Earnings Per Share

9 Months Ended

Jan. 31, 2020

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				Nine Months Ended
	January 31,				January 31,
(Dollars in millions, except per share amounts)	2019		2020		2019		2020
Net income available to common stockholders	$	227	$	231	$	676	$	699

Share data (in thousands):
Basic average common shares outstanding	477,301		477,898		479,522		477,643
Dilutive effect of stock-based awards	2,798		2,859		3,143		2,793
Diluted average common shares outstanding	480,099		480,757		482,665		480,436

Basic earnings per share	$	0.47	$	0.48	$	1.41	$	1.46
Diluted earnings per share	$	0.47	$	0.48	$	1.40	$	1.45

We excluded common stock-based awards for approximately 548,000 shares and 0 shares from the calculation of diluted earnings per share for the three months ended January 31, 2019 and 2020, respectively. We excluded common stock-based awards for approximately 414,000 shares and 295,000 shares from the calculation of diluted earnings per share for the nine months ended January 31, 2019 and 2020, respectively. We excluded those awards because they were not dilutive for those periods under the treasury stock method.