Earnings Per Share

3 Months Ended

Apr. 29, 2017

9. 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 at the end of the period. 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
		April 29,		April 30,
		2017		2016
		(in millions, except per share data)
Net Income		$	180	$	191

Weighted-average common shares outstanding			131.4		136.5
Dilutive effect of potential common shares			1.2		1.3
Weighted-average common shares outstanding assuming dilution			132.6		137.8

Earnings per share - basic		$	1.37	$	1.40
Earnings per share - diluted		$	1.36	$	1.39

Anti-dilutive share-based awards excluded from diluted calculation			0.2		0.2

The Company adopted ASU 2016-09 during the first quarter of 2017. As a result, excess tax benefits and tax deficiencies are no longer included as assumed proceeds in the calculation of diluted shares outstanding. This change was adopted prospectively.

Contingently issuable shares of 0.4 million and 0.3 million have not been included as the vesting conditions have not been satisfied as of April 29, 2017 and April 30, 2016, respectively. These shares relate to RSU awards issued in connection with the Company’s long-term incentive program.