Earnings Per Share

12 Months Ended

Dec. 31, 2019

EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per share on net income (in millions, except per share information):



	2019		2018		2017
Earnings:
Net income (numerator for basic and diluted calculations)	$	870	$	716	$	1,822
Shares:
Weighted average outstanding shares (denominator for basic calculations)	62,684		63,658		64,427
Equivalent shares from outstanding stock options	1,198		1,436		1,326
Diluted shares (denominator for diluted calculations)	63,882		65,094		65,753
Earnings per share:
Basic	$	13.88	$	11.25	$	28.28
Diluted	13.62		11.00		27.71

The calculation of common equivalent shares does not include the impact of options having a strike or conversion price that exceeds the average stock price for the earnings period, as the result would be antidilutive. The calculation of common equivalent shares also excludes the impact of outstanding performance contingent shares, as the conditions necessary for their issuance have not been satisfied as of the end of the reporting period. Approximately 0.2 million, 0.1 million, and 0.2 million outstanding stock options and approximately 0.3 million, 0.4 million and 0.3 million performance contingent shares were excluded from the calculation of common equivalent shares during 2019, 2018 and 2017, respectively.