Earnings Per Share

9 Months Ended

Oct. 29, 2016

10. Earnings Per Share

The Company accounts for and discloses earnings per share using the treasury stock method. Basic earnings per share is computed by dividing net income for the period by the weighted-average number of common shares outstanding. Restricted stock awards, which contain non-forfeitable rights to dividends, are considered participating securities and are included in the calculation of basic earnings per share. Diluted earnings per share reflects the weighted-average number of common shares outstanding during the period used in the basic earnings per share computation plus dilutive common stock equivalents.

The computation of basic and diluted earnings per share is as follows:



	Thirteen weeks ended					Thirty-nine weeks ended
		October 29,		October 31,		October 29,		October 31,
		2016		2015		2016		2015
		(in millions, except per share data)
Net Income		$	157	$	80	$	475	$	383

Weighted-average common shares outstanding			132.9		139.3		134.6		139.6
Dilutive effect of potential common shares			1.1		1.6		1.1		1.8
Weighted-average common shares outstanding assuming dilution			134.0		140.9		135.7		141.4

Earnings per share - basic		$	1.18	$	0.57	$	3.53	$	2.74
Earnings per share - diluted		$	1.17	$	0.57	$	3.50	$	2.71

Anti-dilutive share-based awards excluded from diluted calculation			0.5		—		0.4		0.6

Contingently issuable shares of 0.3 million have been excluded from the diluted calculation as the vesting conditions have not been satisfied as of both October 29, 2016 and October 31, 2015. These shares relate to RSU awards issued in connection with the Company’s long-term incentive program.