
1.63

Diluted earnings per share of common stock
 
$
0.64

 
$
0.66

 
$
1.59

 
$
1.58


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 third quarter of 2015, we excluded on average 4 million outstanding stock options and restricted stock units from the computation of diluted earnings per common share because these would have been antidilutive (no outstanding stock options and restricted stock units were excluded for the third quarter of 2014). During the first nine months of 2015, we excluded on average 2 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 (14 million for the first nine 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.
During the third quarter 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.