Earnings Per Share

9 Months Ended

Oct. 29, 2016

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 when 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 operations (in thousands, except per share amounts):



	Thirteen Weeks Ended						Thirty-Nine Weeks Ended
	October 29, 2016			October 31, 2015			October 29, 2016			October 31, 2015

Numerator
Net income (loss)	$	23,598		$	(11,610	)	$	77,721		$	23,037
Net income and dividends declared allocated to participating securities	(502		)	—			(1,677		)	(492		)
Net income (loss) available to common shareholders	$	23,096		$	(11,610	)	$	76,044		$	22,545
Denominator
Weighted average common shares outstanding – basic	128,753			136,172			129,830			139,386
Dilutive effect of non-participating securities	243			—			169			338
Weighted average common and common equivalent shares outstanding – diluted	128,996			136,172			129,999			139,724
Net income (loss) per common share:
Basic	$	0.18		$	(0.09	)	$	0.59		$	0.16
Diluted	$	0.18		$	(0.09	)	$	0.58		$	0.16

For the thirteen weeks weeks ended October 29, 2016 and October 31, 2015, 0.7 million and 0.3 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 thirty-nine weeks ended October 29, 2016 and October 31, 2015, 0.9 million and 1.3 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.