a 2. Why do you think there is there a dilutive effect from the convertible notes in 2016 and 2015 but not in 2017? SOUTHWEST AIRLINES CO. 2017 FINANCIAL STATEMENTS 3. NET INCOME PER SHARE The following table sets forth the computation of basic and diluted net income per share (in millions except per share amounts): Year ended December 31, 2017 2016 2015 NUMERATOR Net income 3.488 $ 2,244 $ 2,181 Incremental income effect of interest on 5.25% convertible notes 2 Net income after assumed conversion 3.488 $ 2,246 $ 2,185 601 627 661 DENOMINATOR Weighted average shares outstanding, basic Dilutive effect of Employee stock options and restricted stock units Dilutive effect of 5.25% convertible notes Adjusted weighted average shares outstanding, diluted 2 1 5 633 2 6 669 603 NET INCOME PER SHARE Basic Diluted $ 5.80 $ 5.79 $ 3.58 + 3.55$ 3.30 3.27