Earnings Per Share

3 Months Ended

May 03, 2014

Earnings Per Share [Abstract]

Earnings Per Share

7. 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 reported 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
	May 3,		May 4,
(in millions)	2014		2013
Weighted-average common shares outstanding		145.4		150.4
Effect of Dilution:
Stock options and awards		2.2		2.3
Weighted-average common shares assuming dilution		147.6		152.7

Options to purchase 0.3 million and 0.5 million shares of common stock were not included in the computation for the thirteen weeks ended May 3, 2014 and May 4, 2013, 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 have been antidilutive. Contingently issuable shares of 0.4 million and 0.5 million have not been included as the vesting conditions have not been satisfied as of May 3, 2014 and May 4, 2013, respectively.