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Net Income (Loss) Per Share
 3 Months Ended
Sep. 28, 2013
Earnings Per Share [Abstract]  
Net Income (Loss) Per Share
2. Net Income Per Share

Net income per share - basic is computed by dividing income attributable to Hillshire Brands by the weighted average number of common shares outstanding for the period. Net income per share - diluted reflects the potential dilution that could occur if options and fixed awards to be issued under stock-based compensation arrangements were converted into common stock. For the quarter ended September 28, 2013, options to purchase 0.2 million shares of the company’s common stock had exercise prices that were greater than the average market price of those shares during the respective reporting periods. For the quarter ended September 29, 2012, options to purchase 3.2 million of the company’s common stock had exercise prices that were greater than the average market price of those shares during the respective reporting periods.

The average shares outstanding increased in the first quarter of 2014 as compared to the first quarter of 2013 as a result of stock issuances related to the exercise of stock options and the vesting of restricted stock units (RSUs). In the first quarter of 2014, the company repurchased 0.3 million shares at a cost of $10 million under an existing share repurchase program which authorized the company to repurchase $1.2 billion of common stock.

As of September 28, 2013, the remaining amount authorized for repurchase is approximately $1.2 billion of common stock under one of its existing share repurchase programs, plus 2.7 million shares of common stock that remain authorized for repurchase under the company's other share repurchase program.
The following is a reconciliation of net income to net income per share – basic and diluted – for the first quarter of 2014 and 2013 (per share amounts are rounded and may not add to total):
Computation of Net Income per Common Share
(In millions, except per share data)
 
 
Quarter ended
 
September 28, 2013
 
September 29, 2012
Amounts attributable to Hillshire Brands
 
 
 
Income from continuing operations
$
29

 
$
49

Income from discontinued operations, net of tax
—

 
4

Net income
$
29

 
$
53

Average shares outstanding – Basic
123

 
122

Dilutive effect of stock option and award plans
2

 
1

Diluted shares outstanding
125

 
123

Earnings per common share—Basic
 
 
 
Income from continuing operations
$
0.24

 
$
0.40

Income from discontinued operations
—

 
0.03

Net income
$
0.24

 
$
0.43

Earnings per common share – Diluted
 
 
 
Income from continuing operations
$
0.23

 
$
0.40

Income from discontinued operations
—

 
0.03

Net income
$
0.23

 
$
0.43