Net Income Per Share

9 Months Ended

Sep. 30, 2020

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 during the period. The dilutive effect of outstanding options and 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 three and nine months ended September 30, 2020 and 2019 (in millions, except per share amounts):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Numerator:
Income from continuing operations	$	621	$	210	$	1,761	$	1,047
Income from discontinued operations, net of income taxes	43		100		3,061		183
Net income	$	664	$	310	$	4,822	$	1,230
Denominator:
Weighted average shares of common stock - basic	696		830		717		863
Dilutive effect of equity incentive awards	12		7		8		7
Weighted average shares of common stock - diluted	708		837		725		870


Income per share - basic:
Continuing operations	$	0.89	$	0.25	$	2.46	$	1.21
Discontinued operations	0.06		0.12		4.26		0.22
Net income per share - basic	$	0.95	$	0.37	$	6.72	$	1.43
Income per share - diluted:
Continuing operations	$	0.88	$	0.25	$	2.43	$	1.20
Discontinued operations	0.06		0.12		4.22		0.22
Net income per share - diluted	$	0.94	$	0.37	$	6.65	$	1.42
Common stock equivalents excluded from income per diluted share because their effect would have been anti-dilutive	—		6		1		19