Earnings Per Share

6 Months Ended

Jun. 30, 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				Six Months Ended
	June 30, 2020		June 30, 2019		June 30, 2020		June 30, 2019
	(in thousands, except per share data)
Basic earnings per share:
Net income	$	720,196	$	270,650	$	1,429,263	$	614,702
Shares used in computation:
Weighted-average common shares outstanding	440,569		437,587		439,961		437,271
Basic earnings per share	$	1.63	$	0.62	$	3.25	$	1.41

Diluted earnings per share:
Net income	$	720,196	$	270,650	$	1,429,263	$	614,702
Shares used in computation:
Weighted-average common shares outstanding	440,569		437,587		439,961		437,271
Employee stock options	13,376		14,608		13,259		14,792
Weighted-average number of shares	453,945		452,195		453,220		452,063
Diluted earnings per share	$	1.59	$	0.60	$	3.15	$	1.36

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		Six Months Ended
	June 30, 2020	June 30, 2019	June 30, 2020	June 30, 2019
	(in thousands)
Employee stock options	39	750	777	701