Basic net income attributable to TWC common shareholders is determined using the two-class method and is computed by dividing net income attributable to TWC common shareholders by the weighted average of common shares outstanding during the period. The two-class method is an earnings allocation formula that determines income per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. Diluted net income attributable to TWC common shareholders reflects the more dilutive earnings per share amount calculated using the treasury stock method or the two-class method.

Set forth below is a reconciliation of net income attributable to TWC common shareholders per basic and diluted common share (in millions, except per share data):

		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2011		2010		2011		2010

Net income attributable to TWC shareholders		$	420	$	342	$	745	$	556
Less: Net income allocated to participating securities^(a)			(2)		(2)		(5)		(4)
Net income attributable to TWC common shareholders		$	418	$	340	$	740	$	552

Average basic common shares outstanding			334.0		354.8		338.7		353.9
Dilutive effect of non-participating equity awards			2.8		2.4		2.9		2.1
Dilutive effect of participating equity awards^(a)			2.8		2.9		3.0		2.5
Average diluted common shares outstanding			339.6		360.1		344.6		358.5

Net income per common share attributable to
	TWC common shareholders:
	Basic	$	1.25	$	0.96	$	2.18	$	1.56
	Diluted	$	1.24	$	0.95	$	2.16	$	1.55

(a) The Company's restricted stock units granted to employees and non-employee directors are considered participating securities with respect to regular quarterly cash dividends.

Diluted net income per common share attributable to TWC common shareholders for the six months ended June 30, 2011 excludes 1.9 million common shares that may be issued under the Company's equity-based compensation plans because they do not have a dilutive effect. For the three months ended June 30, 2011 and the three and six months ended June 30, 2010, antidilutive common shares related to equity-based compensation plans were insignificant.