Earnings Per Share

Basic earnings per share (“EPS”) for the three and nine month periods ended December 31, 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. EPS for the three and nine month periods ended December 31, 2017, 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				Nine Months Ended
(in millions, except per share amounts)	December 31, 2018		December 31, 2017		December 31, 2018		December 31, 2017
Net income	$	38	$	104	$	91	$	176

Common share information:
Weighted average common shares outstanding for basic EPS	164.32		142.43		165.02		142.43
Dilutive effect of stock options and equity awards	0.22		—		0.25		—
Weighted average common shares outstanding for diluted EPS	164.54		142.43		165.27		142.43

Earnings per share:
Basic	$	0.23	$	0.73	$	0.55	$	1.24
Diluted	$	0.23	$	0.73	$	0.55	$	1.24

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 (in millions):

Award Type

Three Months Ended December 31, 2018

Nine Months Ended December 31, 2018