Net Income Per Share

9 Months Ended

Sep. 30, 2021

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 for the periods indicated (in millions, except per share amounts):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Numerator:
Income from continuing operations	$	283	$	605	$	1,145	$	1,715
Income (loss) from discontinued operations, net of income taxes	(19)		59		10,494		3,107
Net income	$	264	$	664	$	11,639	$	4,822
Denominator:
Weighted average shares of common stock - basic	647		696		667		717
Dilutive effect of equity incentive awards	11		12		11		8
Weighted average shares of common stock - diluted	658		708		678		725


Income (loss) per share - basic:
Continuing operations	$	0.44	$	0.87	$	1.72	$	2.39
Discontinued operations	(0.03)		0.08		15.72		4.33
Net income per share - basic	$	0.41	$	0.95	$	17.44	$	6.72
Income (loss) per share - diluted:
Continuing operations	$	0.43	$	0.86	$	1.69	$	2.37
Discontinued operations	(0.03)		0.08		15.47		4.28
Net income per share - diluted	$	0.40	$	0.94	$	17.16	$	6.65
Common stock equivalents excluded from income per diluted share because their effect would have been anti-dilutive	—		—		9		1