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:
|
| | | | | | | | | | | |
| Years Ended March 31, |
(In millions, except per share amounts) | 2013 | | 2012 | | 2011 |
Income from continuing operations | $ | 1,338 |
| | $ | 1,403 |
| | $ | 1,130 |
|
Discontinued operation - gain on sale, net of tax | — |
| | — |
| | 72 |
|
Net income | $ | 1,338 |
| | $ | 1,403 |
| | $ | 1,202 |
|
| | | | | |
Weighted average common shares outstanding: | | | | | |
Basic | 235 |
| | 246 |
| | 258 |
|
Effect of dilutive securities: | | | | | |
Options to purchase common stock | 1 |
| | 2 |
| | 3 |
|
Restricted stock units | 3 |
| | 3 |
| | 2 |
|
Diluted | 239 |
| | 251 |
| | 263 |
|
| | | | | |
Earnings per common share: (1) | | | | | |
Diluted | | | | | |
Continuing operations | $ | 5.59 |
| | $ | 5.59 |
| | $ | 4.29 |
|
Discontinued operation - gain on sale | — |
| | — |
| | 0.28 |
|
Total | $ | 5.59 |
| | $ | 5.59 |
| | $ | 4.57 |
|
Basic | | | | | |
Continuing operations | $ | 5.71 |
| | $ | 5.70 |
| | $ | 4.37 |
|
Discontinued operation - gain on sale | — |
| | — |
| | 0.28 |
|
Total | $ | 5.71 |
| | $ | 5.70 |
| | $ | 4.65 |
|
| |
(1) | Certain computations may reflect rounding adjustments. |
Potentially dilutive securities primarily include outstanding stock options, RSUs and PeRSUs. Approximately 2 million, 4 million and 6 million of potentially dilutive securities were excluded from the computations of diluted net earnings per common share in 2013, 2012 and 2011, as they were anti-dilutive.
