Earnings per share

12 Months Ended

Dec. 31, 2020

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 primarily include shares that may be issued under our stock option, restricted stock and performance unit award programs (collectively, dilutive securities), as determined by using the treasury stock method.

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


	Years ended December 31,
	2020		2019		2018
Income (Numerator):
Net income for basic and diluted EPS	$	7,264	$	7,842	$	8,394

Shares (Denominator):
Weighted-average shares for basic EPS	586		605		661
Effect of dilutive securities	4		4		4
Weighted-average shares for diluted EPS	590		609		665

Basic EPS	$	12.40	$	12.96	$	12.70
Diluted EPS	$	12.31	$	12.88	$	12.62

For each of the three years ended December 31, 2020, the number of antidilutive employee stock-based awards excluded from the computation of diluted EPS was not significant.