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 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 3.4 million shares for the three months ended July 31, 2018, and 2.8 million shares for the three months ended July 31, 2017, as the effect would be antidilutive due to the net loss from continuing operations during those periods.

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



(in 000s, except per share amounts)
Three months ended July 31,	2018			2017
Net loss from continuing operations attributable to shareholders	$	(148,797	)	$	(127,818	)
Amounts allocated to participating securities	(142		)	(160		)
Net loss from continuing operations attributable to common shareholders	$	(148,939	)	$	(127,978	)

Basic weighted average common shares	207,673			207,935
Potential dilutive shares	—			—
Dilutive weighted average common shares	207,673			207,935

Loss per share from continuing operations attributable to common shareholders:
Basic	$	(0.72	)	$	(0.62	)
Diluted	(0.72		)	(0.62		)

The weighted average shares outstanding for the three months ended July 31, 2018 decreased to 207.7 million from 207.9 million for the three months ended July 31, 2017. The decrease is due to share repurchases completed in the current year. During the three months ended July 31, 2018, we purchased and immediately retired 4.2 million shares at an aggregate cost of $97.1 million (average price of $23.27 per share). We did not repurchase and retire any shares during the three months ended July 31, 2017. The cost of shares retired during the current period was allocated to the components of stockholders’ equity as follows:



	(in 000s)

Common stock	$	42
Additional paid-in-capital	2,503
Retained earnings	94,560
Total	$	97,105

STOCK-BASED COMPENSATION – During the three months ended July 31, 2018, we also acquired 0.2 million shares of our common stock at an aggregate cost of $4.6 million, which represent shares swapped or surrendered to us in connection with the vesting or exercise of stock-based awards. During the three months ended July 31, 2017, we acquired 0.2 million shares at an aggregate cost of $7.5 million for similar purposes.

During the three months ended July 31, 2018 and 2017, we issued 0.6 million and 2.1 million shares of common stock, respectively, due to the vesting or exercise of stock-based awards.

During the three months ended July 31, 2018, we granted equity awards equivalent to 0.9 million shares under our stock-based compensation plans, consisting primarily of nonvested units. Stock-based compensation expense of our continuing operations totaled $4.4 million for the three months ended July 31, 2018, and $4.8 million for the three months ended July 31, 2017. As of July 31, 2018, unrecognized compensation cost for stock options totaled $1.0 million, and for nonvested shares and units totaled $45.3 million.