Earnings Per Share

12 Months Ended

Dec. 31, 2020

Earnings per Share

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:


	Year ended December 31,
	2020		2019		2018
	(in thousands, except per share data)
Basic earnings per share:
Net income	$	2,761,395	$	1,866,916	$	1,211,242
Shares used in computation:
Weighted-average common shares outstanding	440,922		437,799		435,374
Basic earnings per share	$	6.26	$	4.26	$	2.78
Diluted earnings per share:
Net income	$	2,761,395	$	1,866,916	$	1,211,242
Shares used in computation:
Weighted-average common shares outstanding	440,922		437,799		435,374
Employee stock options	13,286		13,966		15,870
Weighted-average number of shares	454,208		451,765		451,244
Diluted earnings per share	$	6.08	$	4.13	$	2.68

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:


	Year ended December 31,
	2020	2019	2018
	(in thousands)
Employee stock options	484	1,588	330