EARNINGS PER SHARE

3 Months Ended

Apr. 30, 2016

5. EARNINGS PER SHARE

The Company’s unvested restricted stock awards contain non-forfeitable rights to dividends and meet the criteria of a participating security as defined by ASC 260, “Earnings Per Share.” Under the two-class method, net income per share is computed by dividing net income allocated to common shareholders by the weighted average number of common shares outstanding for the period. In applying the two-class method, net income is allocated to both common and participating securities based on their respective weighted-average shares outstanding for the period. Diluted earnings per share is computed by dividing income available to common stockholders by the weighted-average common shares outstanding plus the potential dilutive impact from the exercise of stock options. Common equivalent shares are excluded from the computation if their effect is anti-dilutive. There were 1.9 million and 0.2 million anti-dilutive shares during the first quarters of fiscal 2016 and fiscal 2015, respectively.

The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data):


	13 Weeks Ended
	April 30,		May 2,
	2016		2015
Basic earnings per common share:
Net income	$	70,765	$	66,738
Less income related to unvested restricted shares		(476)		(290)
Income available to common stockholders - Basic	$	70,289	$	66,448

Weighted-average common shares outstanding - Basic		206,994		205,632

Basic earnings per common share	$	0.34	$	0.32

Diluted earnings per common share:
Net income	$	70,765	$	66,738
Less income related to unvested restricted shares		(471)		(285)
Income available to common shareholders - Diluted	$	70,294	$	66,453

Weighted-average common shares outstanding - Basic		206,994		205,632
Effect of dilutive stock options		1,979		3,418
Weighted-average common shares outstanding - Diluted		208,973		209,050

Diluted earnings per common share	$	0.34	$	0.32