Earnings Per Share

9 Months Ended

Sep. 30, 2016

EARNINGS PER SHARE

We calculate basic earnings per share by dividing net income by the weighted average number of common shares outstanding, excluding restricted shares. We calculate diluted earnings per share by dividing net income by the weighted average number of common shares outstanding plus the dilutive effect of outstanding share-based awards, including stock options and restricted stock awards. Antidilutive common stock equivalents excluded from the diluted earnings per share calculation are not material. The following table shows the computation of basic and diluted earnings per share:



	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions, except per share data)	2016		2015		2016		2015
Net income	$	1,259	$	1,315	$	3,751	$	3,546

Basic weighted average shares outstanding	740		788		758		803
Dilutive effect of share-based awards	4		7		4		8
Diluted weighted average shares outstanding	744		795		762		811

Basic earnings per share	$	1.70	$	1.67	$	4.95	$	4.42
Diluted earnings per share	$	1.69	$	1.65	$	4.92	$	4.37