Earnings Per Share

3 Months Ended

Jan. 28, 2017

Basic earnings per share is computed based only on the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed using the weighted average number of common shares outstanding during the period, plus the dilutive effect of potential future issuances of common stock relating to stock option programs and other potentially dilutive securities using the treasury stock method. In calculating diluted earnings per share, the dilutive effect of stock options and restricted stock units is computed using the average market price for the respective period. In addition, the assumed proceeds under the treasury stock method include the average unrecognized compensation expense of stock options that are in-the-money and restricted stock units. This results in the “assumed” buyback of additional shares, thereby reducing the dilutive impact of in-the-money stock options. Potential shares related to certain of the Company’s outstanding stock options and restricted stock units were excluded because they were anti-dilutive. Those potential shares, determined based on the weighted average exercise prices during the respective periods, related to the Company’s outstanding stock options could be dilutive in the future.

The following table sets forth the computation of basic and diluted earnings per share:



	Three Months Ended
	January 28, 2017		January 30, 2016
Net Income	$	217,129	$	164,504
Basic shares:
Weighted-average shares outstanding	308,786		311,166
Earnings per share basic:	$	0.70	$	0.53
Diluted shares:
Weighted-average shares outstanding	308,786		311,166
Assumed exercise of common stock equivalents	4,290		3,627
Weighted-average common and common equivalent shares	313,076		314,793
Earnings per share diluted:	$	0.69	$	0.52
Anti-dilutive shares related to:
Outstanding stock options	66		2,597