Net Income Per Share

9 Months Ended

Oct. 29, 2022

8. Net Income Per Share

Basic net income per share is net income divided by the average number of common shares outstanding during the period. Diluted net income per share includes incremental shares assumed for share-based awards and stock warrants. Potentially dilutive shares include stock options, unvested restricted stock units and awards, and warrants outstanding during the period, using the treasury stock method. Potentially dilutive shares are excluded from the computations of diluted earnings per share (“EPS”) if their effect would be anti-dilutive.

The information required to compute basic and diluted net income per share is as follows:


	Three Months Ended		Nine Months Ended
(Dollar and Shares in Millions, Except per Share Data)	October 29, 2022	October 30, 2021	October 29, 2022	October 30, 2021
Numerator—Net income	$97	$243	$254	$639
Denominator—Weighted-average shares:
Basic	118	145	124	151
Dilutive impact	1	2	2	2
Diluted	119	147	126	153
Net income per share:
Basic	$0.82	$1.67	$2.05	$4.24
Diluted	$0.82	$1.65	$2.02	$4.19

The following potential shares of common stock were excluded from the diluted net income per share calculation because their effect would have been anti-dilutive:


	Three Months Ended		Nine Months Ended
(Shares in Millions)	October 29, 2022	October 30, 2021	October 29, 2022	October 30, 2021
Anti-dilutive shares	3	3	3	3