EARNINGS PER SHARE

The following is a reconciliation of basic net earnings per share to diluted net earnings per share for the fiscal third quarters ended October 1, 2017 and October 2, 2016:



	Fiscal Third Quarters Ended
(Shares in Millions)	October 1, 2017			October 2, 2016
Basic net earnings per share	$	1.40		1.56
Average shares outstanding — basic	2,684.6			2,731.6
Potential shares exercisable under stock option plans	139.3			140.8
Less: shares which could be repurchased under treasury stock method	(87.2		)	(88.4	)
Convertible debt shares	1.0			1.4
Average shares outstanding — diluted	2,737.7			2,785.4
Diluted net earnings per share	$	1.37		1.53

The diluted net earnings per share calculation for both the fiscal third quarters ended October 1, 2017 and October 2, 2016 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 both the fiscal third quarters ended October 1, 2017 and October 2, 2016 included all shares related to stock options, as there were no options or other instruments which were anti-dilutive.

The following is a reconciliation of basic net earnings per share to diluted net earnings per share for the fiscal nine months ended October 1, 2017 and October 2, 2016:



	Fiscal Nine Months Ended
(Shares in Millions)	October 1, 2017			October 2, 2016
Basic net earnings per share	$	4.46		4.64
Average shares outstanding — basic	2,694.4			2,744.9
Potential shares exercisable under stock option plans	141.2			144.0
Less: shares which could be repurchased under treasury stock method	(90.2		)	(93.7	)
Convertible debt shares	1.0			1.4
Average shares outstanding — diluted	2,746.4			2,796.6
Diluted net earnings per share	$	4.37		4.55

The diluted net earnings per share calculation for both the fiscal nine months ended October 1, 2017 and October 2, 2016 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 both the fiscal nine months ended October 1, 2017 and October 2, 2016 included all shares related to stock options, as there were no options or other instruments which were anti-dilutive.