Earnings Per Share

9 Months Ended

Sep. 30, 2019

Basic earnings per share is computed using the weighted-average number of outstanding shares of common stock during the period. Diluted earnings per share is computed using the weighted-average number of outstanding shares of common stock and, when dilutive, potential common shares outstanding during the period. Potential common shares consist of incremental shares issuable upon the assumed exercise of stock options. The computation of earnings per share is as follows:



	Three Months Ended				Nine Months Ended
	September 30, 2019		September 30, 2018		September 30, 2019		September 30, 2018
	(in thousands, except per share data)
Basic earnings per share:
Net income	$	665,244	$	402,835	$	1,279,946	$	1,077,308
Shares used in computation:
Weighted-average common shares outstanding	438,090		435,809		437,547		435,033
Basic earnings per share	$	1.52	$	0.92	$	2.93	$	2.48

Diluted earnings per share:
Net income	$	665,244	$	402,835	$	1,279,946	$	1,077,308
Shares used in computation:
Weighted-average common shares outstanding	438,090		435,809		437,547		435,033
Employee stock options	13,462		16,110		14,349		16,250
Weighted-average number of shares	451,552		451,919		451,896		451,283
Diluted earnings per share	$	1.47	$	0.89	$	2.83	$	2.39

Employee stock options with exercise prices greater than the average market price of the common stock were excluded from the diluted calculation as their inclusion would have been anti-dilutive. The following table summarizes the potential common shares excluded from the diluted calculation:



	Three Months Ended		Nine Months Ended
	September 30, 2019	September 30, 2018	September 30, 2019	September 30, 2018
	(in thousands)
Employee stock options	2,402	176	1,268	96