Earnings Per Share

12 Months Ended

Jul. 31, 2011

Earnings Per Share

Earnings Per Share

9.   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. Share-based payment awards granted prior to fiscal 2011 contained 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 company adopted and retrospectively applied the new guidance in the first quarter of fiscal 2010. The retrospective application of the provisions resulted in a reduction of basic and diluted earnings per share:

	2009
	Basic	Diluted
Earnings from continuing operations attributable to Campbell Soup Company	$(.03)	$(.01)
Net earnings attributable to Campbell Soup Company	$(.03)	$(.01)

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

	2011	2010	2009
Earnings from continuing operations attributable to Campbell Soup Company	$          805	$          844	$          732
Less: Allocation of earnings to participating securities	(9)	(14)	(12)
Available to Campbell Soup Company common shareowners	$          796	$          830	$          720
Earnings from discontinued operations attributable to Campbell Soup Company	$            —	$            —	$              4
Less: Allocation of earnings to participating securities	—	—	—
Available to Campbell Soup Company common shareowners	$            —	$            —	$              4
Net earnings attributable to Campbell Soup Company	$          805	$          844	$          736
Less: Allocation of earnings to participating securities	(9)	(14)	(12)
Available to Campbell Soup Company common shareowners	$          796	$          830	$          724
Weighted average shares outstanding – basic	326	340	352
Effect of dilutive securities:  stock options and other share-based payment awards	3	3	2
Weighted average shares outstanding – diluted	329	343	354
Earnings from continuing operations attributable to Campbell Soup Company per common share:
Basic	$         2.44	$         2.44	$         2.05
Diluted	$         2.42	$         2.42	$         2.03
Earnings from discontinued operations attributable to Campbell Soup Company per common share:
Basic	$             —	$             —	$           .01
Diluted	$             —	$             —	$           .01
Net earnings attributable to Campbell Soup Company per common share (1):
Basic	$         2.44	$         2.44	$         2.06
Diluted	$         2.42	$         2.42	$         2.05
(1)  The sum of the individual per share amounts does not equal due to rounding.

There were no antidilutive stock options in 2011. Stock options to purchase less than 1 million shares of capital stock in 2010, and 3 million shares of capital stock in 2009 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.