Earnings Per Share

6 Months Ended

Jul. 02, 2022


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)	Jul 2, 2022		Jun 26, 2021		Jul 2, 2022		Jun 26, 2021
Net income (loss) available to common stockholders	$	(454)	$	5,061	$	7,659	$	8,422
Weighted average shares of common stock outstanding—basic	4,100		4,049		4,095		4,053
Dilutive effect of employee equity incentive plans	—		35		25		37

Weighted average shares of common stock outstanding—diluted	4,100		4,084		4,120		4,090
Earnings (loss) per share—basic	$	(0.11)	$	1.25	$	1.87	$	2.08
Earnings (loss) per share—diluted	$	(0.11)	$	1.24	$	1.86	$	2.06

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. Due to our net loss in the second quarter of 2022, 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 had an antidilutive effect on diluted earnings per share. If we had recognized net income during the second quarter, the dilutive effect of employee equity incentive plans would have been 22 million shares.

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