(16) EARNINGS PER SHARE

The following table summarizes the computations of basic earnings per share (“Basic EPS”) and diluted earnings per share (“Diluted EPS”). Basic EPS is computed as net income divided by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from common shares issuable through stock-based compensation plans including stock options, restricted stock, restricted stock units, ESPP purchase rights, warrants, and other convertible securities using the treasury stock method.



	Year Ended March 31,
(In millions, except per share amounts)	2018		2017		2016
Net income	$	1,043	$	967	$	1,156
Shares used to compute earnings per share:
Weighted-average common stock outstanding — basic	308		303		310
Dilutive potential common shares related to stock award plans and from assumed exercise of stock options	4		4		6
Dilutive potential common shares related to the Convertible Notes ^(a)	—		1		6
Dilutive potential common shares related to the Warrants ^(a)	—		6		8
Weighted-average common stock outstanding — diluted	312		314		330
Earnings per share:
Basic	$	3.39	$	3.19	$	3.73
Diluted	$	3.34	$	3.08	$	3.50


(a)	See Note 10 - Financing Arrangements in our Annual Report on Form 10-K for the fiscal year ended March 31, 2017, for additional information regarding the potential dilutive shares related to our Convertible Notes and Warrants.

The Convertible Notes matured on July 15, 2016 and the Warrants expired on January 12, 2017.

For the fiscal years ended March 31, 2018, 2017 and 2016, an immaterial amount of restricted stock units and market-based restricted stock units were excluded from the treasury stock method computation of diluted shares as their inclusion would have had an antidilutive effect. Our performance-based restricted stock units, which are considered contingently issuable shares, are also excluded from the treasury stock method computation because the related performance-based milestones were not achieved as of the end of the reporting period.