Net (Loss) Income Per Share

9 Months Ended

Oct. 31, 2020

7. Net (Loss) Income Per Share

Basic Net (loss) income per share is Net (loss) income divided by the average number of common shares outstanding during the period. Diluted Net (loss) 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 (loss) income per share is as follows:

	Three Months Ended					Nine Months Ended
(Dollar and Shares in Millions, Except per Share Data)	October 31, 2020			November 2, 2019		October 31, 2020			November 2, 2019
Numerator—Net (loss) income	$	(12	)	$	123	$	(506	)	$	426
Denominator—Weighted-average shares:
Basic		154			156		154			158
Dilutive impact		—			1		—			1
Diluted		154			157		154			159
Net (loss) income per share:
Basic	$	(0.08	)	$	0.79	$	(3.28	)	$	2.69
Diluted	$	(0.08	)	$	0.78	$	(3.28	)	$	2.67

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

Three Months Ended

Nine Months Ended

(Shares in Millions)

October 31,

2020

November 2,

2019

October 31,

2020

November 2,

2019

Anti-dilutive shares