Net Income Per Common Share

9 Months Ended

Sep. 30, 2020

Basic earnings per share are computed based on the weighted average number of common shares outstanding. Diluted earnings per share are computed based on the weighted average number of common and dilutive potential common shares outstanding using the treasury stock method. The table shows calculations for basic and diluted earnings per share:


(In millions, except per share data)	Three months ended September 30,									Nine months ended September 30,
			2020			2019			2020			2019
Numerator:
Net income—basic and diluted	$	484		$	248		$	167		$	1,371
Denominator:
Basic weighted-average common shares outstanding	160.9			163.3			161.3			163.2
Effect of share-based awards:
Stock options	0.5			1.4			0.7			1.2
Nonvested shares	0.6			0.9			0.5			0.7
Diluted weighted-average shares	162.0			165.6			162.5			165.1
Earnings per share:
Basic	$	3.01		$	1.51		$	1.03		$	8.40
Diluted	$	2.99		$	1.49		$	1.03		$	8.30
Number of anti-dilutive share-based awards	1.4			—			1.4			0.4

The sources of dilution of our common shares are certain equity-based awards. See our 2019 Annual Report on Form 10-K, Item 8, Note 17, Share-Based Associate Compensation Plans, Page 176, for information about share-based awards. The above table shows the number of anti-dilutive share-based awards for the three and nine months ended September 30, 2020 and 2019. These share-based awards were not included in the computation of net income per common share (diluted) because their exercise would have anti-dilutive effects.