11. 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				Twenty-six weeks ended
	August 4,		July 29,		August 4,		July 29,
	2018		2017		2018		2017
	(in millions, except per share data)
Net Income	$	88	$	51	$	253	$	231

Weighted-average common shares outstanding		116.6		131.3		117.7		131.3
Dilutive effect of potential common shares		0.5		0.7		0.4		1.0
Weighted-average common shares outstanding assuming dilution		117.1		132.0		118.1		132.3

Earnings per share - basic	$	0.76	$	0.39	$	2.15	$	1.76
Earnings per share - diluted	$	0.75	$	0.39	$	2.14	$	1.74

Anti-dilutive option awards excluded from diluted calculation		2.0		1.7		1.7		0.8

Additionally, shares of 1.1 million and 0.4 million as of August 4, 2018 and July 29, 2017, respectively, have been excluded from diluted weighted-average shares as the number of shares that will be issued is contingent on the Company’s performance metrics as compared to the pre-established performance goals which have not been achieved as of August 4, 2018 and July 29, 2017. These shares relate to restricted stock units issued in connection with the Company’s long-term incentive program.