Earnings (Loss) Per Share

12 Months Ended

Jan. 28, 2023

Earnings (loss) per basic share is computed based on the weighted-average number of common shares outstanding. Earnings (loss) per diluted share include the weighted-average effect of dilutive restricted stock units, performance share units and options (collectively, “Dilutive Awards”) on the weighted-average shares outstanding.

On August 2, 2021, the Separation was achieved through the Former Parent's distribution of 100% of the shares of the Company's common stock to holders of the Former Parent's common stock as of the close of business on the record date of July 22, 2021. The Former Parent's stockholders of record received one share of the Company's common stock for every three shares of the Former Parent's common stock. As a result, on August 3, 2021, the Company had 88 million shares of common stock outstanding. This share amount is being utilized for the calculation of basic and diluted earnings (loss) per share for all periods presented prior to the Separation. After the Separation, actual outstanding shares are used to calculate both basic and diluted weighted-average number of common shares outstanding.

The following table provides the weighted-average shares utilized for the calculation of basic and diluted earnings (loss) per share for 2022, 2021 and 2020:


	2022	2021	2020
	(in millions)
Common Shares	82	88	88
Treasury Shares	—	—	—
Basic Shares	82	88	88
Effect of Dilutive Awards	2	2	—
Diluted Shares	84	90	88
Anti-dilutive Awards (a)	1	—	—

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(a)Shares underlying certain options, restricted stock units and performance share units were excluded from the calculation of diluted earnings (loss) per share because their inclusion would have been anti-dilutive.