Earnings per common share (EPS)

3 Months Ended

Apr. 29, 2017

Basic EPS is computed by dividing net income attributable to common shareholders by the weighted average number of common shares outstanding for the period. The computation of basic EPS is outlined in the table below:



	13 weeks ended
(in millions, except per share amounts)	April 29, 2017		April 30, 2016
Numerator:
Net income attributable to common shareholders	$	70.3	$	146.8
Denominator:
Weighted average common shares outstanding	68.1		78.6
EPS – basic	$	1.03	$	1.87

The dilutive effect of share awards represents the potential impact of outstanding awards issued under the Company’s share-based compensation plans, including restricted shares and restricted stock units issued under the Omnibus Plan and stock options issued under the Share Saving Plans and Executive Plans. The dilutive effect of preferred shares represents the potential impact for common shares that would be issued upon conversion. Potential common share dilution related to share awards and preferred shares is determined using the treasury stock and if-converted methods, respectively. Under the if-converted method, the preferred shares are assumed to be converted at the beginning of the period, and the resulting common shares are included in the denominator of the diluted EPS calculation for the entire period being presented, only in the periods in which such effect is dilutive. Additionally, in periods in which preferred shares are dilutive, cumulative dividends and accretion for issuance costs associated with the preferred shares are added back to net income attributable to common shareholders. See Note 4 for additional discussion of the Company’s preferred shares. For the 13 weeks ended April 29, 2017, preferred shares were anti-dilutive. The computation of diluted EPS is outlined in the table below:



	13 weeks ended
(in millions, except per share amounts)	April 29, 2017		April 30, 2016
Numerator:
Net income attributable to common shareholders	$	70.3	$	146.8
Add: Dividends on preferred shares	—		n/a
Numerator for diluted EPS	$	70.3	$	146.8

Denominator:
Weighted average common shares outstanding	68.1		78.6
Plus: Dilutive effect of share awards	0.1		0.1
Plus: Dilutive effect of preferred shares	—		n/a
Diluted weighted average common shares outstanding	68.2		78.7

EPS – diluted	$	1.03	$	1.87


n/a	Not applicable as preferred shares were issued in October 2016. See Note 4 for additional information.

The calculation of diluted EPS excludes the following items for each respective period on the basis that their effect would be anti-dilutive.



	13 weeks ended
(in millions)	April 29, 2017	April 30, 2016
Share awards	0.3	0.1
Potential impact of preferred shares	6.7	—
Total anti-dilutive shares	7.0	0.1