Keysight Technologies, Inc. - 10-Q filing on 2017-06-07

NET INCOME PER SHARE

6 Months Ended

Apr. 30, 2017

The following is a reconciliation of the numerator and denominator of the basic and diluted net income per share computations for the periods presented below:



	Three Months Ended				Six Months Ended
	April 30,				April 30,
	2017		2016		2017		2016
	(in millions)
Numerator:
Net income	$	49	$	88	$	158	$	152
Denominator:
Basic weighted-average shares	177		170		174		171
Potential common shares— stock options and other employee stock plans	2		2		2		1
Diluted weighted-average shares	179		172		176		172

The dilutive effect of share-based awards is reflected in diluted net income per share by application of the treasury stock method. We exclude stock options with exercise prices greater than the average market price of our common stock from the calculation of diluted earnings per share because the effect would be anti-dilutive. For the three and six months ended April 30, 2017, we excluded zero options, from the calculation of diluted earnings per share. For the three and six months ended April 30, 2016, 1.7 million options to purchase shares were excluded from the calculation of diluted earnings per share. In addition, we excluded stock options, ESPP shares, LTP Program and restricted stock awards, of which the combined exercise price, unamortized fair value and excess tax benefits collectively was greater than the average market price of our common stock because the effect would be anti-dilutive. For the three and six months ended April 30, 2017, we excluded approximately 10,000 and 42,000 shares, respectively. For the three and six months ended April 30, 2016, we excluded 30,000 and 23,100 shares, respectively.

The weighted-average share count for the three and six months ended April 30, 2017 includes the impact of the public offering of our common stock in March 2017 (See Note 17).