Net Income Per Share

6 Months Ended

Jul. 30, 2022

NOTE 13—NET INCOME PER SHARE

The calculation of our net income per share is as follows:


	THREE MONTHS ENDED				SIX MONTHS ENDED
	JULY 30,			JULY 31,	JULY 30,		JULY 31,
	2022			2021	2022		2021

		(in thousands, except share and per share amounts)
Net income	$	122,275	$	226,746	$	322,986	$	357,402
Loss on extinguishment of debt		23,462				169,578
Net income available to common shareholders⁽¹⁾	$	145,737			$	492,564

Weighted-average shares—basic		24,475,373		21,166,638		23,541,955		21,084,941
Effect of dilutive stock-based awards		2,252,480		6,757,728		3,310,044		6,737,107
Effect of dilutive convertible senior notes⁽²⁾		414,370		4,054,732		982,736		3,772,507
Weighted-average shares—diluted		27,142,223		31,979,098		27,834,735		31,594,555
Basic net income per share	$	5.95	$	10.71	$	20.92	$	16.95
Diluted net income per share	$	5.37	$	7.09	$	17.70	$	11.31

(1)	Effective the first quarter of fiscal 2022 upon adoption of ASU 2020-06, the loss on extinguishment of debt related to convertible securities is added back to net income to calculate net income per share.

(2)

We adopted ASU 2020-06 in the first quarter of fiscal 2022, and the adoption requires the dilutive impact of the 2023 Notes and 2024 Notes for diluted net income per share purposes to be determined under the if-converted method which assumes share settlement of the entire convertible debt instrument. Prior to adoption of ASU 2020-06, we applied the treasury stock method to determine the dilutive impact of the 2023 Notes and 2024 Notes for diluted net income per share purposes.

The 2023 Notes and the 2024 Notes have an impact on our dilutive share count beginning at stock prices of $193.65 per share and $211.40 per share, respectively. The warrants associated with the 2023 Notes and 2024 Notes had an impact on our dilutive share count beginning at stock prices of $309.84 per share and $338.24 per share, respectively. The warrants associated with the 2023 Notes and 2024 Notes were repurchased in April 2022 and, as a result, no warrant instruments are outstanding as of July 30, 2022. Accordingly, the warrants have no impact on our dilutive shares post-repurchase. Refer to Note 9—Convertible Senior Notes.

The following number of options and restricted stock units were excluded from the calculation of diluted net income per share because their inclusion would have been anti-dilutive:


	THREE MONTHS ENDED		SIX MONTHS ENDED
	JULY 30,	JULY 31,	JULY 30,	JULY 31,
	2022	2021	2022	2021
Options	1,079,767	82,562	1,083,158	68,918
Restricted stock units	19,468	—	19,510	—
Total anti-dilutive stock-based awards	1,099,235	82,562	1,102,668	68,918