Net Income Per Share

9 Months Ended

Sep. 30, 2019

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 for the period. The dilutive effect of outstanding 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 sets forth the computation of basic and diluted net income per share for the periods indicated:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
	(In millions, except per share amounts)
Numerator:
Net income	$	462	$	436	$	1,952	$	1,473
Denominator:
Weighted average shares of common stock - basic	1,175		1,181		1,174		1,187
Dilutive effect of equity incentive awards	13		18		14		19
Weighted average shares of common stock - diluted	1,188		1,199		1,188		1,206
Net income per share:
Basic	$	0.39	$	0.37	$	1.66	$	1.24
Diluted	$	0.39	$	0.36	$	1.64	$	1.22
Common stock equivalents excluded from income per diluted share because their effect would have been anti-dilutive	1		—		2		—