Earnings Per Share

Earnings per share is calculated using the two-class method, as the Company's A Preferred Shares are considered participating securities. Accordingly, earnings are allocated to both ordinary shares and participating securities in determining earnings per ordinary share. Due to the limited number of A Preferred Shares outstanding, this allocation had no effect on ordinary earnings per share; therefore, it is not presented below. Basic earnings per share is computed based on the weighted average number of ordinary shares outstanding. Diluted earnings per share is computed based on the weighted average number of ordinary shares outstanding, increased by the number of additional shares that would have been outstanding had the potentially dilutive ordinary shares been issued, and reduced by the number of shares the Company could have repurchased from the proceeds from issuance of the potentially dilutive shares. Potentially dilutive ordinary shares include stock options and other stock-based awards granted under stock-based compensation plans and shares committed to be purchased under the employee stock purchase plan.

The table below sets forth the computation of basic and diluted earnings per share:



	Three months ended
(in millions, except per share data)	July 28, 2017		July 29, 2016
Numerator:
Net income attributable to ordinary shareholders	$	1,016	$	929
Denominator:
Basic – weighted average shares outstanding	1,361.9		1,392.2
Effect of dilutive securities:
Employee stock options	9.2		10.5
Employee restricted stock units	4.0		3.9
Other	0.5		0.5
Diluted – weighted average shares outstanding	1,375.6		1,407.1

Basic earnings per share	$	0.75	$	0.67
Diluted earnings per share	$	0.74	$	0.66

The calculation of weighted average diluted shares outstanding excludes options to purchase approximately 4 million ordinary shares both for the three months ended July 28, 2017 and July 29, 2016, because their effect would be anti-dilutive on the Company’s earnings per share.