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EARNINGS PER SHARE
9 Months Ended
Sep. 30, 2019
Earnings Per Share [Abstract]  
EARNINGS PER SHARE EARNINGS PER SHARE
The numerator for both basic and diluted earnings per share (EPS) is net income. The denominator for basic EPS is the weighted-average number of shares outstanding during the period. The dilutive effect of outstanding stock options, restricted stock units (RSUs) and performance share units (PSUs) is reflected in the denominator for diluted EPS using the treasury stock method.
The following table is a reconciliation of basic shares to diluted shares.
Three months ended
September 30,
Nine months ended
September 30,
(in millions)2019201820192018
Basic shares511  534  510  536  
Effect of dilutive securities 12  10  12  
Diluted shares520  546  520  548  
The effect of dilutive securities included unexercised stock options, unvested RSUs and contingently issuable shares related to granted PSUs. The computation of diluted EPS excluded 4 million equity awards each for the three and nine months ended September 30, 2019, respectively, and 3 million equity awards each for the three and nine months ended September 30, 2018, respectively, because their inclusion would have had an anti-dilutive effect on diluted EPS.