Earnings per share

3 Months Ended

Mar. 31, 2018

The computation of basic earnings per share (EPS) is based on the weighted-average number of our common shares outstanding. The computation of diluted EPS is based on the weighted-average number of our common shares outstanding and dilutive potential common shares, which include primarily shares that may be issued under our stock option, restricted stock and performance unit award programs, as determined by using the treasury stock method (collectively, dilutive securities).

The computations for basic and diluted EPS were as follows (in millions, except per-share data):



	Three months ended March 31,
	2018		2017
Income (Numerator):
Net income for basic and diluted EPS	$	2,311	$	2,071

Shares (Denominator):
Weighted-average shares for basic EPS	707		737
Effect of dilutive securities	4		4
Weighted-average shares for diluted EPS	711		741

Basic EPS	$	3.27	$	2.81
Diluted EPS	$	3.25	$	2.79

The decrease in weighted-average shares during three months ended March 31, 2018 compared to the prior period, was due to share repurchases. See Note 11, Stockholders’ equity. For the three months ended March 31, 2018 and 2017, the number of anti-dilutive employee stock-based awards excluded from the computation of diluted EPS was not significant.