Table:
| Year Ended May 31, |  |  |  |
| --- | --- | --- | --- |
| (in millions, except per share data) | 2019 | 2018 | 2017 |
| Net income | $11,083 | $3,587 | $9,452 |
| Weighted average common shares outstanding | 3,634 | 4,121 | 4,115 |
| Dilutive effect of employee stock plans | 98 | 117 | 102 |
| Dilutive weighted average common shares outstanding | 3,732 | 4,238 | 4,217 |
| Basic earnings per share | $3.05 | $0.87 | $2.30 |
| Diluted earnings per share | $2.97 | $0.85 | $2.24 |
| Shares subject to anti-dilutive restricted stock-based awards and stock options excluded from calculation (1) | 71 | 64 | 74 |
Paragraphs:
Basic earnings per share is computed by dividing net income for the period by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income for the period by the weighted-average number of common shares outstanding during the period, plus the dilutive effect of outstanding restricted stock-based awards, stock options, and shares issuable under the employee stock purchase plan using the treasury stock method. The following table sets forth the computation of basic and diluted earnings per share:
(1) These weighted shares relate to anti-dilutive restricted stock-based awards and stock options as calculated using the treasury stock method and contingently issuable shares under PSO and PSU agreements. Such shares could be dilutive in the future. See Note 13 for information regarding the exercise prices of our outstanding, unexercised stock options.
Question:
How is basic earnings per share calculated?
Answer: Basic earnings per share is computed by dividing net income for the period by the weighted-average number of common shares outstanding during the period.