Earnings per share are calculated by dividing net income by the total number of shares outstanding (Ross 26). Apple Inc.'s 10-K lists earnings per share in two categories, basic and diluted. Basic earnings per share are calculated by dividing income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated by dividing income available to common stockholders by the weighted average number of shares of common stock outstanding during a period of time, but is increased to include additional shares of common stock that would have been outstanding if the potentially dilutive securities had not been released. In 2012, Apple reported basic earnings per share (EPS) of $6.38 and diluted earnings per share of $6.31. In 2013 the company reported basic EPS of $5.72 and diluted EPS of $5.68, while in 2014 the company reported basic EPS of $6.49 and diluted EPS of $6.45 (Apple Inc. Form 10-K.