Earnings Per Share

3 Months Ended

Jul. 29, 2022

Basic earnings per share is computed based on the weighted average number of ordinary shares outstanding. Diluted earnings per share is computed based on the weighted number of ordinary shares outstanding, increased by the number of additional shares that would have been outstanding had the potentially dilutive ordinary shares been issued, and reduced by the number of shares the Company could have repurchased with the proceeds from issuance of the potentially dilutive shares. Potentially dilutive ordinary shares include stock-based awards granted under stock-based compensation plans and shares committed to be purchased under the employee stock purchase plan.

The table below sets forth the computation of basic and diluted earnings per share:


	Three months ended
(in millions, except per share data)	July 29, 2022		July 30, 2021
Numerator:
Net income attributable to ordinary shareholders	$	929	$	763
Denominator:
Basic – weighted average shares outstanding	1,329.4		1,344.5
Effect of dilutive securities:
Employee stock options	2.7		8.5
Employee restricted stock units	1.3		2.3
Employee performance share units	1.1		1.0
Diluted – weighted average shares outstanding	1,334.5		1,356.4
Basic earnings per share	$	0.70	$	0.57
Diluted earnings per share	$	0.70	$	0.56

The calculation of weighted average diluted shares outstanding excludes options to purchase approximately 14 million and 1 million ordinary shares for the three months ended July 29, 2022 and July 30, 2021, respectively, because their effect would have been anti-dilutive on the Company’s earnings per share.