Earnings Per Share

9 Months Ended

Sep. 30, 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				Nine Months Ended
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
	(in thousands, except per share data)
Basic earnings per share:
Net income	$	1,677,422	$	1,398,242	$	4,470,152	$	4,436,640
Shares used in computation:
Weighted-average shares of common stock outstanding	441,537		444,878		443,540		444,529
Basic earnings per share	$	3.80	$	3.14	$	10.08	$	9.98

Diluted earnings per share:
Net income	$	1,677,422	$	1,398,242	$	4,470,152	$	4,436,640
Shares used in computation:
Weighted-average shares of common stock outstanding	441,537		444,878		443,540		444,529
Employee stock options	8,474		5,466		7,779		6,639
Weighted-average number of shares	450,011		450,344		451,319		451,168
Diluted earnings per share	$	3.73	$	3.10	$	9.90	$	9.83

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 shares of common stock excluded from the diluted calculation:

Three Months Ended

Nine Months Ended

September 30,
2023

September 30,
2022

September 30,
2023

September 30,
2022

(in thousands)

Employee stock options

3,147

8,536

4,447

6,487