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Earnings Per Share
 6 Months Ended
Jul. 03, 2011
Earnings Per Share [Abstract]  
EARNINGS PER SHARE
NOTE 8 — 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 ended July 3, 2011 and July 4, 2010.
                 
    Fiscal Quarters Ended
    July 3,   July 4,
(Shares in Millions)   2011   2010
Basic net earnings per share
  $ 1.01     $ 1.25  
Average shares outstanding — basic
    2,740.5       2,756.6  
Potential shares exercisable under stock option plans
    168.9       175.5  
Less: shares which could be repurchased under treasury stock method
    (131.7 )     (139.7 )
Convertible debt shares
    3.6       3.6  
Average shares outstanding — diluted
    2,781.3       2,796.0  
Diluted earnings per share
  $ 1.00     $ 1.23  
The diluted earnings per share calculation for both fiscal second quarters ended July 3, 2011 and July 4, 2010 included the dilutive effect of convertible debt that was offset by the related reduction in interest expense.
The diluted earnings per share calculation for the fiscal second quarters ended July 3, 2011 and July 4, 2010, excluded 51 million and 68 million shares, respectively, related to stock options, as the exercise price of these options was greater than their average market value, which would result in an anti-dilutive effect on diluted earnings per share.
The following is a reconciliation of basic net earnings per share to diluted net earnings per share for the fiscal six months ended July 3, 2011 and July 4, 2010.
                 
    Fiscal Six Months Ended
    July 3,   July 4,
(Shares in Millions)   2011   2010
Basic net earnings per share
  $ 2.28     $ 2.89  
Average shares outstanding — basic
    2,739.6       2,755.7  
Potential shares exercisable under stock option plans
    168.8       175.4  
Less: shares which could be repurchased under treasury stock method
    (133.9 )     (138.6 )
Convertible debt shares
    3.6       3.6  
Average shares outstanding — diluted
    2,778.1       2,796.1  
Diluted earnings per share
  $ 2.25     $ 2.85  
The diluted earnings per share calculation for both the fiscal six months ended July 3, 2011 and July 4, 2010 included the dilutive effect of convertible debt that was offset by the related reduction in interest expense.
The diluted earnings per share calculation for the fiscal six months ended July 3, 2011 and July 4, 2010 excluded 52 million and 68 million shares related to stock options, as the exercise price of these options was greater than their average market value, which would result in an anti-dilutive effect on diluted earnings per share.