EARNINGS PER SHARE AND STOCKHOLDERS' EQUITY

9 Months Ended

Jan. 31, 2021

EARNINGS PER SHARE AND STOCKHOLDERS' EQUITY

NOTE 3: EARNINGS PER SHARE AND STOCKHOLDERS' EQUITY

EARNINGS 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 5.4 million shares for the three and nine months ended January 31, 2021 and 3.7 million shares for the three and nine months ended January 31, 2020, 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 January 31,				Nine months ended January 31,
	2021		2020		2021		2020
Net loss from continuing operations attributable to shareholders	$	(231,831)	$	(128,026)	$	(360,755)	$	(457,304)
Amounts allocated to participating securities	(210)		(169)		(592)		(468)
Net loss from continuing operations attributable to common shareholders	$	(232,041)	$	(128,195)	$	(361,347)	$	(457,772)

Basic weighted average common shares	183,438		194,077		188,548		198,064
Potential dilutive shares	—		—		—		—
Dilutive weighted average common shares	183,438		194,077		188,548		198,064

Loss per share from continuing operations attributable to common shareholders:
Basic	$	(1.27)	$	(0.66)	$	(1.92)	$	(2.31)
Diluted	(1.27)		(0.66)		(1.92)		(2.31)

The decrease in the weighted average shares outstanding for both the three and nine month periods is due to share repurchases completed in the current and prior fiscal years.

STOCK-BASED COMPENSATION – During the nine months ended January 31, 2021, we granted awards of 2.5 million shares under our stock-based compensation plans, consisting primarily of nonvested units. Stock-based compensation expense of our continuing operations totaled $5.8 million and $20.7 million for the three and nine months ended January 31, 2021, respectively, and $6.6 million and $22.7 million for the three and nine months ended January 31, 2020, respectively. As of January 31, 2021, unrecognized compensation cost for stock options totaled $0.8 million, and for nonvested shares and units totaled $40.9 million.