Earnings Per Share

Basic earnings per share (“EPS”) for the period ended September 30, 2018, is computed using the weighted average number of shares of common stock outstanding between the date of the Distribution and the end of the period. Diluted EPS reflects the incremental shares issuable upon the assumed exercise of stock options and vesting of other equity awards, based on the DXC equity awards that were converted to Perspecta awards on the date of the Distribution. At September 30, 2017, EPS is computed using the shares of Perspecta common stock resulting from the Distribution, as Perspecta did not operate as a stand-alone entity and therefore, no common stock, stock options or other equity awards were outstanding.

The following table reflects the calculation of basic and diluted EPS:



	Three Months Ended				Six Months Ended
(in millions, except per share amounts)	September 30, 2018		September 30, 2017		September 30, 2018		September 30, 2017

Net income:	$	24	$	40	$	53	$	72

Common share information:
Weighted average common shares outstanding for basic EPS	165.49		142.43		165.54		142.43
Dilutive effect of stock options and equity awards	0.30		—		0.28		—
Weighted average common shares outstanding for diluted EPS	165.79		142.43		165.82		142.43

Earnings per share:
Basic	$	0.15	$	0.28	$	0.32	$	0.51
Diluted	$	0.14	$	0.28	$	0.32	$	0.51

Certain restricted stock units (“RSUs”) were excluded from the computation of diluted EPS because inclusion of these amounts would have had an anti-dilutive effect. The number of RSUs excluded were as follows:

Award Type

Three Months Ended September 30, 2018

Six Months Ended September 30, 2018