NOTE I – INCOME PER COMMON SHARE

Basic net income per common share excludes dilution and is calculated by dividing net income allocable to common shares by the weighted average number of common shares outstanding for the period. Diluted net income per common share is calculated by dividing net income allocable to common shares by the weighted average number of common shares, as adjusted for the potential dilutive effect of non-participating share-based awards.

The following table presents basic and diluted income per common share information for the three and six months ended September 30, 2017 and 2016:



	Three Months Ended September 30,						Six Months Ended September 30,
	2017			2016			2017			2016
	(in millions, except per share amounts)
Basic income per common share:
Net income	$	184		$	212		$	362		$	410
Less: Net income allocable to participating securities	(3		)	(3		)	(5		)	(5		)
Net income allocable to common shares	$	181		$	209		$	357		$	405
Weighted average common shares outstanding	415			414			415			414
Basic income per common share	$	0.44		$	0.50		$	0.86		$	0.98

Diluted income per common share:
Net income	$	184		$	212		$	362		$	410
Less: Net income allocable to participating securities	(3		)	(3		)	(5		)	(5		)
Net income allocable to common shares	$	181		$	209		$	357		$	405
Weighted average shares outstanding and common share equivalents:
Weighted average common shares outstanding	415			414			415			414
Weighted average effect of share-based payment awards	1			1			1			1
Denominator in calculation of diluted income per share	416			415			416			415
Diluted income per common share	$	0.44		$	0.50		$	0.86		$	0.98

For the three months ended September 30, 2017 and 2016, respectively, approximately 2 million shares and 1 million shares of Company common stock underlying restricted stock awards (RSAs) and options to purchase common stock were excluded from the calculation because their effect on income per share was anti-dilutive during the respective periods. Weighted average RSAs of approximately 5 million shares and 5 million shares for the three months ended September 30, 2017 and 2016, respectively, were considered participating securities in the calculation of net income allocable to common stockholders.

For the six months ended September 30, 2017 and 2016, respectively, approximately 2 million shares and 1 million shares of Company common stock underlying RSAs and options to purchase common stock were excluded from the calculation because their effect on income per share was anti-dilutive during the respective periods. Weighted average RSAs of approximately 5 million shares and 5 million shares for the six months ended September 30, 2017 and 2016, respectively, were considered participating securities in the calculation of net income allocable to common stockholders.