Earnings per Share

We compute earnings per share (EPS) of Class A and Class B common stock using the two-class method required for participating securities. We consider restricted stock awards to be participating securities because holders of such shares have non-forfeitable dividend rights in the event of our declaration of a dividend for common shares.

Undistributed earnings allocated to participating securities are subtracted from net income in determining net income attributable to common stockholders. Basic EPS is computed by dividing net income attributable to common stockholders by the weighted-average number of shares of our Class A and Class B common stock outstanding, adjusted for outstanding shares that are subject to repurchase.

For the calculation of diluted EPS, net income attributable to common stockholders for basic EPS is adjusted by the effect of dilutive securities, including awards under our equity compensation plans. In 2018 and 2017, the calculation of diluted EPS also included the effect of inducement awards under separate non-plan restricted stock unit (RSU) award agreements.

In addition, the computation of the diluted EPS of Class A common stock assumes the conversion of our Class B common stock to Class A common stock, while the diluted EPS of Class B common stock does not assume the conversion of those shares to Class A common stock. Diluted EPS attributable to common stockholders is computed by dividing the resulting net income attributable to common stockholders by the weighted-average number of fully diluted common shares outstanding.

RSUs with anti-dilutive effect were excluded from the EPS calculation and they were not material for the years ended December 31, 2019, 2018, and 2017, respectively.

Basic and diluted EPS are the same for each class of common stock because they are entitled to the same liquidation and dividend rights.

The numerators and denominators of the basic and diluted EPS computations for our common stock are calculated as follows (in millions, except per share amounts):



	Year Ended December 31,
	2019					2018						2017
	Class A		Class B			Class A			Class B			Class A			Class B
Basic EPS:
Numerator
Net income	$	15,569	$	2,916		$	18,411		$	3,701		$	13,034		$	2,900
Less: Net income attributable to participating securities	—		—			(1		)	—			(12		)	(2		)
Net income attributable to common stockholders	$	15,569	$	2,916		$	18,410		$	3,701		$	13,022		$	2,898
Denominator
Weighted-average shares outstanding	2,404		450			2,406			484			2,375			528
Less: Shares subject to repurchase	—		—			—			—			(2		)	—
Number of shares used for basic EPS computation	2,404		450			2,406			484			2,373			528
Basic EPS	$	6.48	$	6.48		$	7.65		$	7.65		$	5.49		$	5.49
Diluted EPS:
Numerator
Net income attributable to common stockholders	$	15,569	$	2,916		$	18,410		$	3,701		$	13,022		$	2,898
Reallocation of net income attributable to participating securities	—		—			1			—			14			—
Reallocation of net income as a result of conversion of Class B to Class A common stock	2,916		—			3,701			—			2,898			—
Reallocation of net income to Class B common stock	—		(18		)	—			(16		)	—			(13		)
Net income attributable to common stockholders for diluted EPS	$	18,485	$	2,898		$	22,112		$	3,685		$	15,934		$	2,885
Denominator
Number of shares used for basic EPS computation	2,404		450			2,406			484			2,373			528
Conversion of Class B to Class A common stock	450		—			484			—			528			—
Weighted-average effect of dilutive RSUs and employee stock options	22		1			31			3			53			7
Shares subject to repurchase	—		—			—			—			2			—
Number of shares used for diluted EPS computation	2,876		451			2,921			487			2,956			535
Diluted EPS	$	6.43	$	6.43		$	7.57		$	7.57		$	5.39		$	5.39