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 and six months ended September 30, 2018 and 2017:



	Three Months Ended September 30,						Six Months Ended September 30,
	2018			2017			2018			2017
	(in millions, except per share amounts)
Basic income per common share:
Net income	$	129		$	184		$	295		$	362
Less: Net income allocable to participating securities	(2		)	(3		)	(4		)	(5		)
Net income allocable to common shares	$	127		$	181		$	291		$	357
Weighted average common shares outstanding	413			415			414			415
Basic income per common share	$	0.31		$	0.44		$	0.70		$	0.86

Diluted income per common share:
Net income	$	129		$	184		$	295		$	362
Less: Net income allocable to participating securities	(2		)	(3		)	(4		)	(5		)
Net income allocable to common shares	$	127		$	181		$	291		$	357
Weighted average shares outstanding and common share equivalents:
Weighted average common shares outstanding	413			415			414			415
Weighted average effect of share-based payment awards	3			1			2			1
Denominator in calculation of diluted income per share	416			416			416			416
Diluted income per common share	$	0.31		$	0.44		$	0.70		$	0.86

For the three months ended September 30, 2018, there were no shares of Company common stock underlying restricted stock awards (“RSAs”) and options to purchase common stock that were excluded from the calculation because their effect on income per share was anti-dilutive during the respective periods. For the three months ended September 30, 2017, approximately 2 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 for the three months ended September 30, 2018 and 2017 were considered participating securities in the calculation of net income allocable to common stockholders.

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