Earnings Per Share

3 Months Ended

Mar. 31, 2020

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
	March 31, 2020		March 31, 2019
	(in thousands, except per share data)
Basic earnings per share:
Net income	$	709,067	$	344,052
Shares used in computation:
Weighted-average common shares outstanding	439,352		436,947
Basic earnings per share	$	1.61	$	0.79

Diluted earnings per share:
Net income	$	709,067	$	344,052
Shares used in computation:
Weighted-average common shares outstanding	439,352		436,947
Employee stock options	13,142		14,975
Weighted-average number of shares	452,494		451,922
Diluted earnings per share	$	1.57	$	0.76

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
	March 31, 2020	March 31, 2019
	(in thousands)
Employee stock options	1,516	652