Earnings Per Share

6 Months Ended

12 Months Ended

Jul. 31, 2011

Jan. 31, 2011

Earnings Per Share

Earnings Per Share

Note 2—Earnings Per Share (EPS):

In calculating EPS using the two-class method, the Company is required to allocate a portion of its earnings to its unvested stock awards containing nonforfeitable rights to dividends or dividend equivalents (participating securities). Basic EPS is computed by dividing income less earnings allocable to participating securities by the basic weighted average number of shares outstanding. Diluted EPS is computed similar to basic EPS, except the weighted average number of shares outstanding is increased to include the dilutive effect of outstanding stock options and other stock-based awards.

A reconciliation of the income used to compute basic and diluted EPS for the periods presented was as follows:

	Six Months Ended July 31
	2011			2010 as adjusted
	(in millions)
Basic EPS:
Income from continuing operations, as reported	$	242		$	281
Less: allocation of undistributed earnings to participating securities		(9	)		(10	)
Income from continuing operations, for computing basic EPS	$	233		$	271
Net income, as reported	$	309		$	315
Less: allocation of undistributed earnings to participating securities		(11	)		(11	)
Net income, for computing basic EPS	$	298		$	304
Diluted EPS:
Income from continuing operations, as reported	$	242		$	281
Less: allocation of undistributed earnings to participating securities		(9	)		(10	)
Income from continuing operations, for computing diluted EPS	$	233		$	271
Net income, as reported	$	309		$	315
Less: allocation of undistributed earnings to participating securities		(11	)		(11	)
Net income, for computing diluted EPS	$	298		$	304

A reconciliation of the weighted average number of shares outstanding used to compute basic and diluted EPS for the periods presented was as follows:

	Six Months Ended July  31
	2011		2010
	(in millions)
Basic weighted average number of shares outstanding		342		369
Dilutive common share equivalents—stock options and other stock awards		1		2
Diluted weighted average number of shares outstanding		343		371

Basic and diluted EPS for the periods presented was as follows:

	Six Months Ended July 31
	2011		2010 as adjusted
Basic:
Income from continuing operations	$	.68	$	.73
Income from discontinued operations		.19		.09
	$	.87	$	.82
Diluted:
Income from continuing operations	$	.68	$	.73
Income from discontinued operations		.19		.09
	$	.87	$	.82

The following stock-based awards were excluded from the weighted average number of shares outstanding used to compute basic and diluted EPS for the periods presented:

	Six Months Ended July  31
	2011		2010
	(in millions)
Antidilutive stock options excluded		22		20
Performance-based stock awards excluded		1		1

Note 2—Earnings per Share:

In calculating EPS using the two-class method, the Company is required to allocate a portion of its earnings to its unvested stock awards containing nonforfeitable rights to dividends or dividend equivalents (participating securities). Basic EPS is computed by dividing income less earnings allocable to participating securities by the basic weighted average number of shares outstanding. Diluted EPS is computed similar to basic EPS, except the weighted average number of shares outstanding is increased to include the dilutive effect of outstanding stock options and other stock-based awards.

A reconciliation of the income used to compute basic and diluted EPS for the years presented was as follows:

	Year Ended January 31
	2011			2010			2009
	as adjusted (in millions)
Basic EPS:
Income from continuing operations, as reported	$	558		$	479		$	428
Less: allocation of undistributed earnings to participating securities		(18	)		(14	)		(13	)
Income from continuing operations, for computing basic EPS	$	540		$	465		$	415
Net income, as reported	$	619		$	496		$	446
Less: allocation of undistributed earnings to participating securities		(20	)		(15	)		(13	)
Net income, for computing basic EPS	$	599		$	481		$	433
Diluted EPS:
Income from continuing operations, as reported	$	558		$	479		$	428
Less: allocation of undistributed earnings to participating securities		(18	)		(14	)		(12	)
Income from continuing operations, for computing diluted EPS	$	540		$	465		$	416
Net income, as reported	$	619		$	496		$	446
Less: allocation of undistributed earnings to participating securities		(20	)		(15	)		(13	)
Net income, for computing diluted EPS	$	599		$	481		$	433

A reconciliation of the weighted average number of shares outstanding used to compute basic and diluted EPS for the years presented was as follows:

	Year Ended January 31
	2011		2010		2009
	(in millions)
Basic weighted average number of shares outstanding		364		386		395
Dilutive common share equivalents—stock options and other stock awards		2		4		7
Diluted weighted average number of shares outstanding		366		390		402

Basic and diluted EPS for the years presented was as follows:

	Year Ended January 31
	2011		2010		2009
	as adjusted
Basic:
Income from continuing operations	$	1.48	$	1.20	$	1.05
Income from discontinued operations		.17		.05		.05
	$	1.65	$	1.25	$	1.10
Diluted:
Income from continuing operations	$	1.48	$	1.19	$	1.03
Income from discontinued operations		.16		.04		.05
	$	1.64	$	1.23	$	1.08

The following stock-based awards were excluded from the weighted average number of shares outstanding used to compute basic and diluted EPS for the years presented:

	Year Ended January 31
	2011		2010		2009
	(in millions)
Antidilutive stock options excluded		19		11		7
Performance-based stock awards excluded		1		1		—
Weighted average number of unvested stock awards outstanding excluded		12		12		12