Earnings Per Share

6 Months Ended

Jun. 28, 2020

EARNINGS PER SHARE

The following is a reconciliation of basic net earnings per share to diluted net earnings per share for the fiscal second quarters and fiscal six months ended June 28, 2020 and June 30, 2019:


	Fiscal Second Quarter Ended				Fiscal Six Months Ended
(Shares in Millions)	June 28, 2020		June 30, 2019	June 28, 2020	June 30, 2019
Basic net earnings per share	$	1.38	2.11	3.58	3.52
Average shares outstanding — basic	2,632.9		2,652.5	2,633.3	2,656.7
Potential shares exercisable under stock option plans	119.6		140.8	122.6	138.6
Less: shares which could be repurchased under treasury stock method	(87.5)		(102.3)	(85.4)	(99.0)
Convertible debt shares	0.5		0.7	0.5	0.7
Average shares outstanding — diluted	2,665.5		2,691.7	2,671.0	2,697.0
Diluted net earnings per share	$	1.36	2.08	3.53	3.47

The diluted net earnings per share calculation for both the fiscal second quarters ended June 28, 2020 and June 30, 2019 included the dilutive effect of convertible debt that was offset by the related reduction in interest expense. The diluted net earnings per share calculation for the fiscal second quarter ended June 28, 2020 excluded 20 million shares related to stock options, as the exercise price of these options was greater than their average market value. The diluted net earnings per share calculation for the fiscal second quarter ended June 30, 2019 excluded an insignificant number of shares related to stock options, as the exercise price of these options was greater than their average market value.

The diluted net earnings per share calculation for both the fiscal six months ended June 28, 2020 and June 30, 2019 included the dilutive effect of convertible debt that was offset by the related reduction in interest expense. The diluted net earnings per share calculation for the fiscal six months ended June 28, 2020 excluded 15 million shares related to stock options, as the exercise price of these options was greater than their average market value. The diluted net earnings per share calculation for the fiscal six months ended June 30, 2019 excluded an insignificant number of shares related to stock options, as the exercise price of these options was greater than their average market value.