Net Income (Loss) Per Share

9 Months Ended

Oct. 31, 2020

Basic 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 and restricted stock units. 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):


3	Three Months Ended October 31,				Nine Months Ended October 31,
	2020		2019		2020		2019
Numerator:
Net income (loss)	$	1,081	$	(109)	$	3,805	$	374
Denominator:
Weighted-average shares outstanding for basic earnings per share	911		879		905		809


Dilutive effect of employee stock awards	28		0		21		20

Adjusted weighted-average shares outstanding and assumed conversions for diluted earnings (loss) per share	939		879		926		829

The weighted-average number of shares outstanding used in the computation of diluted earnings per share does not include the effect of the following potentially 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):


	Three Months Ended October 31,		Nine Months Ended October 31,
	2020	2019	2020	2019
Employee stock awards	0	28	8	6