EARNINGS (LOSS) PER COMMON SHARE

3 Months Ended

May 04, 2014

EARNINGS (LOSS) PER COMMON SHARE

EARNINGS (LOSS) PER COMMON SHARE

NOTE 7—EARNINGS (LOSS) PER COMMON SHARE

The following earnings (loss) per common share is provided for HD Supply Holdings, Inc.

Basic earnings (loss) per common share is computed by dividing net income (loss) by the weighted-average common shares outstanding during the respective periods. Diluted earnings (loss) per common share is computed by dividing net income (loss) by the sum of the weighted-average common shares outstanding and all dilutive potential common shares outstanding during the respective periods.  Diluted loss per common share equals basic loss per common share for the periods presented, as the effect of stock options, restricted stock, and restricted stock units are anti-dilutive because the Company incurred net losses.

The following table sets forth the computation of basic and diluted earnings (loss) per share of common stock for the three months ended May 4, 2014 and May 5, 2013 (in millions, except per share and share data):

	Three Months Ended
	May 4, 2014			May 5, 2013
Income (loss) from continuing operations	$	(1	)	$	(130	)
Income (loss) from discontinued operations, net of tax	(11		)	(1		)
Net income (loss)	$	(12	)	$	(131	)
Weighted average common shares outstanding (in thousands) (1)
Basic & Diluted	192,859			130,578
Basic & Diluted earnings (loss) per share(2):
Income (loss) from continuing operations	$	(0.01	)	$	(1.00	)
Income (loss) from discontinued operations, net of tax	$	(0.06	)	$	(0.01	)
Net income (loss)	$	(0.06	)	$	(1.00	)

(1)	Weighted average common shares outstanding in the three months ended May 4, 2014 reflect the issuance of 61 million shares on July 2, 2013 in connection with Holdings’ initial public offering.
(2)	May not foot due to rounding.

The following table provides the securities that could potentially dilute basic earnings per share in the future, but were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive (in thousands):

	Three Months Ended
	May 4, 2014	May 5, 2013
Stock options	12,901	14,718
Restricted stock & restricted stock units	1,747	—