Earnings per Share

9 Months Ended

Oct. 29, 2022

5. Earnings per Share

The following is a reconciliation between the amounts used in the calculation of basic and diluted earnings per share:


	13 Weeks Ended				39 Weeks Ended
(In thousands)	October 29, 2022		October 30, 2021		October 29, 2022		October 30, 2021
Numerator:
Net income and numerator for basic EPS	$	81,272	$	152,224	$	70,547	$	369,201
Add: Interest expense, net of tax, related to the 2025 Notes (1)		529		—		4,897		—
Numerator for diluted EPS	$	81,801	$	152,224	$	75,444	$	369,201

Denominator:
Denominator for basic EPS - weighted average shares		186,305		167,637		178,637		168,062
Add: Dilutive effect of the 2025 Notes (1)		8,418		33,687		27,280		34,616
Add: Dilutive effect of stock options and non-vested restricted stock		1,053		3,689		1,582		4,354
Denominator for diluted EPS - adjusted weighted average shares		195,776		205,013		207,499		207,032
Anti-dilutive shares (2)		4,221		286		2,390		172

(1)

During the 39 weeks ended October 29, 2022, the Company adopted ASU 2020-06 under the modified retrospective method, which requires the Company to utilize the "if-converted" method of calculated diluted EPS. Accordingly, we did not restate financial information for the 39 weeks ended October 30, 2021. Refer to Note 2 to the Consolidated Financial Statements for additional information regarding the impact of the adoption of ASU 2020-06.

(2)

For all periods presented, anti-dilutive shares relate to stock options and unvested restricted stock.

Refer to Notes 8 and 9 to the Consolidated Financial Statements for additional information regarding the 2025 Notes and share-based compensation, respectively.

On June 3, 2022, the Company entered into an accelerated share repurchase agreement (the “ASR Agreement”) with JPMorgan Chase Bank (“JPM”). Pursuant to the terms of the ASR Agreement, on June 3, 2022, the Company paid $200.0 million in cash and received an initial delivery of 13.4 million shares of its common stock on June 3, 2022. At final settlement, on July 28, 2022, an additional 3.7 million shares were received. The cumulative repurchase under the ASR Agreement was 17.0 million shares repurchased at an average price per share of $11.75. The aforementioned shares have been recorded as treasury stock.