INTC » Topics » Note 4: Earnings Per Share

These excerpts taken from the INTC 10-K filed Feb 23, 2009.
Note 21: Earnings Per Share
 
We computed our basic and diluted earnings per common share as follows:
 
                         
(In Millions, Except Per Share Amounts)
  2008     2007     2006  
Net income
  $ 5,292     $ 6,976     $ 5,044  
                         
Weighted average common shares outstanding—basic
    5,663       5,816       5,797  
Dilutive effect of employee equity incentive plans
    34       69       32  
Dilutive effect of convertible debt
    51       51       51  
                         
Weighted average common shares outstanding—diluted
    5,748       5,936       5,880  
                         
Basic earnings per common share
  $ 0.93     $ 1.20     $ 0.87  
                         
Diluted earnings per common share
  $ 0.92     $ 1.18     $ 0.86  
                         
 
We computed our basic earnings per common share using net income and the weighted average number of common shares outstanding during the period. We computed diluted earnings per common share using net income and the weighted average number of common shares outstanding plus potentially dilutive common shares outstanding during the period. Potentially dilutive common shares are determined by applying the treasury stock method to the assumed exercise of outstanding stock options, the assumed vesting of outstanding restricted stock units, and the assumed issuance of common stock under the stock purchase plan, and applying the if-converted method for the assumed conversion of debt.
 
For 2008, we excluded 484 million outstanding weighted average stock options (417 million in 2007 and 693 million in 2006) from the calculation of diluted earnings per common share because the exercise prices of these stock options were greater than or equal to the average market value of the common shares. These options could be included in the calculation in the future if the average market value of the common shares increases and is greater than the exercise price of these options.
 
Note 21:
Earnings Per Share



 



We computed our basic and diluted
earnings per common share as follows:



 




















































































































































































































                         


(In Millions, Except Per Share Amounts)


 

2008

 

 

2007

 

 

2006

 


Net income


 

$

5,292

 

 

$

6,976

 

 

$

5,044

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Weighted average common shares outstanding—basic


 

 

5,663

 

 

 

5,816

 

 

 

5,797

 


Dilutive effect of employee equity incentive plans


 

 

34

 

 

 

69

 

 

 

32

 


Dilutive effect of convertible debt


 

 

51

 

 

 

51

 

 

 

51

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Weighted average common shares outstanding—diluted


 

 

5,748

 

 

 

5,936

 

 

 

5,880

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Basic earnings per common share


 

$

0.93

 

 

$

1.20

 

 

$

0.87

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Diluted earnings per common share


 

$

0.92

 

 

$

1.18

 

 

$

0.86

 

 

 

 

 

 

 

 

 

 

 

 

 

 







 



We computed our basic earnings per
common share using net income and the weighted average number of
common shares outstanding during the period. We computed diluted
earnings per common share using net income and the weighted
average number of common shares outstanding plus potentially
dilutive common shares outstanding during the period.
Potentially dilutive common shares are determined by applying
the treasury stock method to the assumed exercise of outstanding
stock options, the assumed vesting of outstanding restricted
stock units, and the assumed issuance of common stock under the
stock purchase plan, and applying the if-converted method for
the assumed conversion of debt.



 



For 2008, we excluded
484 million outstanding weighted average stock options
(417 million in 2007 and 693 million in
2006) from the calculation of diluted earnings per common
share because the exercise prices of these stock options were
greater than or equal to the average market value of the common
shares. These options could be included in the calculation in
the future if the average market value of the common shares
increases and is greater than the exercise price of these
options.



