Earnings Per Share

9 Months Ended

Sep. 28, 2013

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Note 16: Earnings Per Share

We computed our basic and diluted earnings per common share during each period as follows:

	Three Months Ended				Nine Months Ended
(In Millions, Except Per Share Amounts)	Sep 28, 2013		Sep 29, 2012		Sep 28, 2013		Sep 29, 2012
Net income available to common stockholders	$	2,950	$	2,972	$	6,995	$	8,537
Weighted average common shares outstanding—basic	4,981		4,996		4,969		5,006
Dilutive effect of employee equity incentive plans	60		93		68		109
Dilutive effect of convertible debt	59		64		58		66
Weighted average common shares outstanding—diluted	5,100		5,153		5,095		5,181
Basic earnings per common share	$	0.59	$	0.59	$	1.41	$	1.71
Diluted earnings per common share	$	0.58	$	0.58	$	1.37	$	1.65

We computed basic earnings per common share using net income available to common stockholders and the weighted average number of common shares outstanding during the period. We computed diluted earnings per common share using net income available to common stockholders and the weighted average number of common shares outstanding plus potentially dilutive common shares outstanding during the period. Net income available to participating securities was insignificant for all periods presented.

Potentially dilutive common shares 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 common shares are determined by applying the if-converted method for our 2005 debentures. 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 common shares are determined by applying the treasury stock method.

During the third quarter of 2013, we excluded 56 million outstanding stock options and restricted stock units from the computation of diluted earnings per common share because these would have been antidilutive (24 million for the third quarter of 2012). During the first nine months of 2013, we excluded on average 56 million outstanding stock options and restricted stock units from the computation of diluted earnings per common share because these would have been antidilutive (18 million for the first nine months of 2012). These options could potentially be included in the diluted earnings per common share calculation in the future if the average market value of the common shares increases and is greater than the exercise price of these options.

In the third quarters of 2013 and 2012, we included our 2009 debentures in the calculation of diluted earnings per common share 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.