Earnings per share

9 Months Ended

Sep. 30, 2016

The computation of basic earnings per share (EPS) is based on the weighted-average number of our common shares outstanding. The computation of diluted EPS is based on the weighted-average number of our common shares outstanding and dilutive potential common shares, which include primarily shares that may be issued under our stock option, restricted stock and performance unit award programs, as determined using the treasury stock method (collectively, dilutive securities).

The computations for basic and diluted EPS were as follows (in millions, except per share data):



	Three months ended				Nine months ended
	September 30,				September 30,
	2016		2015		2016		2015
Income (Numerator):
Net income for basic and diluted EPS	$	2,017	$	1,863	$	5,787	$	5,139

Shares (Denominator):
Weighted-average shares for basic EPS	747		757		752		760
Effect of dilutive securities	6		7		6		7
Weighted-average shares for diluted EPS	753		764		758		767

Basic EPS	$	2.70	$	2.46	$	7.70	$	6.76
Diluted EPS	$	2.68	$	2.44	$	7.63	$	6.70

For the three and nine months ended September 30, 2016 and 2015, the number of anti-dilutive employee share-based awards excluded from the computation of diluted EPS was not significant.