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NET INCOME PER SHARE
6 Months Ended
Apr. 30, 2014
Earnings Per Share [Abstract]  
NET INCOME PER SHARE
5. NET INCOME PER SHARE
 
The following is a reconciliation of the numerator and denominator of the basic and diluted net income per share computations for the periods presented below:
 
 
Three Months Ended
 
Six Months Ended
 
April 30,
 
April 30,
 
2014
 
2013
 
2014
 
2013
 
(in millions)
Numerator:
 

 
 

 
 

 
 

Net income
$
139

 
$
166

 
$
334

 
$
345

Denominator:
 
 
 
 
 
 
 
Basic weighted-average shares
333

 
345

 
333

 
346

Potentially dilutive common shares equivalents — stock options and other employee stock plans
4

 
4

 
5

 
5

Diluted weighted-average shares
337

 
349

 
338

 
351


 
The dilutive effect of share-based awards is reflected in diluted net income per share by application of the treasury stock method, which includes consideration of unamortized share-based compensation expense, the tax benefits or shortfalls recorded to additional paid-in capital and the dilutive effect of in-the-money options and non-vested restricted stock units. Under the treasury stock method, the amount the employee must pay for exercising stock options and unamortized share-based compensation expense and tax benefits or shortfalls collectively are assumed proceeds to be used to repurchase hypothetical shares. An increase in the fair market value of the company's common stock can result in a greater dilutive effect from potentially dilutive awards.

We exclude stock options with exercise prices greater than the average market price of our common stock from the calculation of diluted earnings per share because their effect would be anti-dilutive. For the three and six months ended April 30, 2014, no options to purchase shares were excluded from the calculation of diluted earnings per share as compared to 5,600 shares for the three and six months ended April 30, 2013. In addition, we also exclude from the calculation of diluted earnings per share, stock options, ESPP, LTPP and restricted stock awards whose combined exercise price, unamortized fair value and excess tax benefits or shortfalls collectively were greater than the average market price of our common stock because their effect would also be anti-dilutive.  For the three and six months ended April 30, 2014 we excluded an additional 1.3 million shares and 657,400 shares as compared to 32,000 and 26,000 additional shares excluded for the three and six months ended April 30, 2013, respectively.