Income from Continuing Operations Per Common Share

3 Months Ended

Jun. 30, 2011

Income From Continuing Operations Per Common Share [Abstract]

INCOME FROM CONTINUING OPERATIONS PER COMMON SHARE

NOTE M — INCOME FROM CONTINUING OPERATIONS PER COMMON SHARE

Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of net income per share under the two-class method. Under the two-class method, net income is reduced by the amount of dividends declared in the period for each class of common stock and participating securities. The remaining undistributed income is then allocated to common stock and participating securities as if all of the net income for the period had been distributed. 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 of the balance sheet date, as adjusted for the potential dilutive effect of non-participating share-based awards. The following table reconciles net income per common share for the three months ended June 30, 2011 and 2010.

	Three Months
	Ended June 30,
	2011			2010
	(in millions, except per share
	amounts)
Basic income from continuing operations per common share:
Income from continuing operations	$	228		$	221
Less: Income from continuing operations allocable to participating securities		(3	)		(3	)
Income from continuing operations allocable to common shares	$	225		$	218
Weighted average common shares outstanding		500			510
Basic income from continuing operations per common share	$	0.45		$	0.43
Diluted income from continuing operations per common share:
Income from continuing operations	$	228		$	221
Less: Income from continuing operations allocable to participating securities		(3	)		(3	)
Income from continuing operations allocable to common shares	$	225		$	218
Weighted average shares outstanding and common share equivalents
Weighted average common shares outstanding		500			510
Weighted average effect of share-based payment awards		1			1
Denominator in calculation of diluted income per share		501			511
Diluted income from continuing operations per common share	$	0.45		$	0.43

For the three months ended June 30, 2011 and 2010, respectively, approximately 5 million and 10 million shares of Company common stock underlying restricted stock awards 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 restricted stock awards of approximately 7 million and 7 million for the three months ended June 30, 2011 and 2010, respectively, were considered participating securities in the calculation of net income available to common shareholders.