Earnings Per Share

3 Months Ended

Jul. 31, 2015

We calculate basic earnings per share by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share further includes the dilutive effect of stock-based compensation awards, including stock options, stock-settled stock appreciation rights, restricted stock units, deferred stock units, and shares of restricted stock. We calculate that dilutive effect using the “treasury stock method” (as defined by GAAP).

The following table presents information concerning basic and diluted earnings per share:



	Three Months Ended
	July 31,
(Dollars in millions, except per share amounts)	2014		2015
Net income available to common stockholders	$	150	$	156
Share data (in thousands):
Basic average common shares outstanding	213,444		207,263
Dilutive effect of stock-based awards	1,575		1,375
Diluted average common shares outstanding	215,019		208,638

Basic earnings per share	$	0.70	$	0.75
Diluted earnings per share	$	0.70	$	0.75

We excluded common stock-based awards for approximately 366,000 shares and 644,000 shares from the calculation of diluted earnings per share for the three months ended July 31, 2014 and 2015, respectively. We excluded those awards because they were not dilutive for those periods under the treasury stock method.