Earnings per share

9 Months Ended

Sep. 30, 2017

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 September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Income (Numerator):
Net income for basic and diluted EPS	$	2,021	$	2,017	$	6,243	$	5,787

Shares (Denominator):
Weighted-average shares for basic EPS	728		747		733		752
Effect of dilutive securities	5		6		5		6
Weighted-average shares for diluted EPS	733		753		738		758

Basic EPS	$	2.78	$	2.70	$	8.52	$	7.70
Diluted EPS	$	2.76	$	2.68	$	8.46	$	7.63

For the three and nine months ended September 30, 2017 and 2016, the number of anti-dilutive employee share-based awards excluded from the computation of diluted EPS was not significant.