Net Income Per Share

3 Months Ended

Apr. 29, 2023

Earnings Per Share [Abstract]

Net Income Per Share

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 units and awards and stock warrants. Potentially dilutive shares include unvested restricted stock units and awards, performance share units, 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:

	Quarter Ended
(Dollars and Shares in Millions, Except per Share Data)	April 29, 2023	April 30, 2022
Numerator—Net income	$14	$14
Denominator—Weighted-average shares:
Basic	110	127
Dilutive impact	1	2
Diluted	111	129
Net income per share:
Basic	$0.13	$0.11
Diluted	$0.13	$0.11

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:

	Quarter Ended
(Shares in Millions)	April 29, 2023	April 30, 2022
Anti-dilutive shares	3	3