Note 5: Earnings Per Share

We computed basic earnings per share of common stock based on the weighted average number of shares of common stock outstanding during the period. We computed diluted earnings per share of common stock based on the weighted average number of shares of common stock outstanding plus potentially dilutive shares of common stock outstanding during the period.



	Three Months Ended				Nine Months Ended
(In Millions, Except Per Share Amounts)	Sep 30, 2017		Oct 1, 2016		Sep 30, 2017		Oct 1, 2016
Net income available to common stockholders	$	4,516	$	3,378	$	10,288	$	6,754
Weighted average shares of common stock outstanding—basic	4,688		4,734		4,707		4,728
Dilutive effect of employee equity incentive plans	34		47		43		54
Dilutive effect of convertible debt	99		96		99		90
Weighted average shares of common stock outstanding—diluted	4,821		4,877		4,849		4,872
Basic earnings per share of common stock	$	0.96	$	0.71	$	2.19	$	1.43
Diluted earnings per share of common stock	$	0.94	$	0.69	$	2.12	$	1.39

Potentially dilutive shares of common stock 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 (RSUs), and the assumed issuance of common stock under the stock purchase plan. Potentially dilutive shares of common stock for our 2005 debentures are determined by applying the if-converted method. 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 shares of common stock are determined by applying the treasury stock method.

In all periods presented, potentially dilutive securities which would have been antidilutive are insignificant and are excluded from the computation of diluted earnings per share.

In all periods presented, we included our 2009 debentures in the calculation of diluted earnings per share of common stock 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.