Earnings per Share

We compute earnings per share (EPS) of Class A and Class B common stock using the two-class method.

Basic EPS is computed by dividing net income by the weighted-average number of shares of our Class A and Class B common stock outstanding.

For the calculation of diluted EPS, net income for basic EPS is adjusted by the effect of dilutive securities under our equity compensation plans. 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 by the weighted-average number of fully diluted common shares outstanding.

Restricted stock units (RSUs) with anti-dilutive effect were excluded from the EPS calculation and they were not material for the three and nine months ended September 30, 2020 and 2019.

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):



	Three Months Ended September 30,										Nine Months Ended September 30,
	2020					2019					2020					2019
	Class A		Class B			Class A		Class B			Class A		Class B			Class A		Class B
Basic EPS:
Numerator
Net income	$	6,623	$	1,223		$	5,138	$	953		$	15,133	$	2,794		$	9,372	$	1,764
Denominator
Weighted-average shares outstanding	2,406		444			2,407		447			2,406		444			2,403		452
Basic EPS	$	2.75	$	2.75		$	2.13	$	2.13		$	6.29	$	6.29		$	3.90	$	3.90
Diluted EPS:
Numerator
Net income	$	6,623	$	1,223		$	5,138	$	953		$	15,133	$	2,794		$	9,372	$	1,764
Reallocation of net income as a result of conversion of Class B to Class A common stock	1,223		—			953		—			2,794		—			1,764		—
Reallocation of net income to Class B common stock	—		(18		)	—		(6		)	—		(32		)	—		(9		)
Net income for diluted EPS	$	7,846	$	1,205		$	6,091	$	947		$	17,927	$	2,762		$	11,136	$	1,755
Denominator
Number of shares used for basic EPS computation	2,406		444			2,407		447			2,406		444			2,403		452
Conversion of Class B to Class A common stock	444		—			447		—			444		—			452		—
Weighted-average effect of dilutive RSUs and employee stock options	41		—			20		—			33		—			20		1
Number of shares used for diluted EPS computation	2,891		444			2,874		447			2,883		444			2,875		453
Diluted EPS	$	2.71	$	2.71		$	2.12	$	2.12		$	6.22	$	6.22		$	3.87	$	3.87