Earnings Per Share

6 Months Ended

Jul. 03, 2022

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 3, 2022		July 4, 2021	July 3, 2022	July 4, 2021
Basic net earnings per share	$	1.83	2.38	3.79	4.74
Average shares outstanding — basic	2,629.6		2,632.5	2,629.4	2,632.0
Potential shares exercisable under stock option plans	143.7		141.9	141.8	126.0
Less: shares which could be repurchased under treasury stock method	(105.4)		(102.8)	(102.0)	(84.0)

Average shares outstanding — diluted	2,667.9		2,671.6	2,669.2	2,674.0
Diluted net earnings per share	$	1.80	2.35	3.73	4.67

The diluted net earnings per share calculation for both the fiscal second quarter ended July 3, 2022 and 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.

The diluted net earnings per share calculation for the fiscal six months ended July 3, 2022 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. The diluted net earnings per share calculation for the 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 the average market value of the Company's stock.