EARNINGS PER SHARE

12 Months Ended

Dec. 28, 2012

Earnings Per Share [Abstract]

Earnings Per Share

EARNINGS PER SHARE

The table below illustrates the reconciliation of the earnings and number of shares used in our calculations of basic and diluted earnings per share:

	2012		2011		2010
(in millions, except per share amounts)
Computation of Basic Earnings Per Share
Net income	$	571	$	198	$	458
Weighted average shares outstanding	322.6		350.1		362.8
Basic earnings per share	$	1.77	$	0.56	$	1.26
Computation of Diluted Earnings Per Share
Net income	$	571	$	198	$	458
Weighted average shares outstanding	322.6		350.1		362.8
Effect of dilutive securities
Employee stock option and SARs plans	6.1		8.0		11.0
Deferred stock incentive plans	0.9		0.9		1.1
Restricted stock units	3.3		3.3		3.4
Shares for diluted earnings per share	332.9		362.3		378.3
Diluted earnings per share	$	1.72	$	0.55	$	1.21

We compute the effect of dilutive securities using the treasury stock method and average market prices during the period. We determine dilution based on earnings.

Pursuant to the applicable accounting guidance for calculating earnings per share, we have not included the following stock options and SARs in our calculation of diluted earnings per share because their exercise prices were greater than the average market prices for the applicable periods:

(a) for 2012, 1.0 million options and SARs;

(b) for 2011, 4.1 million options and SARs; and

(c) for 2010, 2.4 million options and SARs.