XML 64 R23.htm IDEA: XBRL DOCUMENT v2.4.0.6
Earnings Per Share
 3 Months Ended
Jul. 27, 2012
Earnings Per Share [Abstract]  
Earnings Per Share

Note 16 – 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
  July 27,  July 29,
(in millions, except per share data)2012 2011
Numerator:       
Earnings from continuing operations $864 $819
Earnings from discontinued operations   -  2
Net earnings $ 864 $821
Denominator:      
Basic – weighted average shares outstanding   1,029.8  1,063.5
Effect of dilutive securities:      
Employee stock options   1.4  1.2
Employee restricted stock units   5.7  4.7
Other   0.2  0.2
Diluted – weighted average shares outstanding   1,037.1   1,069.6
       
Basic earnings per share:      
Earnings from continuing operations $0.84 $0.77
Earnings from discontinued operations $ - $ -
Net earnings $0.84 $0.77
Diluted earnings per share:      
Earnings from continuing operations $0.83 $0.77
Earnings from discontinued operations $ - $ -
Net earnings $0.83 $0.77

The calculation of weighted average diluted shares outstanding excludes options for approximately 48 million and 57 million shares of common stock for the three months ended July 27, 2012 and July 29, 2011, respectively, because their effect would be anti-dilutive on the Company's earnings per share. For the three months ended July 27, 2012 and July 29, 2011, common share equivalents related to the Company's $2.200 billion of Senior Convertible Notes 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.