Earnings Per Share

3 Months Ended

Jul. 31, 2017

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. 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)	2016		2017
Net income available to common stockholders	$	144	$	178
Share data (in thousands):
Basic average common shares outstanding	393,018		384,038
Dilutive effect of stock-based awards	2,991		2,349
Diluted average common shares outstanding	396,009		386,387

Basic earnings per share	$	0.37	$	0.46
Diluted earnings per share	$	0.36	$	0.46

We excluded common stock-based awards for approximately 1,173,000 shares and 1,375,000 shares from the calculation of diluted earnings per share for the three months ended July 31, 2016 and 2017, respectively. We excluded those awards because they were not dilutive for those periods under the treasury stock method.