 




These excerpts taken from the INTC 10-K filed Feb 20, 2008.
Note 4: Earnings Per Share
 
We computed our basic and diluted earnings per common share as follows:
 
                   
(In Millions, Except Per Share Amounts)
  2007   2006   2005
Net income
  $ 6,976   $ 5,044   $ 8,664
                   
Weighted average common shares outstanding—basic
    5,816     5,797     6,106
Dilutive effect of employee equity incentive plans
    69     32     70
Dilutive effect of convertible debt
    51     51     2
                   
Weighted average common shares outstanding—diluted
    5,936     5,880     6,178
                   
Basic earnings per common share
  $ 1.20   $ 0.87   $ 1.42
                   
Diluted earnings per common share
  $ 1.18   $ 0.86   $ 1.40
                   


64


Table of Contents

 
INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
 
 
We computed our basic earnings per common share using net income and the weighted average number of common shares outstanding during the period. We computed diluted earnings per common share using net income and the weighted average number of common shares outstanding plus potentially dilutive common shares outstanding during the period. Potentially dilutive common shares include the assumed exercise of outstanding stock options, assumed vesting of outstanding restricted stock units, assumed issuance of stock under the stock purchase plan using the treasury stock method, and the assumed conversion of debt using the if-converted method.
 
For 2007, we excluded 417 million outstanding weighted average stock options (693 million in 2006 and 372 million in 2005) from the calculation of diluted earnings per common share because the exercise prices of these stock options were greater than or equal to the average market value of the common shares. These options could be included in the calculation in the future if the average market value of the common shares increases and is greater than the exercise price of these options.
 
Note 4:
Earnings Per Share



 



We computed our basic and diluted earnings per common share as
follows:


 










































































































































































                   


(In Millions, Except Per Share Amounts)


 

2007

 

2006

 

2005


Net income


 

$

6,976

 

$

5,044

 

$

8,664

 

 

 

 

 

 

 

 

 

 


Weighted average common shares outstanding—basic


 

 

5,816

 

 

5,797

 

 

6,106


Dilutive effect of employee equity incentive plans


 

 

69

 

 

32

 

 

70


Dilutive effect of convertible debt


 

 

51

 

 

51

 

 

2

 

 

 

 

 

 

 

 

 

 


Weighted average common shares outstanding—diluted


 

 

5,936

 

 

5,880

 

 

6,178

 

 

 

 

 

 

 

 

 

 


Basic earnings per common share


 

$

1.20

 

$

0.87

 

$

1.42

 

 

 

 

 

 

 

 

 

 


Diluted earnings per common share


 

$

1.18

 

$

0.86

 

$

1.40

 

 

 

 

 

 

 

 

 

 










64





Table of Contents





 




INTEL
CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)



 

 



We computed our basic earnings per common share using net income
and the weighted average number of common shares outstanding
during the period. We computed diluted earnings per common share
using net income and the weighted average number of common
shares outstanding plus potentially dilutive common shares
outstanding during the period. Potentially dilutive common
shares include the assumed exercise of outstanding stock
options, assumed vesting of outstanding restricted stock units,
assumed issuance of stock under the stock purchase plan using
the treasury stock method, and the assumed conversion of debt
using the if-converted method.


 



For 2007, we excluded 417 million outstanding weighted
average stock options (693 million in 2006 and
372 million in 2005) from the calculation of diluted
earnings per common share because the exercise prices of these
stock options were greater than or equal to the average market
value of the common shares. These options could be included in
the calculation in the future if the average market value of the
common shares increases and is greater than the exercise price
of these options.


 




This excerpt taken from the INTC 10-K filed Feb 26, 2007.
Note 4: Earnings Per Share
 
The computation of the company’s basic and diluted earnings per common share is as follows:
 
                         
(In Millions, Except Per Share Amounts)
  2006     2005     2004  
 
Net income
  $ 5,044     $ 8,664     $ 7,516  
Weighted average common shares outstanding
    5,797       6,106       6,400  
Dilutive effect of employee equity incentive plans
    32       70       94  
Dilutive effect of convertible debt
    51       2        
                         
Weighted average common shares outstanding, assuming dilution
    5,880       6,178       6,494  
                         
Basic earnings per common share
  $ 0.87     $ 1.42     $ 1.17  
                         
Diluted earnings per common share
  $ 0.86     $ 1.40     $ 1.16  
                         
 
Basic earnings per common share is computed using net income and the weighted average number of common shares outstanding during the period. Diluted earnings per common share is computed using net income and the weighted average number of common shares outstanding, assuming dilution. Weighted average common shares outstanding, assuming dilution includes potentially dilutive common shares outstanding during the period. Potentially dilutive common shares include the assumed exercise of stock options, assumed vesting of restricted stock units, and assumed issuance of stock under the stock purchase plan using the treasury stock method, as well as the assumed conversion of debt using the if-converted method.


