Earnings Per Share

12 Months Ended

Jan. 31, 2020

Earnings Per ShareBasic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding for the fiscal period. Diluted earnings per share is computed by giving effect to all potential weighted average

dilutive common stock, including options, restricted stock units, warrants and the convertible senior notes. The dilutive effect of outstanding awards and convertible securities is reflected in diluted earnings per share by application of the treasury stock method.

A reconciliation of the denominator used in the calculation of basic and diluted earnings per share is as follows (in millions):


4	Fiscal Year Ended January 31,
	2020		2019		2018
Numerator:
Net income	$	126	$	1,110	$	360
Denominator:
Weighted-average shares outstanding for basic earnings per share	829		751		715
Effect of dilutive securities:
Convertible senior notes which matured in April 2018	0		1		5
Employee stock awards	21		21		14
Warrants which settled in June and July 2018	0		2		1
Adjusted weighted-average shares outstanding and assumed conversions for diluted earnings per share	850		775		735

The weighted-average number of shares outstanding used in the computation of basic and diluted earnings per share for fiscal 2020 reflects the impact of approximately 102 million shares issued in relation to the acquisitions of Tableau and ClickSoftware in the third quarter fiscal 2020.

The weighted-average number of shares outstanding used in the computation of diluted earnings per share does not include the effect of the following potential outstanding common stock. The effects of these potentially outstanding shares were not included in the calculation of diluted earnings per share because the effect would have been anti-dilutive (in millions):


	Fiscal Year Ended January 31,
	2020	2019	2018
Employee stock awards	7	4	7