Earnings Per Share

9 Months Ended

Sep. 27, 2020

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 and fiscal nine months ended September 27, 2020 and September 29, 2019:


	Fiscal Third Quarter Ended				Fiscal Nine Months Ended
(Shares in Millions)	September 27, 2020		September 29, 2019	September 27, 2020	September 29, 2019
Basic net earnings per share	$	1.35	0.67	4.93	4.19
Average shares outstanding — basic	2,632.5		2,635.2	2,633.0	2,649.5
Potential shares exercisable under stock option plans	115.7		117.8	120.2	137.6
Less: shares which could be repurchased under treasury stock method	(78.9)		(83.8)	(82.4)	(99.7)
Convertible debt shares	—		0.7	—	0.7
Average shares outstanding — diluted	2,669.3		2,669.9	2,670.8	2,688.1
Diluted net earnings per share	$	1.33	0.66	4.86	4.13

The diluted net earnings per share calculation for the fiscal third quarter ended September 27, 2020 excluded 20 million shares related to stock options, as the exercise price of these options was greater than their average market value. In the fiscal third quarter ended September 27, 2020 the Company did not have convertible debt.

The diluted net earnings per share calculation for the fiscal third quarter ended September 29, 2019 excluded 19 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 third quarter ended September 29, 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 nine months ended September 27, 2020 excluded 17 million shares related to stock options, as the exercise price of these options was greater than their average market value. In the fiscal nine months ended September 27, 2020 the Company did not have convertible debt.

The diluted net earnings per share calculation for the fiscal nine months ended September 29, 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 the fiscal nine months ended September 29, 2019 included the dilutive effect of convertible debt that was offset by the related reduction in interest expense.