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EARNINGS PER SHARE
 12 Months Ended
May 31, 2021
Earnings Per Share [Abstract]  
EARNINGS PER SHARE

16.

EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income for the period by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income for the period by the weighted‑average number of common shares outstanding during the period, plus the dilutive effect of outstanding restricted stock-based awards, stock options, and shares issuable under the employee stock purchase plan as applicable pursuant to the treasury stock method. The following table sets forth the computation of basic and diluted earnings per share:

 

 

 

Year Ended May 31,

 

(in millions, except per share data)

 

2021

 

 

2020

 

 

2019

 

Net income

 

$

13,746

 

 

$

10,135

 

 

$

11,083

 

Weighted average common shares outstanding

 

 

2,945

 

 

 

3,211

 

 

 

3,634

 

Dilutive effect of employee stock plans

 

 

77

 

 

 

83

 

 

 

98

 

Dilutive weighted average common shares outstanding

 

 

3,022

 

 

 

3,294

 

 

 

3,732

 

Basic earnings per share

 

$

4.67

 

 

$

3.16

 

 

$

3.05

 

Diluted earnings per share

 

$

4.55

 

 

$

3.08

 

 

$

2.97

 

Shares subject to anti-dilutive restricted stock-based awards and stock options excluded from calculation(1)

 

 

36

 

 

 

56

 

 

 

71

 

 

(1)

These weighted shares relate to anti-dilutive restricted stock-based awards and stock options, both of which were service-based, as calculated using the treasury stock method and contingently issuable shares, substantially all of which were related to PSO agreements. Such shares could be dilutive in the future. See Note 13 for information regarding the exercise prices of our outstanding, unexercised stock options.