Earnings Per Share

3 Months Ended

May 01, 2021

Earnings Per Share [Abstract]

Earnings Per Share

10. Earnings Per Share

We account for earnings per share (“EPS”) using the treasury stock method. Basic EPS is computed by dividing net income (loss) 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
	May 1,		May 2,
(in millions, except per share data)	2021		2020
Net income (loss)	$	202	$	(110)
Weighted-average common shares outstanding		103.6		104.3
Dilutive effect of potential common shares		1.4		—
Weighted-average common shares outstanding assuming dilution		105.0		104.3
Earnings (loss) per share - basic	$	1.95	$	(1.06)
Earnings (loss) per share - diluted	$	1.93	$	(1.06)
Anti-dilutive share-based awards excluded from diluted calculation		1.7		2.7

Performance stock units related to our long-term incentive programs of 0.8 million and 0.5 million have been excluded from diluted weighted-average shares for the periods ended May 1, 2021 and May 2, 2020, 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.