Earnings Per Common Share

6 Months Ended

Aug. 01, 2020

Basic earnings per common share is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted earnings per common share is computed based on the weighted average number of shares of common stock outstanding, plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include shares the Company could be obligated to issue from its Convertible Senior Notes and warrants (see Note 6 for further discussion) and stock-based awards, such as stock options and restricted stock.

The computations for basic and diluted earnings per common share were as follows for the periods presented (in thousands, except per share data):


	13 Weeks Ended						26 Weeks Ended
	August 1, 2020		August 3, 2019		August 1, 2020		August 3, 2019
Net income	$	276,843	$	112,534	$	133,421	$	170,059

Weighted average common shares outstanding - basic	84,130		88,080		83,932		90,483
Dilutive effect of stock-based awards	3,577		1,320		2,868		1,411
Dilutive effect of Convertible Senior Notes and warrants	1,119		—		560		—
Weighted average common shares outstanding - diluted	88,826		89,400		87,360		91,894

Earnings per common share - basic	$	3.29	$	1.28	$	1.59	$	1.88
Earnings per common share - diluted	$	3.12	$	1.26	$	1.53	$	1.85

Potentially dilutive shares are excluded from the computation of earnings per share if their effect is anti-dilutive. Anti-dilutive options and restricted stock awards excluded from the calculation of earnings per share for the 13 weeks ended August 1, 2020 and August 3, 2019 were 2.8 million and 3.2 million, respectively. Anti-dilutive options and restricted stock excluded from the calculation of earnings per share for the 26 weeks ended August 1, 2020 and August 3, 2019 were 3.1 million and 3.2 million, respectively. Shares to be provided to the Company from its bond hedge purchased concurrently with its issuance of Convertible Senior Notes are anti-dilutive and are not included in its diluted shares.