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Earnings Per Share
 6 Months Ended
Oct. 28, 2011
Earnings Per Share [Abstract]  
Earnings Per Share

Note 15 – Earnings Per Share

 

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 Six months ended
  October 28,  October 29,  October 28,  October 29,
(in millions, except per share data)2011 2010 2011 2010
Numerator:             
Net earnings $871 $566 $ 1,692 $1,396
Denominator:            
Basic – weighted average shares outstanding   1,058.1  1,080.1   1,060.6  1,083.1
Effect of dilutive securities:            
Employee stock options   0.2  0.3   0.7  0.5
Employee restricted stock awards/units   4.6  3.1   4.7  2.9
Other   0.2  0.2   0.2  0.2
Diluted – weighted average shares outstanding   1,063.1   1,083.7   1,066.2   1,086.7
             
Basic earnings per share $0.82 $0.52 $1.60 $1.29
Diluted earnings per share $0.82 $0.52 $1.59 $1.28

The calculation of weighted average diluted shares outstanding excludes options for approximately 63 million and 53 million shares of common stock for the three and six months ended October 28, 2011, respectively, and approximately 69 million and 62 million for the three and six months ended October 29, 2010, respectively, because their effect would be anti-dilutive on the Company's earnings per share. For the three and six months ended October 28, 2011 and October 29, 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.