Earnings Per Share

3 Months Ended

Jul. 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
	July 31,
(Dollars in millions, except per share amounts)	2019		2020
Net income available to common stockholders	$	186	$	324

Share data (in thousands):
Basic average common shares outstanding	477,369		478,327
Dilutive effect of stock-based awards	2,719		2,102
Diluted average common shares outstanding	480,088		480,429

Basic earnings per share	$	0.39	$	0.68
Diluted earnings per share	$	0.39	$	0.67

We excluded common stock-based awards for approximately 362,000 shares and 34,000 shares from the calculation of diluted earnings per share for the three months ended July 31, 2019 and 2020, respectively. We excluded those awards because they were not dilutive for those periods under the treasury stock method.