Earnings Per Common Share

6 Months Ended

Sep. 30, 2011

Earnings Per Common Share

Earnings Per Common Share

6.     Earnings Per Common Share

Basic earnings per common share are computed by dividing net income by the weighted average number of common shares outstanding during the reporting period. Diluted earnings per common share are computed similar to basic earnings per common share except that it reflects the potential dilution that could occur if dilutive securities or other obligations to issue common stock were exercised or converted into common stock.

The computations for basic and diluted earnings per common share are as follows:

	Quarter Ended September 30,				Six Months Ended September 30,
(In millions, except per share amounts)	2011		2010		2011		2010
Income from continuing operations	$	296	$	255	$	582	$	553
Discontinued operation – gain on sale, net of tax		—		72		—		72
Net income	$	296	$	327	$	582	$	625
Weighted average common shares outstanding:
Basic		246		258		247		262
Effect of dilutive securities:
Options to purchase common stock		1		2		2		3
Restricted stock units		3		2		3		2
Diluted		250		262		252		267
Earnings Per Common Share: (1)
Basic
Continuing operations	$	1.20	$	0.99	$	2.35	$	2.11
Discontinued operation – gain on sale		—		0.28		—		0.28
Total	$	1.20	$	1.27	$	2.35	$	2.39
Diluted
Continuing operations	$	1.18	$	0.97	$	2.31	$	2.07
Discontinued operation – gain on sale		—		0.28		—		0.27
Total	$	1.18	$	1.25	$	2.31	$	2.34

⁽¹⁾Certain computations may reflect rounding adjustments.

Potentially dilutive securities include outstanding stock options, restricted stock units and performance-based restricted stock units. Approximately 1 million and 2 million of potentially dilutive securities were excluded from the computations of diluted net earnings per common share for the quarters ended September 30, 2011 and 2010 and 4 million and 6 million for the six months ended September 30, 2011 and 2010, as they were anti-dilutive.