Earnings Per Share

9 Months Ended

Sep. 27, 2015

EARNINGS PER SHARE

The following is a reconciliation of basic net earnings per share to diluted net earnings per share for the fiscal third quarters ended September 27, 2015 and September 28, 2014:



	Fiscal Third Quarters Ended
(Shares in Millions)	September 27, 2015			September 28, 2014
Basic net earnings per share	$	1.21		1.69
Average shares outstanding — basic	2,768.4			2,814.4
Potential shares exercisable under stock option plans	129.4			148.4
Less: shares which could be repurchased under treasury stock method	(92.8		)	(101.2	)
Convertible debt shares	2.2			2.7
Average shares outstanding — diluted	2,807.2			2,864.3
Diluted earnings per share	$	1.20		1.66

The diluted earnings per share calculation for both the fiscal third quarters ended September 27, 2015 and September 28, 2014 included the dilutive effect of convertible debt that was offset by the related reduction in interest expense.

The diluted net earnings per share calculation for the fiscal third quarter ended September 27, 2015 excluded 20 million shares related to stock options, as the exercise price of these options was greater than their average market value, which would result in an anti-dilutive effect on diluted earnings per share. Diluted earnings per share calculation for the fiscal third quarter ended September 28, 2014 included all shares related to stock options, as there were no options or other instruments which were anti-dilutive.

The following is a reconciliation of basic net earnings per share to diluted net earnings per share for the fiscal nine months ended September 27, 2015 and September 28, 2014:




	Fiscal Nine Months Ended
(Shares in Millions)	September 27, 2015			September 28, 2014
Basic net earnings per share	$	4.39		4.89
Average shares outstanding — basic	2,774.8			2,822.0
Potential shares exercisable under stock option plans	129.1			148.8
Less: shares which could be repurchased under treasury stock method	(89.0		)	(102.3	)
Convertible debt shares	2.2			2.7
Average shares outstanding — diluted	2,817.1			2,871.2
Diluted earnings per share	$	4.33		4.81

The diluted earnings per share calculation for both the fiscal nine months ended September 27, 2015 and September 28, 2014 included the dilutive effect of convertible debt that was offset by the related reduction in interest expense.

The diluted net earnings per share calculation for the fiscal nine months ended September 27, 2015 excluded 20 million shares related to stock options, as the exercise price of these options was greater than their average market value, which would result in an anti-dilutive effect on diluted earnings per share. Diluted net earnings per share calculation for the fiscal nine months ended September 28, 2014 included all shares related to stock options, as there were no options or other instruments which were anti-dilutive.