Basic earnings per share is computed based on the weighted average number of common shares outstanding. Diluted earnings per share is computed based on the weighted average number of common shares outstanding, increased by the number of additional shares that would have been outstanding had the potentially dilutive common shares been issued and reduced by the number of shares the Company could have repurchased from the proceeds from issuance of the potentially dilutive shares. Potentially dilutive shares of common stock include stock options and other stock-based awards granted under stock-based compensation plans and shares committed to be purchased under the employee stock purchase plan.

The table below sets forth the computation of basic and diluted earnings per share:

	Three months ended
	July 29,		July 30,
(in millions, except per share data)	2011		2010
Numerator:
Net earnings	$	821	$	830
Denominator:
Basic – weighted average shares outstanding		1,063.5		1,086.1
Effect of dilutive securities:
Employee stock options		1.2		0.6
Employee restricted stock awards/units		4.7		2.7
Other		0.2		0.3
Diluted – weighted average shares outstanding		1,069.6		1,089.7

Basic earnings per share	$	0.77	$	0.76
Diluted earnings per share	$	0.77	$	0.76

The calculation of weighted average diluted shares outstanding excludes options for approximately 57 million and 64 million shares of common stock for the three months ended July 29, 2011 and July 30, 2010, respectively, as the exercise price of those options was greater than the average market price, resulting in an anti-dilutive effect on diluted earnings per share. For the three months ended July 29, 2011 and July 30, 2010, common share equivalents related to the Company's $2.200 billion and $4.400 billion of Senior Convertible Notes, respectively, were anti-dilutive as the market price of the Company's stock was below the conversion price of the Senior Convertible Notes and, therefore, were excluded from the calculation of weighted average diluted shares.