The following table shows the calculation of basic and diluted net income per share attributable to Gilead common stockholders (in millions except per share amounts):

The denominator for diluted earnings per share was increased by 13 million shares for the effect of options, while Gilead had more than 19 million options exercisable at 12/31/2016. What are factors that could explain the difference?

a. Some of the options are expected to forfeit

b. Some of the options are expected to expire

c. The denominator is increased by stock purchases under the treasury stock method

d. Some of the options are anti-dilutive and do not affect the denominator

e. All of the above

QUESTION 2

What does it mean for options to be anti-dilutive?

a. The strike price is greater than the fair value of the stock

b. Exercise results in a net decrease in shares outstanding

c. More shares could be repurchased with the proceeds that would be issued

d. All of the above

Year Ended December 31, 2016 2015 2014 Net income attributable to Gilead $13,501 $18,108 12,101 Shares used in per share calculation - basic Effect of dilutive securities: 1,339 1,464 1,522 Stock options and equivalents 13 23 Conversion spread related to the Convertible Notes 14 30 Warrants related to the Convertible Notes 4 20 62 Shares used in per share calculation - diluted 1,358 1,521 1,647 Net income per share attributable to Gilead common stockholders basic 10.08 12.37 $ 7.95 Net income per share attributable to Gilead common stockholders - diluted $ 9.94 11.91 7.35 Year Ended December 31, 2016 2015 2014 Net income attributable to Gilead $13,501 $18,108 12,101 Shares used in per share calculation - basic Effect of dilutive securities: 1,339 1,464 1,522 Stock options and equivalents 13 23 Conversion spread related to the Convertible Notes 14 30 Warrants related to the Convertible Notes 4 20 62 Shares used in per share calculation - diluted 1,358 1,521 1,647 Net income per share attributable to Gilead common stockholders basic 10.08 12.37 $ 7.95 Net income per share attributable to Gilead common stockholders - diluted $ 9.94 11.91 7.35