EARNINGS (LOSS) PER SHARE AND STOCKHOLDERS' EQUITY

3 Months Ended

Jul. 31, 2020

EARNINGS (LOSS) PER SHARE AND STOCKHOLDERS' EQUITY

NOTE 3: EARNINGS (LOSS) PER SHARE AND STOCKHOLDERS' EQUITY

EARNINGS (LOSS) PER SHARE – Basic and diluted earnings (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 1.3 million shares for the three months ended July 31, 2020 as the effect would be antidilutive, and 3.7 million shares for the three months ended July 31, 2019, as the effect would be antidilutive due to the net loss from continuing operations during the period.

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



(in 000s, except per share amounts)
	Three months ended July 31,
	2020			2019
Net earnings (loss) from continuing operations attributable to shareholders	$	93,556		$	(145,724	)
Amounts allocated to participating securities	(327		)	(149		)
Net earnings (loss) from continuing operations attributable to common shareholders	$	93,229		$	(145,873	)

Basic weighted average common shares	192,598			202,037
Potential dilutive shares	1,469			—
Dilutive weighted average common shares	194,067			202,037

Earnings (loss) per share from continuing operations attributable to common shareholders:
Basic	$	0.48		$	(0.72	)
Diluted	0.48			(0.72		)

The weighted average shares outstanding for the three months ended July 31, 2020 decreased to 192.6 million from 202.0 million for the three months ended July 31, 2019. The decrease is due to share repurchases completed in the prior year.

STOCK-BASED COMPENSATION – During the three months ended July 31, 2020, we acquired 0.2 million shares of our common stock at an aggregate cost of $2.9 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, 2019, we acquired 0.3 million shares at an aggregate cost of $9.2 million for similar purposes.

During the three months ended July 31, 2020 and 2019, we issued 0.6 million and 0.9 million shares of common stock, respectively, due to the vesting or exercise of stock-based awards.

During the three months ended July 31, 2020, we granted awards equivalent to 1.8 million shares under our stock-based compensation plans, consisting of nonvested units. Stock-based compensation expense of our continuing operations totaled $7.6 million for the three months ended July 31, 2020 and $6.7 million for the three months ended July 31, 2019. As of July 31, 2020, unrecognized compensation cost for nonvested shares and units totaled $53.8 million.