NOTE 10 – 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 months ended June 30, 2018 and 2017:



	Three Months Ended June 30,
	2018			2017
	(in millions, except per share amounts)
Basic income per common share:
Net income	$	166		$	178
Less: Net income allocable to participating securities	(2		)	(2		)
Net income allocable to common shares	$	164		$	176
Weighted average common shares outstanding	413			415
Basic income per common share	$	0.40		$	0.42

Diluted income per common share:
Net income	$	166		$	178
Less: Net income allocable to participating securities	(2		)	(2		)
Net income allocable to common shares	$	164		$	176
Weighted average shares outstanding and common share equivalents:
Weighted average common shares outstanding	413			415
Weighted average effect of share-based payment awards	2			2
Denominator in calculation of diluted income per share	415			417
Diluted income per common share	$	0.40		$	0.42

For the three months ended June 30, 2018 and 2017, respectively, approximately 1 million shares and 2 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 June 30, 2018 and 2017, respectively, were considered participating securities in the calculation of net income allocable to common stockholders.