Earnings Per Share

9 Months Ended

Sep. 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				Nine Months Ended
	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
	(in thousands, except per share data)
Basic earnings per share:
Net income	$	789,976	$	665,244	$	2,219,239	$	1,279,946
Shares used in computation:
Weighted-average common shares outstanding	441,526		438,090		440,486		437,547
Basic earnings per share	$	1.79	$	1.52	$	5.04	$	2.93

Diluted earnings per share:
Net income	$	789,976	$	665,244	$	2,219,239	$	1,279,946
Shares used in computation:
Weighted-average common shares outstanding	441,526		438,090		440,486		437,547
Employee stock options	13,562		13,462		13,360		14,349
Weighted-average number of shares	455,088		451,552		453,846		451,896
Diluted earnings per share	$	1.74	$	1.47	$	4.89	$	2.83

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, 2020	September 30, 2019	September 30, 2020	September 30, 2019
	(in thousands)
Employee stock options	124	2,402	560	1,268