Net Income Per Share

12 Months Ended

Dec. 31, 2019

Basic net income per share is computed by dividing net income for the period by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing net income for the period by the weighted average number of shares of common stock and potentially dilutive common stock outstanding for the period. The dilutive effect of outstanding options and equity incentive awards is reflected in diluted net income per share by application of the treasury stock method. The calculation of diluted net income per share excludes all anti-dilutive common shares.

The following table sets forth the computation of basic and diluted net income per share for the periods indicated:



	Year Ended December 31,
	2019		2018		2017
	(In millions, except per share amounts)
Numerator:
Net income	$	2,459	$	2,057	$	1,795
Denominator:
Weighted average shares of common stock—basic	1,174		1,184		1,203
Dilutive effect of equity incentive awards	14		19		18
Weighted average shares of common stock—diluted	1,188		1,203		1,221
Net income per share:
Basic	$	2.09	$	1.74	$	1.49
Diluted	$	2.07	$	1.71	$	1.47
Common stock equivalents excluded from income per diluted share because their effect would have been anti-dilutive	2		1		2