Earnings Per Share

6 Months Ended

Jul. 04, 2021

EARNINGS PER SHARE

The following is a reconciliation of basic net earnings per share to diluted net earnings per share:


	Fiscal Second Quarter Ended			Fiscal Six Months Ended
(Shares in Millions)	July 4, 2021		June 28, 2020	July 4, 2021	June 28, 2020
Basic net earnings per share	$	2.38	1.38	4.74	3.58
Average shares outstanding — basic	2,632.5		2,632.9	2,632.0	2,633.3
Potential shares exercisable under stock option plans	141.9		119.6	126.0	122.6
Less: shares which could be repurchased under treasury stock method	(102.8)		(87.5)	(84.0)	(85.4)
Convertible debt shares	—		0.5	—	0.5
Average shares outstanding — diluted	2,671.6		2,665.5	2,674.0	2,671.0
Diluted net earnings per share	$	2.35	1.36	4.67	3.53

The diluted net earnings per share calculation for the fiscal second quarter ended July 4, 2021 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. In the fiscal second quarter ended July 4, 2021, the Company did not have convertible debt.

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 28, 2020 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 first fiscal six months ended July 4, 2021 excluded 14 million shares related to stock options, as the exercise price of these options was greater than their average market value. In the first fiscal six months ended July 4, 2021, the Company did not have convertible debt.

The diluted net earnings per share calculation for the first 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 first fiscal six months ended June 28, 2020 included the dilutive effect of convertible debt that was offset by the related reduction in interest expense.