NOTE 2: 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 or loss 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 4.5 million shares for the three and nine months ended January 31, 2017, and 4.6 million shares for the three and nine months ended January 31, 2016, 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 January 31,						Nine months ended January 31,
	2017			2016			2017			2016
Net loss from continuing operations attributable to shareholders	$	(101,212	)	$	(78,649	)	$	(365,653	)	$	(317,672	)
Amounts allocated to participating securities	(143		)	(112		)	(410		)	(316		)
Net loss from continuing operations attributable to common shareholders	$	(101,355	)	$	(78,761	)	$	(366,063	)	$	(317,988	)

Basic weighted average common shares	207,862			231,904			214,627			257,979
Potential dilutive shares	—			—			—			—
Dilutive weighted average common shares	207,862			231,904			214,627			257,979

Loss per share from continuing operations attributable to common shareholders:
Basic	$	(0.49	)	$	(0.34	)	$	(1.71	)	$	(1.23	)
Diluted	(0.49		)	(0.34		)	(1.71		)	(1.23		)

The weighted average shares outstanding for the three and nine months ended January 31, 2017 decreased to 207.9 million and 214.6 million, respectively, from 231.9 million and 258.0 million for the three and nine months ended January 31, 2016, respectively, primarily due to share repurchases completed in the prior and current year. During the nine months ended January 31, 2017, we purchased and immediately retired 14.0 million shares at an aggregate cost of $317.0 million (average price of $22.61 per share). During the nine months ended January 31, 2016, we purchased and immediately retired 52.5 million shares at an aggregate cost of $1.9 billion (average price of $36.02 per share). The cost of shares retired was allocated to the components of stockholders’ equity as follows:



	(in 000s)
Nine months ended January 31,	2017		2016
Common stock	$	140	$	525
Additional paid-in-capital	8,412		31,506
Retained earnings	308,468		1,859,807
Total	$	317,020	$	1,891,838

STOCK-BASED COMPENSATION – In addition to the shares repurchased as discussed above, during the nine months ended January 31, 2017, we acquired 0.3 million shares of our common stock at an aggregate cost of $5.8 million. These shares represent shares swapped or surrendered to us in connection with the vesting or exercise of stock-based awards. During the nine months ended January 31, 2016, we acquired 0.6 million shares at an aggregate cost of $17.9 million for similar purposes.

During the nine months ended January 31, 2017 and 2016, we issued 0.9 million and 2.2 million shares of common stock, respectively, due to the vesting or exercise of stock-based awards.

During the nine months ended January 31, 2017, we granted equity awards equivalent to 1.2 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, although the Compensation Committee may in limited circumstances approve grants with a modified vesting schedule. Stock-based compensation expense of our continuing operations totaled $4.5 million and $16.9 million for the three and nine months ended January 31, 2017, respectively, and $7.2 million and $21.1 million for the three and nine months ended January 31, 2016, respectively. As of January 31, 2017, unrecognized compensation cost for stock options totaled $0.1 million, and for nonvested shares and units totaled $33.5 million.