Earnings Per Share

6 Months Ended

Aug. 02, 2014

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

In accordance with relevant accounting guidance, unvested share-based payment awards that include non-forfeitable rights to dividends, whether paid or unpaid, are considered participating securities. As a result, such awards are required to be included in the calculation of earnings per common share pursuant to the “two-class” method. For us, participating securities are composed entirely of unvested restricted stock awards and PSUs that have met their relevant performance criteria.

Earnings per share (“EPS”) is determined using the two-class method, as it is more dilutive than the treasury stock method. Basic EPS excludes dilution and is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during the period, including participating securities. Diluted EPS reflects the dilutive effect of potential common shares from non-participating securities such as stock options and PSUs.

The following table sets forth the computation of basic and diluted EPS shown on the face of the accompanying condensed consolidated statements of income (in thousands, except per share amounts):

	Twenty-Six Weeks Ended						Thirteen Weeks Ended
	August 2, 2014			August 3, 2013			August 2, 2014			August 3, 2013
Numerator
Net income	$	70,008		$	94,710		$	30,126		$	43,588
Net income and dividends declared allocated to participating securities	(1,902		)	(2,612		)	(842		)	(1,284		)
Net income available to common shareholders	$	68,106		$	92,098		$	29,284		$	42,304
Denominator
Weighted average common shares outstanding – basic	148,584			157,379			148,694			156,589
Dilutive effect of non-participating securities	543			943			524			984
Weighted average common and common equivalent shares outstanding – diluted	149,127			158,322			149,218			157,573
Net income per common share:
Basic	$	0.46		$	0.58		$	0.20		$	0.27
Diluted	$	0.46		$	0.58		$	0.20		$	0.27

For the twenty-six weeks ended August 2, 2014 and August 3, 2013, 0.6 million and 1.1 million potential shares of common stock, respectively, were excluded from the diluted per share calculation relating to non-participating securities, because the effect of including these potential shares was antidilutive.

For the thirteen weeks ended August 2, 2014 and August 3, 2013, 0.6 million and 1.0 million potential shares of common stock, respectively, were excluded from the diluted per share calculation relating to non-participating securities, because the effect of including these potential shares was antidilutive.