Earnings Per Share

3 Months Ended

Jun. 30, 2021

Earnings Per Share Reconciliation [Abstract]

(14) 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, and ESPP purchase rights using the treasury stock method.


	Three Months Ended June 30,
(In millions, except per share amounts)	2021		2020
Net income	$	204	$	365
Shares used to compute earnings per share:
Weighted-average common stock outstanding — basic	286		288
Dilutive potential common shares related to stock award plans and from assumed exercise of stock options	3		4
Weighted-average common stock outstanding — diluted	289		292
Earnings per share:
Basic	$	0.71	$	1.27
Diluted	$	0.71	$	1.25

For the three months ended June 30, 2021 and 2020, one million of stock options, restricted stock units and market-based restricted stock units were excluded from the treasury stock method computation of diluted shares, respectively, 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 three months ended June 30, 2021 and 2020.