Earnings Per Share

3 Months Ended

Apr. 29, 2017

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 shareholders 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
	April 29, 2017			April 30, 2016

Numerator
Net income	$	33,619		$	31,084
Net income and dividends declared allocated to participating securities	(741		)	(646		)
Net income available to common shareholders	$	32,878		$	30,438
Denominator
Weighted average common shares outstanding – basic	126,050			131,594
Dilutive effect of non-participating securities	53			95
Weighted average common and common equivalent shares outstanding – diluted	126,103			131,689
Net income per share:
Basic	$	0.26		$	0.23
Diluted	$	0.26		$	0.23

For the thirteen weeks ended April 29, 2017 and April 30, 2016, 0.4 million and 0.9 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.