65


Table of Contents

 
INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
 

 
For 2006, 693 million of the company’s outstanding stock options (372 million in 2005 and 357 million in 2004) were excluded from the calculation of diluted earnings per common share because the exercise prices of these stock options were greater than or equal to the average market value of the common shares. These options could be included in the calculation in the future if the average market value of the common shares increases and is greater than the exercise price of these options.
 
This excerpt taken from the INTC 10-Q filed Aug 8, 2005.

Note 4:   Earnings Per Share

 

The shares used in the computation of the company’s basic and diluted earnings per common share were as follows:

 

     Three Months Ended

   Six Months Ended

(In Millions)


     July 2,  
2005


   June 26,
2004


     July 2,  
2005


   June 26,
2004


Weighted average common shares outstanding

   6,144    6,449    6,177    6,464

Dilutive effect of employee stock options

   71    109    67    127
    
  
  
  

Weighted average common shares outstanding, assuming dilution

   6,215    6,558    6,244    6,591
    
  
  
  

 

Weighted average common shares outstanding, assuming dilution, includes the incremental effect of shares that would be issued upon the assumed exercise of stock options. For the second quarter of 2005, approximately 348 million of the company’s stock options (415 million for the first half of 2005) were excluded from the calculation of diluted earnings per share because the exercise prices of the stock options were greater than or equal to the average market value of the common shares, and therefore their inclusion would have been anti-dilutive. These options could be dilutive in the future if the average market value increases and is greater than the exercise price of these options. For the second quarter of 2004, 238 million of the company’s stock options outstanding (218 million for the first half of 2004) were excluded from the calculation.

 

This excerpt taken from the INTC 10-Q filed May 11, 2005.

Note 4:  Earnings Per Share

 

The shares used in the computation of the company’s basic and diluted earnings per common share are as follows:

 

     Three Months Ended

(In Millions)


     April 2,  
2005


   March 27,
2004


Weighted average common shares outstanding

   6,211    6,480

Dilutive effect of employee stock options

   62    144
    
  

Weighted average common shares outstanding, assuming dilution

   6,273    6,624
    
  

 

Weighted average common shares outstanding, assuming dilution, includes the incremental effect of shares that would be issued upon the assumed exercise of stock options. For the first quarter of 2005, approximately 481 million of the company’s stock options were excluded from the calculation of diluted earnings per share because the exercise prices of the stock options were greater than or equal to the average price of the common shares, and therefore their inclusion would have been anti-dilutive (197 million for the first quarter of 2004). These options could be dilutive in the future if the average share price increases and is greater than the exercise price of these options.

 

This excerpt taken from the INTC 10-K filed Feb 22, 2005.

Note 3:  Earnings Per Share

 

The shares used in the computation of the company’s basic and diluted earnings per common share were as follows:

 

(In Millions)


   2004

   2003

   2002

Weighted average common shares outstanding

   6,400    6,527    6,651

Dilutive effect of employee stock options

   94    94    108
    
  
  

Weighted average common shares outstanding, assuming dilution

   6,494    6,621    6,759
    
  
  

 

56


Table of Contents

INTEL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

 

 

Weighted average common shares outstanding, assuming dilution, include the incremental shares that would be issued upon the assumed exercise of stock options. For 2004, approximately 357 million of the company’s stock options were excluded from the calculation of diluted earnings per share because the exercise prices of the stock options were greater than or equal to the average price of the common shares, and therefore their inclusion would have been anti-dilutive (418 million in 2003 and 387 million in 2002). These options could be dilutive in the future if the average share price increases and is greater than the exercise price of these options.

 

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