FACEBOOK, INC. CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share amounts) Year Ended December 31, 2019 2018 2017 Revenue Costs and expenses: Cost of revenue Research and development Marketing and sales General and administrative Total costs and expenses Income from operations Interest and other income, net Income before provision for income taxes Provision for income taxes $ 70,697 $ 55,838 $ 40,653 12,770 9,355 5,454 13,600 10,273 7,754 9,876 7,846 4,725 10,465 3,451 2,517 46,711 30,925 20,450 23,986 24,913 20,203 826 448 391 24,812 25,361 20,594 6,327 3,249 4,660 Net income $ 18,485 $ 22,112 $ 15,934 Less: Net income attributable to participating securities (1) (14) Net income attributable to Class A and Class B common stockholders $ 18,485 $ 22,111 $ 15,920 Earnings per share attributable to Class A and Class B common stockholders: Basic $ 6.48 $ 7.65 $ 5.49 Diluted $ 6.43 $ 7.57 $ 5.39 Weighted-average shares used to compute earnings per share attributable to Class A and Class B common stockholders: Basic Diluted 2,854 2,890 2,901 2,876 2,921 2,956 Share-based compensation expense included in costs and expenses: Cost of revenue $ 377 284 $ 178 Research and development 3,488 3,022 2,820 Marketing and sales 569 511 436 General and administrative 402 335 289 Total share-based compensation expense $ 4,836 $ 4,152 $ 3,723