Earnings Per Share

9 Months Ended

Sep. 30, 2021

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 outstanding shares of common stock during the period. Potential shares of common stock 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, 2021		September 30, 2020		September 30, 2021		September 30, 2020
	(in thousands, except per share data)
Basic earnings per share:
Net income	$	1,449,071	$	789,976	$	4,508,799	$	2,219,239
Shares used in computation:
Weighted-average shares of common stock outstanding	442,778		441,526		443,052		440,486
Basic earnings per share	$	3.27	$	1.79	$	10.18	$	5.04

Diluted earnings per share:
Net income	$	1,449,071	$	789,976	$	4,508,799	$	2,219,239
Shares used in computation:
Weighted-average shares of common stock outstanding	442,778		441,526		443,052		440,486
Employee stock options	12,147		13,562		12,178		13,360
Weighted-average number of shares	454,925		455,088		455,230		453,846
Diluted earnings per share	$	3.19	$	1.74	$	9.90	$	4.89

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 shares of common stock excluded from the diluted calculation:

Three Months Ended

Nine Months Ended

September 30,
2021

September 30,
2020

September 30,
2021

September 30,
2020

(in thousands)

Employee stock options

279

124

441

560