v2.4.0.6
Earnings Per Share
 9 Months Ended
Mar. 30, 2012
Earnings Per Share  
Earnings Per Share

12.  Earnings Per Share

 

Basic earnings per share is computed by dividing income available to shareholders by the weighted-average number of shares outstanding during the period. Diluted earnings per share is computed by dividing income available to shareholders by the weighted-average number of shares outstanding during the period and the number of additional shares that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding options, shares to be purchased under the ESPP, and unvested restricted stock units. The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method. Under the treasury stock method, an increase in fair market value of the Company’s share price can result in a greater dilutive effect from potentially dilutive securities. The following table sets forth the computation of basic and diluted net income per share:

 

 

 

For the Three Months Ended

 

For the Nine Months Ended

 

(Dollars in millions, except per share data)

 

March 30,
2012

 

April 1,
2011

 

March 30,
2012

 

April 1,
2011

 

Numerator:

 

 

 

 

 

 

 

 

 

Net income

 

$

1,146

 

$

93

 

$

1,849

 

$

392

 

 

 

 

 

 

 

 

 

 

 

Number of shares used in per share calculations:

 

 

 

 

 

 

 

 

 

Total shares for purpose of calculating basic net income per share

 

446

 

437

 

431

 

459

 

 

 

 

 

 

 

 

 

 

 

Weighted-average effect of dilutive securities:

 

 

 

 

 

 

 

 

 

Employee equity award plans

 

17

 

16

 

14

 

16

 

Dilutive potential shares:

 

17

 

16

 

14

 

16

 

Total shares for purpose of calculating diluted net income per share

 

463

 

453

 

445

 

475

 

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

 

Basic net income per share

 

$

2.57

 

$

0.21

 

$

4.29

 

$

0.85

 

Diluted net income per share

 

$

2.48

 

$

0.21

 

$

4.16

 

$

0.83

 

 

The following potential shares were excluded from the computation of diluted net income per share, as their effect would have been anti-dilutive:

 

 

 

For the Three Months Ended

 

For the Nine Months Ended

 

(In millions)

 

March 30,
2012

 

April 1,
2011

 

March 30,
2012

 

April 1,
2011

 

Employee equity award plans

 

—

 

15

 

9

 

18