Earnings Per Share

9 Months Ended

Sep. 30, 2012

Earnings Per Share [Abstract]

EARNINGS PER SHARE

EARNINGS PER SHARE

The following is a reconciliation of basic net earnings per share to diluted net earnings per share for the fiscal third quarters ended September 30, 2012 and October 2, 2011:

	Fiscal Third Quarters Ended
(Shares in Millions)	September 30, 2012			October 2, 2011
Basic net earnings per share attributable to Johnson & Johnson	$	1.08		$	1.17
Average shares outstanding — basic	2,757.4			2,737.0
Potential shares exercisable under stock option plans	181.6			165.0
Less: shares which could be repurchased under treasury stock method	(141.5		)	(127.4		)
Convertible debt shares	3.6			3.6
Accelerated share repurchase program	17.0			—
Average shares outstanding — diluted	2,818.1			2,778.2
Diluted earnings per share attributable to Johnson & Johnson	$	1.05		$	1.15

The diluted earnings per share calculation for both fiscal third quarters ended September 30, 2012 and October 2, 2011 included the dilutive effect of convertible debt that was offset by the related reduction in interest expense.

The diluted earnings per share calculation for the fiscal third quarter ended September 30, 2012 included the dilutive effect of 17.0 million shares related to the accelerated share repurchase program, associated with the acquisition of Synthes, Inc. See Note 10 to the Consolidated Financial Statements for additional details. A $1 increase/decrease in the volume weighted average share price would impact this estimate by approximately 2.7 million shares.

The diluted earnings per share calculation for the fiscal third quarter ended September 30, 2012 included all shares related to stock options, as the exercise price of all options was less than the average market value of the Company's stock during the quarter. The diluted earnings per share calculation for the fiscal third quarter ended October 2, 2011, excluded 51 million shares related to stock options, as the exercise price of these options was greater than their average market value, which would result in an anti-dilutive effect on diluted earnings per share.

The following is a reconciliation of basic net earnings per share to diluted net earnings per share for the fiscal nine months ended September 30, 2012 and October 2, 2011:

	Fiscal Nine Months Ended
(Shares in Millions)	September 30, 2012			October 2, 2011
Basic net earnings per share attributable to Johnson & Johnson	$	3.02		$	3.45
Average shares outstanding — basic	2,747.1			2,738.5
Potential shares exercisable under stock option plans	181.5			164.7
Less: shares which could be repurchased under treasury stock method	(144.2		)	(129.2		)
Convertible debt shares	3.6			3.6
Accelerated share repurchase program	17.0			—
Average shares outstanding — diluted	2,805.0			2,777.6
Diluted earnings per share attributable to Johnson & Johnson	$	2.96		$	3.40

The diluted earnings per share calculation for both the fiscal nine months ended September 30, 2012 and October 2, 2011 included the dilutive effect of convertible debt that was offset by the related reduction in interest expense.

The diluted earnings per share calculation for the fiscal nine months ended September 30, 2012 included the dilutive effect of 17.0 million shares related to the accelerated share repurchase program, associated with the acquisition of Synthes, Inc. See Note 10 to the Consolidated Financial Statements for additional details. A $1 increase/decrease in the volume weighted average share price would impact this estimate by approximately 2.7 million shares.

The diluted earnings per share calculation for the fiscal nine months ended September 30, 2012 and October 2, 2011, excluded 1 million and 51 million shares, respectively, related to stock options, as the exercise price of these options was greater than their average market value, which would result in an anti-dilutive effect on diluted earnings per share.