Earnings per Share

12 Months Ended

Jun. 28, 2014

Earnings per Share

Earnings Per Share

Net income per share - basic is computed by dividing income (loss) 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, if such exercises would be considered dilutive.

Options to purchase 2.2 million shares of common stock at June 29, 2013 and 0.8 million shares of common stock at June 30, 2012 were not included in the computation of diluted earnings per share because these options were either anti-dilutive or the exercise price was greater than the average market price of the company's outstanding common stock. No such options were excluded from the computation in 2014. In 2012, the dilutive effect of stock options and award plans were excluded from the earnings per share calculation because they would be antidilutive given the loss in the period.

The following is a reconciliation of net income to net income per share - basic and diluted - for the years ended June 28, 2014, June 29, 2013 and June 30, 2012:

In millions except earnings per share	2014		2013		2012
Income (loss) from continuing operations attributable to Hillshire Brands	$	212	$	184	$	(20	)
Income from discontinued operations attributable to Hillshire Brands	1		68		865
Net income attributable to Hillshire Brands	$	213	$	252	$	845
Average shares outstanding - basic	123		123		119
Dilutive effect of stock compensation	1		—		—
Diluted shares outstanding	124		123		119
Income (loss) per common share - Basic
Income (loss) from continuing operations	$	1.72	$	1.50	$	(0.16	)
Income from discontinued operations	0.01		0.55		7.29
Net income	$	1.73	$	2.05	$	7.13
Income (loss) per common share - Diluted
Income (loss) from continuing operations	$	1.71	$	1.49	$	(0.16	)
Income from discontinued operations	0.01		0.55		7.29
Net income	$	1.72	$	2.04	$	7.13