Intel 2008 Annual Report Download - page 109

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Table of Contents
INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 21: Earnings Per Share
We computed our basic and diluted earnings per common share as follows:
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 22: Comprehensive Income
The components of total comprehensive income were as follows:
100
(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
Dilutive effect of convertible debt
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
(In Millions)
2008
2007
2006
Net income
$
5,292
$
6,976
$
5,044
Other comprehensive income (loss)
(654
)
318
Total comprehensive income
$
4,638
$
7,294
$
5,070