Computation of Basic/Diluted Earnings Per Common Share

3 Months Ended

Mar. 31, 2019

Computation of Basic/Diluted Earnings Per Common Share

The following table sets forth the computation of basic and diluted earnings per common share (amounts in millions, except per share data):



	For the Three Months Ended March 31,
	2019		2018
Numerator:
Consolidated net income	$	447	$	500
Denominator:
Denominator for basic earnings per common share—weighted-average common shares outstanding	764		759
Effect of potential dilutive common shares under the treasury stock method—employee stock options and awards	6		11
Denominator for basic earnings per common share—weighted-average dilutive common shares outstanding	770		770

Basic earnings per common share	$	0.58	$	0.66
Diluted earnings per common share	$	0.58	$	0.65

The vesting of certain of our employee-related restricted stock units and options is contingent upon the satisfaction of pre-defined performance measures. The shares underlying these equity awards are included in the weighted-average dilutive common shares only if the performance measures are met as of the end of the reporting period. Approximately 3 million and 6 million shares are not included in the computation of diluted earnings per share for the three months ended March 31, 2019 and 2018, respectively, as their underlying performance measures had not yet been met.

Potential common shares are not included in the denominator of the diluted earnings per common share calculation when the inclusion of such shares would be anti-dilutive. Therefore, approximately 6 million and 2 million options to purchase shares of common stock were not included in the calculation of diluted earnings per common share for the three months ended March 31, 2019 and 2018, respectively, as the effect of their inclusion would be anti-dilutive.