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 29, 2013 and September 30, 2012:



	Fiscal Third Quarters Ended
(Shares in Millions)	September 29, 2013			September 30, 2012
Basic net earnings per share attributable to Johnson & Johnson	$	1.06		$	1.08
Average shares outstanding — basic	2,818.4			2,757.4
Potential shares exercisable under stock option plans	154.1			181.6
Less: shares which could be repurchased under treasury stock method	(107.9		)	(141.5		)
Convertible debt shares	3.0			3.6
Accelerated share repurchase program	13.6			17.0
Average shares outstanding — diluted	2,881.2			2,818.1
Diluted earnings per share attributable to Johnson & Johnson	$	1.04		$	1.05

The diluted earnings per share calculation for both fiscal third quarters ended September 29, 2013 and September 30, 2012 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 quarters ended September 29, 2013 and September 30, 2012 included the dilutive effect of 13.6 million shares and 17.0 million shares, respectively, 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.

The diluted earnings per share calculation for both the fiscal third quarters ended September 29, 2013 and 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 following is a reconciliation of basic net earnings per share to diluted net earnings per share for the fiscal nine months ended September 29, 2013 and September 30, 2012:



	Fiscal Nine Months Ended
(Shares in Millions)	September 29, 2013			September 30, 2012
Basic net earnings per share attributable to Johnson & Johnson	$	3.68		$	3.02
Average shares outstanding — basic	2,805.6			2,747.1
Potential shares exercisable under stock option plans	154.7			181.5
Less: shares which could be repurchased under treasury stock method	(110.4		)	(144.2		)
Convertible debt shares	3.0			3.6
Accelerated share repurchase program	26.1			17.0
Average shares outstanding — diluted	2,879.0			2,805.0
Diluted earnings per share attributable to Johnson & Johnson	$	3.58		$	2.96

The diluted earnings per share calculation for both fiscal nine months ended September 29, 2013 and September 30, 2012 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 29, 2013 and September 30, 2012 included the dilutive effect of 26.1 million shares and 17.0 million shares, respectively, 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.

The diluted earnings per share calculation for the fiscal nine months ended September 29, 2013 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 nine months ended September 30, 2012 excluded 1.0 million shares related to stock options, as the exercise price of these options was greater than the average market value, which would result in an anti-dilutive effect on diluted earnings per share.