The following table⁽¹⁾ presents earnings per share for the three months ended December 31, 2018:



	Basic Earnings Per Share					Diluted Earnings Per Share
	(in millions, except per share data)
	Income Allocation (A)⁽²⁾		Weighted- Average Shares Outstanding (B)	Earnings per Share = (A)/(B)		Income Allocation (A)⁽²⁾		Weighted- Average Shares Outstanding (B)		Earnings per Share = (A)/(B)
Class A common stock	$	2,290	1,760	$	1.30	$	2,977	2,291	⁽³⁾	$	1.30
Class B common stock	521		245	$	2.12	$	520	245		$	2.12
Class C common stock	61		12	$	5.20	$	61	12		$	5.20
Participating securities⁽⁴⁾	105		Not presented	Not presented		$	105	Not presented		Not presented
Net income	$	2,977

The following table⁽¹⁾ presents earnings per share for the three months ended December 31, 2017:



	Basic Earnings Per Share					Diluted Earnings Per Share
	(in millions, except per share data)
	Income Allocation (A)⁽²⁾		Weighted- Average Shares Outstanding (B)	Earnings per Share = (A)/(B)		Income Allocation (A)⁽²⁾		Weighted- Average Shares Outstanding (B)		Earnings per Share = (A)/(B)
Class A common stock	$	1,945	1,811	$	1.07	$	2,522	2,353	⁽³⁾	$	1.07
Class B common stock	435		245	$	1.77	$	434	245		$	1.77
Class C common stock	54		13	$	4.30	$	54	13		$	4.29
Participating securities⁽⁴⁾	88		Not presented	Not presented		$	87	Not presented		Not presented
Net income	$	2,522


⁽¹⁾	Figures in the table may not recalculate exactly due to rounding. Earnings per share is calculated based on unrounded numbers.

⁽²⁾

Net income is allocated based on proportional ownership on an as-converted basis. The weighted-average number of shares of as-converted class B common stock used in the income allocation was 400 million and 405 million for the three months ended December 31, 2018 and 2017, respectively. The weighted-average number of shares of as-converted class C common stock used in the income allocation was 47 million and 51 million for the three months ended December 31, 2018 and 2017, respectively. The weighted-average number of shares of preferred stock included within participating securities was 32 million of as-converted UK&I preferred stock for the three months ended December 31, 2018 and 2017, and 44 million of as-converted Europe preferred stock for the three months ended December 31, 2018 and 2017.

⁽³⁾

Weighted-average diluted shares outstanding are calculated on an as-converted basis and include incremental common stock equivalents, as calculated under the treasury stock method. The computation includes approximately 3 million and 5 million common stock equivalents for the three months ended December 31, 2018 and 2017, respectively, because their effect would be dilutive. The computation excludes 1 million and 2 million of common stock equivalents for the three months ended December 31, 2018, and 2017 respectively, because their effect would have been anti-dilutive.

⁽⁴⁾

Participating securities include preferred stock outstanding and unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents, such as the Company’s UK&I and Europe preferred stock, restricted stock awards, restricted stock units and earned performance-based shares. Participating securities’ income is allocated based on the weighted-average number of shares of as-converted stock.