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Loss Per Share And Stockholders' Equity
 9 Months Ended
Jan. 31, 2012
Loss Per Share And Stockholders' Equity [Abstract]  
Loss Per Share And Stockholders' Equity

2. Loss Per Share and Stockholders' Equity

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 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 9.6 million shares for the three and nine months ended January 31, 2012, and 12.6 million shares for the three and nine months ended January 31, 2011, as the effect would be antidilutive due to the net loss from continuing operations during each period.

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,

 

 2012 2011 2012 2011

Net loss from continuing operations attributable to shareholders

$ (3,567 )

$ (11,034 )

$ (245,735 )

$ (250,286 )

Amounts allocated to participating securities (nonvested shares)

24

(148 )

(152 )

(142 )

 

 

 

 

 

Net loss from continuing operations attributable to common shareholders

$ (3,543 )

$ (11,182 )

$ (245,887 )

$ (250,428 )

 

 

 

 

 

Basic weighted average common shares

292,963

305,144

299,450

310,546

Potential dilutive shares

—  

—  

—  

—  

 

 

 

 

 

Dilutive weighted average common shares

292,963

305,144

299,450

310,546

 

 

 

 

 

Loss per share from continuing operations:

 

 

 

 

Basic

$ (0.01 )

$ (0.04 )

$ (0.82 )

$ (0.80 )

Diluted

(0.01 )

(0.04 )

(0.82 )

(0.80 )

The weighted average shares outstanding for the three and nine months ended January 31, 2012 decreased to 293.0 million and 299.5 million, respectively, from 305.1 million and 310.5 million for the three and nine months ended January 31, 2011, respectively, primarily due to share repurchases completed in the current fiscal year. During the nine months ended January 31, 2012, we purchased and immediately retired 13.0 million shares of our common stock at a cost of $177.5 million. The cost of shares retired during the current period was allocated to the components of stockholders' equity as follows:

 

 (in 000s)

Common stock

$ 130

Additional paid-in capital

7,826

Retained earnings

169,548

 

 

 

$ 177,504

 

 

During the nine months ended January 31, 2011, we purchased and immediately retired 19.0 million shares of our common stock at a cost of $279.9 million.

In addition to the shares we repurchased as described above, during the nine months ended January 31, 2012, we acquired 0.2 million shares of our common stock at an aggregate cost of $3.1 million. These shares represent shares swapped or surrendered to us in connection with the vesting of nonvested shares and the exercise of stock options. During the nine months ended January 31, 2011, we acquired 0.2 million shares at an aggregate cost of $3.5 million for similar purposes.

During the nine months ended January 31, 2012 and 2011, we issued 1.0 million and 1.1 million shares of common stock, respectively, due to the exercise of stock options, employee stock purchases and vesting of nonvested shares.

During the nine months ended January 31, 2012, we granted 2.4 million stock options and 1.0 million nonvested shares and units under our stock-based compensation plans. The weighted average fair value of options granted was $3.36 for management options. These awards typically vest over a three year period with one-third vesting each year. Stock-based compensation expense of our continuing operations totaled $2.0 million and $11.0 million for the three and nine months ended January 31, 2012, respectively, and $3.5 million and $7.3 million for the three and nine months ended January 31, 2011, respectively. At January 31, 2012, unrecognized compensation cost for options totaled $7.5 million, and for nonvested shares and units totaled $16.5 million.