Earnings Per Share

12 Months Ended

Dec. 25, 2015

The following table sets forth the computation of basic earnings per share and earnings per share, assuming dilution:



	Fiscal Years
	2015			2014			2013
Numerator (Dollars in Millions):
Net Earnings	$	1,968		$	1,927		$	1,864
Dividend Equivalents on Restricted Stock	(1		)	(1		)	—
Net Earnings, Attributable to Common Shareholders	$	1,967		$	1,926		$	1,864

Denominator (Units in Millions):
Average Common Shares Outstanding	983			1,001			1,019
Other Potentially Dilutive Common Shares	1			1			—
Average Common Shares Outstanding, Assuming Dilution	984			1,002			1,019

Net Earnings Per Share, Basic	$	2.00		$	1.93		$	1.83
Net Earnings Per Share, Assuming Dilution	$	2.00		$	1.92		$	1.83

NOTE 2. Earnings Per Share, continued

Basic earnings per share is based on the weighted-average number of shares of common stock outstanding. Earnings per share, assuming dilution, is based on the weighted-average number of shares of common stock equivalents outstanding adjusted for the effects of common stock that may be issued as a result of potentially dilutive instruments. CSX's potentially dilutive instruments are made up of employee stock options and equity awards, which include long-term incentive awards.

The Earnings Per Share Topic in the ASC requires CSX to include additional shares in the computation of earnings per share, assuming dilution. The additional shares included in diluted earnings per share represent the number of shares that would be issued if all of the above potentially dilutive instruments were converted into CSX common stock.

When calculating diluted earnings per share, the Earnings Per Share Topic in the ASC requires CSX to include the potential shares that would be outstanding if all outstanding stock options were exercised. This number is different from outstanding stock options, which is included in Note 4, Stock Plans and Share-Based Compensation, because it is offset by shares CSX could repurchase using the proceeds from these hypothetical exercises to obtain the common stock equivalent. Outstanding stock options were excluded from the diluted earnings per share calculation as the effect of their inclusion currently would be anti-dilutive.