Earnings Per Common Share

6 Months Ended

Jul. 31, 2021

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, and stock-based awards, such as stock options and restricted stock. Dilutive potential common shares are excluded from the computation of earnings per share if their effect is anti-dilutive.

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
	July 31, 2021		August 1, 2020		July 31, 2021		August 1, 2020
Net income	$	495,509	$	276,843	$	857,265	$	133,421

Weighted average common shares outstanding - basic	84,512		84,130		84,631		83,932
Dilutive effect of stock-based awards	6,297		3,577		6,352		2,868
Dilutive effect of Convertible Senior Notes and warrants	18,462		1,119		16,658		560
Weighted average common shares outstanding - diluted	109,271		88,826		107,641		87,360

Earnings per common share - basic	$	5.86	$	3.29	$	10.13	$	1.59
Earnings per common share - diluted	$	4.53	$	3.12	$	7.96	$	1.53
Stock-based awards excluded from diluted shares	2		2,796		82		3,090

For the 13 weeks and 26 weeks ended July 31, 2021, the dilutive effect of the Convertible Senior Notes includes approximately 10.7 million and 9.9 million shares, respectively, that are designed to be offset at settlement by shares delivered from the bond hedge purchased by the Company. The shares provided by the bond hedge are anti-dilutive; accordingly, they are not treated as a reduction to diluted weighted average shares outstanding for any periods presented.