Computation of Earnings Per Common Share

12 Months Ended

Jan. 30, 2021

Computation of Earnings Per Common Share

Computation of Earnings per Common Share

The following table sets forth the computation of basic and diluted earnings per common share (dollars in thousands, except per share amounts):


	Fiscal Year Ended
	January 30, 2021		January 25, 2020		January 26, 2019
Net income available to common stockholders (numerator)	$	34,337	$	57,215	$	62,907

Weighted-average number of common shares (denominator)	31,665,183		31,498,474		31,250,376

Basic earnings per common share	$	1.08	$	1.82	$	2.01

Weighted-average number of common shares	31,665,183		31,498,474		31,250,376
Potential shares of common stock arising from stock options, and unvested restricted share units	425,395		323,308		555,993
Potential shares of common stock issuable on conversion of 0.75% convertible senior notes due 2021(1)	—		—		183,799
Total shares-diluted (denominator)	32,090,578		31,821,782		31,990,168

Diluted earnings per common share	$	1.07	$	1.80	$	1.97

Anti-dilutive weighted shares excluded from the calculation of earnings per common share:
Stock-based awards	233,988		253,000		130,779
0.75% convertible senior notes due 2021(1) (2)	1,715,972		4,747,706		4,821,935
Warrants(1) (2)	1,715,972		4,747,706		5,005,734
Total	3,665,932		9,748,412		9,958,448

(1) Under the treasury stock method, the convertible senior notes will have a dilutive impact on earnings per common share if our average stock price for the period exceeds the $96.89 per share conversion price. Our average stock price did not exceed the per share conversion price during fiscal 2021; therefore, there was no dilutive impact on earnings per common share for this period. During the first and second quarter of fiscal 2019, our average stock price of $110.46 and $99.27 exceeded the conversion price. As a result, shares presumed to be issuable under the convertible senior notes that were dilutive during each period are included in the calculation of diluted earnings per share for fiscal 2019. The warrants associated with our convertible senior notes will have a dilutive impact on earnings per common share if our average stock price for the period exceeds the $130.43 per share warrant strike price. As our average stock price did not exceed the strike price for the warrants for any of the periods presented, the underlying common shares were anti-dilutive as reflected in the table above.

(2) In connection with the purchase of $401.7 million of the Notes in fiscal 2021 and $25.0 million in fiscal 2020, we unwound convertible note hedge transactions and warrants proportionately to the number of Notes, resulting in a decrease in the number of excluded weighted shares.

In connection with the offering of the convertible senior notes, we entered into convertible note hedge transactions with counterparties for the purpose of reducing the potential dilution to common stockholders from the conversion of the notes and offsetting any potential cash payments in excess of the principal amount of the notes. Prior to conversion, the convertible note hedge is not included for purposes of the calculation of earnings per common share as its effect would be anti-dilutive. Upon conversion, the convertible note hedge is expected to offset the dilutive effect of the convertible senior notes when the average stock price for the period is above $96.89 per share. See Note 14, Debt, for additional information related to our convertible senior notes, warrant transactions, and hedge transactions.