Net Income Per Share

12 Months Ended

Dec. 31, 2020

Basic net income per share is computed by dividing net income for the period by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing net income for the period by the weighted average number of shares of common stock and potentially dilutive common stock outstanding during the period. The dilutive effect of outstanding options and equity incentive awards is reflected in diluted net income per share by application of the treasury stock method. The calculation of diluted net income per share excludes all anti-dilutive common shares.

The following table presents the computation of basic and diluted net income per share (in millions, except per share amounts):


	Year Ended December 31,
	2020		2019		2018
Numerator:
Income from continuing operations	$	2,542	$	1,516	$	2,128
Income from discontinued operations, net of income taxes	3,125		270		402
Net income	$	5,667	$	1,786	$	2,530
Denominator:
Weighted average shares of common stock - basic	710		849		980
Dilutive effect of equity incentive awards	8		7		11
Weighted average shares of common stock - diluted	718		856		991
Income per share - basic:
Continuing operations	$	3.58	$	1.79	$	2.17
Discontinued operations	4.40		0.31		0.41
Net income per share - basic	$	7.98	$	2.10	$	2.58
Income per share - diluted:
Continuing operations	$	3.54	$	1.77	$	2.15
Discontinued operations	4.35		0.32		0.40
Net income per share - diluted	$	7.89	$	2.09	$	2.55
Common stock equivalents excluded from income per diluted share because their effect would have been anti-dilutive	5		18		12