Earnings Per Share

12 Months Ended

Dec. 31, 2018

Earnings Per Share [Abstract]

Earnings Per Share

33. EARNINGS PER SHARE

Net income and weighted average number of common stocks used in the calculation of earnings per share were as follows:

Net Income

	Year Ended December 31
	2016			2017		2018
	NT$			NT$		NT$
	(In Millions)
Net income used to compute the basic earnings    per share
Net income attributable to the parent	$	40,485		$	38,988	$	37,557
Assumed conversion of all dilutive potential    common stocks
Employee stock options, employee compensation    of subsidiaries		(1	)		—		(6	)
Net income used to compute the diluted earnings    per share	$	40,484		$	38,988	$	37,551

Weighted Average Number of Common Stocks

(Millions Shares)

	Year Ended December 31
	2016		2017		2018
Weighted average number of common stocks used    to compute the basic earnings per share		7,757		7,757		7,757
Assumed conversion of all dilutive potential    common stocks
Employee compensation		12		11		9
Weighted average number of common stocks used    to compute the diluted earnings per share		7,769		7,768		7,766

Because Chunghwa may settle the employee compensation in shares or cash, Chunghwa shall presume that it will be settled in shares and takes those shares into consideration when calculating the weighted average number of outstanding shares used in the calculation of diluted EPS if the shares have a dilutive effect.  The dilutive effect of the shares needs to be considered until the approval of the number of shares to be distributed to employees as compensation in the following year.