Earnings Per Share

9 Months Ended

Nov. 02, 2019

Earnings Per Share [Abstract]

Earnings Per Share

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 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				Thirty-nine weeks ended
	November 2,		November 3,		November 2,		November 3,
	2019		2018		2019		2018
	(in millions, except per share data)
Net Income	$	125	$	130	$	357	$	383
Weighted-average common shares outstanding		106.9		114.5		110.0		116.6
Dilutive effect of potential common shares		0.3		0.5		0.5		0.5
Weighted-average common shares outstanding assuming dilution		107.2		115.0		110.5		117.1
Earnings per share - basic	$	1.16	$	1.14	$	3.24	$	3.29
Earnings per share - diluted	$	1.16	$	1.14	$	3.23	$	3.28
Anti-dilutive share-based awards excluded from diluted calculation		2.4		2.0		2.2		1.9

Restricted stock units related to the Company’s long-term incentive program of 0.7 million and 1.1 million have been excluded from diluted weighted-average shares for the periods ended November 2, 2019 and November 3, 2018, respectively. The issuance of these shares are contingent on the Company’s performance metrics as compared to the pre-established performance goals, which have not been achieved.