Earnings Per Share

6 Months Ended

Jun. 15, 2012

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

The table below illustrates the reconciliation of the earnings and number of shares used in our calculations of basic and diluted earnings per share.

	Twelve Weeks Ended				Twenty-Four Weeks Ended
	June 15, 2012		June 17, 2011		June 15, 2012		June 17, 2011
(in millions, except per share amounts)
Computation of Basic Earnings Per Share
Net income	$	143	$	135	$	247	$	236
Weighted average shares outstanding	327.9		356.9		330.8		362.0
Basic earnings per share	$	0.44	$	0.38	$	0.75	$	0.65
Computation of Diluted Earnings Per Share
Net income	$	143	$	135	$	247	$	236
Weighted average shares outstanding	327.9		356.9		330.8		362.0
Effect of dilutive securities
Employee stock option and SARs plans	6.6		9.1		6.7		9.8
Deferred stock incentive plans	0.8		0.9		0.9		0.9
Restricted stock units	2.7		2.5		3.1		3.2
Shares for diluted earnings per share	338.0		369.4		341.5		375.9
Diluted earnings per share	$	0.42	$	0.37	$	0.72	$	0.63

We compute the effect of dilutive securities using the treasury stock method and average market prices during the period. We determine dilution based on earnings.

In accordance with the applicable accounting guidance for calculating earnings per share, we have not included the following stock options and SARs in our calculation of diluted earnings per share because the exercise prices were greater than the average market prices for the applicable periods:

(a) for the twelve-week period ended June 15, 2012, 1.0 million options and SARs;

(b) for the twelve-week period ended June 17, 2011, 1.0 million options and SARs;

(c) for the twenty-four week period ended June 15, 2012, 1.0 million options and SARs; and

(d) for the twenty-four week period ended June 17, 2011, 1.0 million options and SARs.