Earnings per Share

6 Months Ended

Jul. 30, 2011

Earnings per Share

5. Earnings per Share

ASC 260-10-45, Participating Securities and the Two-Class Method (“ASC 260-10-45”), addresses whether awards granted in unvested share-based payment transactions that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and therefore are included in computing earnings per share under the two-class method, as described in ASC 260, Earnings Per Share (“ASC 260”). Participating securities are securities that may participate in dividends with common stock and the two-class method is an earnings allocation formula that treats a participating security as having rights to earnings that would otherwise have been available to common shareholders. Under the two-class method, earnings for the period are allocated between common shareholders and other shareholders, based on their respective rights to receive dividends. Restricted stock awards granted to certain employees under the Company’s 2005 Stock Award and Incentive Plan (“2005 Plan”) are considered participating securities as these employees receive non-forfeitable dividends at the same rate as common stock. There were no participating securities outstanding during the 13 and 26 weeks ending July 30, 2011. During the 13 and 26 weeks ended July 31, 2010, the allocation of earnings to participating securities was not significant. The application of ASC 260-10-45 resulted in no change to basic or diluted income from continuing operations per common share for both the 13 and 26 weeks ended July 30, 2011 and July 31, 2010.

The following is a reconciliation between basic and diluted weighted average shares outstanding:

	13 Weeks Ended				26 Weeks Ended
(In thousands)	July 30, 2011		July 31, 2010		July 30, 2011		July 31, 2010
Weighted average common shares outstanding:
Basic number of common shares outstanding		194,909		201,764		194,800		204,238
Dilutive effect of stock options and non-vested restricted stock		1,669		1,389		1,826		2,192
Diluted number of common shares outstanding		196,578		203,153		196,626		206,430

Equity awards to purchase approximately 7.5 million and 7.2 million shares of common stock during the 13 and 26 weeks ended July 30, 2011, respectively, and approximately 8.4 million and 8.3 million shares of common stock during the 13 and 26 weeks ended July 31, 2010, respectively, were outstanding, but were not included in the computation of weighted average diluted common share amounts as the effect of doing so would be anti-dilutive.

Approximately 1.9 million shares of restricted stock units for both the 13 and 26 weeks ended July 30, 2011 and approximately 0.9 million shares of restricted stock units for both the 13 and 26 weeks ended July 31, 2010 were not included in the computation of weighted average diluted common share amounts because the number of shares ultimately issued is contingent on the Company’s performance compared to pre-established annual performance goals. Additionally, there were approximately 25,000 shares for the 13 weeks ended July 30, 2011 and 1.0 million and 33,000 shares for the 13 and 26 weeks ended July 31, 2010, respectively, of time-based restricted stock units that were outstanding, but not included in the computation of weighted average diluted common share amounts as the effect of doing so would have been anti-dilutive.