Earnings Per Share

6 Months Ended

Jun. 27, 2020


NOTE 3 :			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						Six Months Ended
(In Millions, Except Per Share Amounts)	Jun 27, 2020		Jun 29, 2019		Jun 27, 2020		Jun 29, 2019
Net income available to common stockholders	$	5,105	$	4,179	$	10,766	$	8,153
Weighted average shares of common stock outstanding—basic	4,246		4,466		4,256		4,479
Dilutive effect of employee equity incentive plans	38		40		42		46
Dilutive effect of convertible debt	—		17		—		18
Weighted average shares of common stock outstanding—diluted	4,284		4,523		4,298		4,543
Earnings per share—basic	$	1.20	$	0.94	$	2.53	$	1.82
Earnings per share—diluted	$	1.19	$	0.92	$	2.50	$	1.79

Potentially dilutive shares of common stock from employee equity incentive plans are determined by applying the treasury stock method to the assumed exercise of outstanding stock options, the assumed vesting of outstanding RSUs, and the assumed issuance of common stock under the stock purchase plan.

In January 2020, we fully redeemed the remaining principal of our 2009 Debentures. We included our 2009 Debentures in the calculation of diluted earnings per share of common stock in 2019 by applying the treasury stock method because the average market price was above the conversion price.

Securities which would have been anti-dilutive are insignificant and are excluded from the computation of diluted earnings per share in all periods presented.