Earnings Per Share

9 Months Ended

Oct. 31, 2020

Earnings Per Share [Abstract]

Earnings Per Share

12. Earnings Per Share

We account for earnings per share (“EPS”) using the treasury stock method. Basic EPS is computed by dividing net income for the period by the weighted-average number of common shares outstanding at the end of the period. Diluted earnings per share reflects the weighted-average number of common shares outstanding during the period used in the basic EPS computation plus dilutive common stock equivalents. The computation of diluted earnings per share does not assume conversion, exercise, or contingent issuance of securities that would have an anti-dilutive effect on EPS.

The computation of basic and diluted EPS is as follows:

	Thirteen weeks ended				Thirty-nine weeks ended
	October 31,		November 2,		October 31,		November 2,
(in millions, except per share data)	2020		2019		2020		2019
Net income	$	265	$	125	$	200	$	357
Weighted-average common shares outstanding		104.4		106.9		104.4		110.0
Dilutive effect of potential common shares		0.9		0.3		0.7		0.5
Weighted-average common shares outstanding assuming dilution		105.3		107.2		105.1		110.5
Earnings per share - basic	$	2.54	$	1.16	$	1.92	$	3.24
Earnings per share - diluted	$	2.52	$	1.16	$	1.91	$	3.23
Anti-dilutive share-based awards excluded from diluted calculation		2.5		2.4		2.7		2.2

Restricted stock units related to our long-term incentive programs of 0.5 million and 0.7 million have been excluded from diluted weighted-average shares for the periods ended October 31, 2020 and November 2, 2019, respectively. The issuance of these shares are contingent on our performance metrics as compared to the pre-established performance goals, which have not been achieved.