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Earnings Per Share
 6 Months Ended
Jul. 01, 2012
Earnings Per Share [Abstract]  
EARNINGS PER SHARE
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 1, 2012 and July 3, 2011:

 
 
Fiscal Second Quarters Ended
(Shares in Millions)
 
July 1, 2012
 
July 3, 2011
Basic net earnings per share
 
$
0.51

 
$
1.01

Average shares outstanding — basic
 
2,747.4

 
2,740.5

Potential shares exercisable under stock option plans
 
138.1

 
168.9

Less: shares which could be repurchased under treasury stock method
 
(104.1
)
 
(131.7
)
Convertible debt shares
 
3.6

 
3.6

Accelerated share repurchase program
 
13.2

 
—

Average shares outstanding — diluted
 
2,798.2

 
2,781.3

Diluted earnings per share
 
$
0.50

 
$
1.00



The diluted earnings per share calculation for both fiscal second quarters ended July 1, 2012 and July 3, 2011 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 quarter ended July 1, 2012 included the dilutive effect of 13.2 million shares related to the accelerated share repurchase program, associated with the Synthes, Inc. acquisition. See Note10 to the Consolidated Financial Statements for additional details. A $1 increase/decrease in the volume weighted average share price would impact this estimate by approximately 2.8 million shares.

The diluted earnings per share calculation for the fiscal second quarters ended July 1, 2012 and July 3, 2011, excluded 57 million and 51 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 first fiscal six months ended July 1, 2012 and July 3, 2011:

 
 
Fiscal Six Months Ended
(Shares in Millions)
 
July 1, 2012
 
July 3, 2011
Basic net earnings per share
 
$
1.94

 
$
2.28

Average shares outstanding — basic
 
2,741.7

 
2,739.6

Potential shares exercisable under stock option plans
 
138.0

 
168.8

Less: shares which could be repurchased under treasury stock method
 
(104.1
)
 
(133.9
)
Convertible debt shares
 
3.6

 
3.6

Accelerated share repurchase program
 
13.2

 
—

Average shares outstanding — diluted
 
2,792.4

 
2,778.1

Diluted earnings per share
 
$
1.91

 
$
2.25



The diluted earnings per share calculation for both the first fiscal six months ended July 1, 2012 and July 3, 2011 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 first fiscal six months ended July 1, 2012 included the dilutive effect of 13.2 million shares related to the accelerated share repurchase program, associated with the Synthes, Inc. acquisition. See Note10 to the Consolidated Financial Statements for additional details. A $1 increase/decrease in the volume weighted average share price would impact this estimate by approximately 2.8 million shares.
  
The diluted earnings per share calculation for the first fiscal six months ended July 1, 2012 and July 3, 2011, excluded 57 million and 52 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.