NOTE 3: LOSS PER SHARE AND STOCKHOLDERS' EQUITY

LOSS PER SHARE – Basic and diluted loss per share is computed using the two-class method. The two-class method is an earnings allocation formula that determines net income per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. Per share amounts are computed by dividing net income from continuing operations attributable to common shareholders by the weighted average shares outstanding during each period. The dilutive effect of potential common shares is included in diluted earnings per share except in those periods with a loss from continuing operations. Diluted earnings per share excludes the impact of shares of common stock issuable upon the lapse of certain restrictions or the exercise of options to purchase 5.0 million shares for the three and six months ended October 31, 2015, and 5.4 million shares for the three and six months ended October 31, 2014, as the effect would be antidilutive due to the net loss from continuing operations during those periods.

The computations of basic and diluted earnings per share from continuing operations are as follows:



(in 000s, except per share amounts)
	Three months ended October 31,						Six months ended October 31,
	2015			2014			2015			2014

Net loss from continuing operations attributable to shareholders	$	(142,518	)	$	(113,227	)	$	(239,023	)	$	(222,078	)
Amounts allocated to participating securities	(102		)	(97		)	(204		)	(186		)
Net loss from continuing operations attributable to common shareholders	$	(142,620	)	$	(113,324	)	$	(239,227	)	$	(222,264	)

Basic weighted average common shares	266,267			275,106			271,016			274,841
Potential dilutive shares	—			—			—			—
Dilutive weighted average common shares	266,267			275,106			271,016			274,841

Loss per share from continuing operations attributable to common shareholders:
Basic	$	(0.54	)	$	(0.41	)	$	(0.88	)	$	(0.81	)
Diluted	(0.54		)	(0.41		)	(0.88		)	(0.81		)

The weighted average shares outstanding for the three and six months ended October 31, 2015 decreased to 266.3 million and 271.0 million, respectively, from 275.1 million and 274.8 million for the three and six months ended October 31, 2014, respectively, primarily due to share repurchases completed in the current year. In September 2015, we announced that our Board of Directors approved a new $3.5 billion share repurchase program, effective through June 2019. During the six months ended October 31, 2015, we purchased and immediately retired 40.5 million shares of our common stock at a cost of $1.5 billion ($37.00 per share). The cost of shares retired during the current period was allocated to the components of stockholders’ equity as follows:



	(in 000s)

Common stock	$	405
Additional paid-in-capital	24,325
Retained earnings	1,475,270
Total	$	1,500,000

STOCK-BASED COMPENSATION – In addition to the shares repurchased as discussed above, during the six months ended October 31, 2015, we acquired 0.6 million shares of our common stock at an aggregate cost of $17.8 million. These shares represent shares swapped or surrendered to us in connection with the vesting or exercise of stock-based awards. During the six months ended October 31, 2014, we acquired 0.3 million shares at an aggregate cost of $10.2 million for similar purposes.

During the six months ended October 31, 2015 and 2014, we issued 1.8 million and 1.2 million shares of common stock, respectively, due to the vesting or exercise of stock-based awards.

During the six months ended October 31, 2015, we granted equity awards equivalent to 1.0 million shares under our stock-based compensation plans, consisting primarily of nonvested units. Nonvested units generally either vest over a three-year period with one-third vesting each year or cliff vest at the end of a three-year period. Stock-based compensation expense of our continuing operations totaled $7.9 million and $13.9 million for the three and six months ended October 31, 2015, respectively, and $7.1 million and $14.6 million for the three and six months ended October 31, 2014, respectively. As of October 31, 2015, unrecognized compensation cost for stock options totaled $0.5 million, and for nonvested shares and units totaled $43.7 million.

OTHER COMPREHENSIVE INCOME (LOSS) – Components of other comprehensive income (loss) include foreign currency translation adjustments and the change in net unrealized gains or losses on AFS marketable securities, and are as follows:



(in 000s)
	Foreign Currency Translation Adjustments			Unrealized Gain (Loss) on AFS Securities			Total
Balances as of May 1, 2015	$	(6,789	)	$	8,529		$	1,740
Other comprehensive income (loss) before reclassifications:
Gross losses arising during the period	(9,455		)	(5,769		)	(15,224		)
Income taxes	—			(2,259		)	(2,259		)
	(9,455		)	(3,510		)	(12,965		)
Amounts reclassified to net income:
Gross amount reclassified	—			(8,196		)	(8,196		)
Income taxes	—			(3,213		)	(3,213		)
	—			(4,983		)	(4,983		)
Net other comprehensive loss	(9,455		)	(8,493		)	(17,948		)
Balances as of October 31, 2015	$	(16,244	)	$	36		$	(16,208	)

Balances as of May 1, 2014	$	3,334		$	1,843		$	5,177
Other comprehensive income (loss) before reclassifications:
Gross gains (losses) arising during the period	(3,355		)	7,483			4,128
Income taxes	—			2,713			2,713
	(3,355		)	4,770			1,415
Amounts reclassified to net income:
Gross amount reclassified	—			(24		)	(24		)
Income taxes	—			(9		)	(9		)
	—			(15		)	(15		)
Net other comprehensive income (loss)	(3,355		)	4,755			1,400
Balances as of October 31, 2014	$	(21	)	$	6,598		$	6,577

Gross gains and losses reclassified out of accumulated other comprehensive income are included in other income and other expense, respectively, in the consolidated statements of operations and comprehensive loss.