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Earnings Per Share
 9 Months Ended
Oct. 27, 2012
Earnings Per Share

7. Earnings Per Share

 

The Company accounts for and discloses net earnings per share using the treasury stock method. The Company’s basic earnings per share is computed by dividing the Company’s reported net income for the period by the weighted-average number of common shares outstanding at the end of the period. The Company’s 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 Company’s basic and diluted weighted-average number of common shares outstanding as of October 27, 2012 and October 29, 2011, were as follows:

 

    Thirteen weeks ended     Thirty-nine weeks ended  
    October 27,     October 29,     October 27,     October 29,  
(in millions)    2012     2011     2012     2011  
Weighted-average common shares outstanding     151.0       152.3       151.4       153.4  
Effect of Dilution:                                 
Stock options and awards     2.9       1.3       2.6       1.4  
Weighted-average common shares assuming dilution     153.9       153.6       154.0       154.8  

 

Options to purchase 0.9 million and 4.1 million shares of common stock were not included in the computation of weighted-average common shares outstanding for the thirteen weeks ended October 27, 2012 and October 29, 2011, respectively. Options to purchase 0.7 million and 3.8 million shares of common stock were not included in the computation of weighted-average common shares outstanding for the thirty-nine weeks ended October 27, 2012 and October 29, 2011, respectively. These options were not included primarily because the exercise prices of the options were greater than the average market price of the common shares and, therefore, the effect would be antidilutive. As of October 27, 2012, contingently issuable shares of 0.2 million have not been included as the vesting conditions have not been satisfied.