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Earnings Per Share
 3 Months Ended
May 03, 2014
Earnings Per Share [Abstract]  
Earnings Per Share

Note 3.  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 the 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):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Thirteen Weeks Ended

 

 

May 3, 2014

 

May 4, 2013

 

 

 

 

 

 

 

 

 

 

Numerator

 

 

 

 

 

 

Net income

 

$
39,882 

 

$
51,122 

Net income and dividends declared allocated to

    participating securities

 

 
(1,055)

 

 
(1,187)

Net income available to common shareholders

 

$
38,827 

 

$
49,935 

 

 

 

 

 

 

 

Denominator

 

 

 

 

 

 

Weighted average common shares outstanding – basic

 

 
148,475 

 

 
158,584 

Dilutive effect of non-participating securities

 

 
569 

 

 
952 

Weighted average common and common equivalent

   shares outstanding – diluted

 

 
149,044 

 

 
159,536 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

Basic

 

$
0.26 

 

$
0.31 

Diluted

 

$
0.26 

 

$
0.31 

 

 

For the thirteen weeks ended May 3, 2014 and May 4, 2013,  0.7 million and 1.6 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.