Earnings Per Share

3 Months Ended

Mar. 31, 2023

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
	March 31, 2023		March 31, 2022
	(in thousands, except per share data)
Basic earnings per share:
Net income	$	1,305,120	$	1,597,447
Shares used in computation:
Weighted-average shares of common stock outstanding	445,244		444,146
Basic earnings per share	$	2.93	$	3.60

Diluted earnings per share:
Net income	$	1,305,120	$	1,597,447
Shares used in computation:
Weighted-average shares of common stock outstanding	445,244		444,146
Employee stock options	7,173		8,838
Weighted-average number of shares	452,417		452,984
Diluted earnings per share	$	2.88	$	3.53

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

March 31,
2023

March 31,
2022

(in thousands)

Employee stock options

5,847

2,749