Earnings per Share

9 Months Ended

May 01, 2011

Earnings per Share

Earnings per Share

7.  Earnings per Share

In June 2008, the FASB issued accounting guidance related to the calculation of earnings per share.  The guidance provides that unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the computation of earnings per share pursuant to the two-class method.  Prior to fiscal 2011, the company granted share-based payment awards with non-forfeitable rights to dividends or dividend equivalents.  The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings.

The computation of basic and diluted earnings per share attributable to common shareowners is as follows:

	Three Months Ended		Nine Months Ended
	May1,	May2,	May1,	May2,
	2011	2010	2011	2010
Net earnings attributable to Campbell Soup Company	$          187	$          168	$          705	$          731
Less: net earnings allocated to participating securities	(2)	(2)	(8)	(12)
Net earnings available to Campbell Soup Company common shareowners	$          185	$          166	$          697	$          719
Weighted average shares outstanding – basic	321	339	328	341
Effect of dilutive securities:  stock options	2	3	3	3
Weighted average shares outstanding – diluted	323	342	331	344
Net earnings attributable to Campbell Soup Company per common share:
Basic	$        .58	$        .49	$        2.13	$         2.11
Diluted	$        .57	$        .49	$        2.11	$         2.09

There were no antidilutive stock options for the three-month periods ended May 1, 2011 and May 2, 2010 and the nine-month period ended May 1, 2011.  Stock options to purchase less than 1 million shares of capital stock for the nine-month period ended May 2, 2010 were not included in the calculation of diluted earnings per share because the exercise price of the stock options exceeded the average market price of the capital stock and, therefore, would be antidilutive.