Earnings per share

12 Months Ended

Feb. 01, 2014

Notes to Financial Statements [Abstract]

Earnings per share

Earnings per Share

Basic earnings per share is calculated by dividing net income associated with common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share assumes the issuance of additional shares of common stock by the Company upon exercise of all outstanding stock options and contingently issuable securities if the effect is dilutive, in accordance with the treasury stock method.

The determination and reporting of earnings per share requires the inclusion of time- and performance-based restricted stock as participating securities, since they have the right to share in dividends, if declared, equally with common shareholders. During periods of net income, participating securities are allocated a proportional share of net income determined by dividing total weighted average participating securities by the sum of total weighted average common shares and participating securities (“the two-class method”). During periods of net income, participating securities have the effect of diluting both basic and diluted earnings per share. During periods of net loss, no effect is given to participating securities, since they do not share in the losses of the Company.

The following table presents a reconciliation of basic and diluted earnings per share for the fiscal years ended February 1, 2014, February 2, 2013 and January 28, 2012, respectively.

	Fiscal Year Ended
	February 1, 2014					February 2, 2013					January 28, 2012
	(in thousands, except per share amounts)
Basic Earnings per Share	Net Income		Shares	Per Share Amount		Net Income		Shares	Per Share Amount		Net Income		Shares	Per Share Amount
Net income	$	102,430				$	102,585				$	86,566
Less net income associated with participating securities	1,983					1,470					1,455
Basic earnings per share	$	100,447	45,490	$	2.21	$	101,115	47,494	$	2.13	$	85,111	51,200	$	1.66
Diluted Earnings per Share
Net income	$	102,430				$	102,585				$	86,566
Less net income associated with participating securities	1,963					1,452					1,432
Effect of dilutive securities			465					600					829
Diluted earnings per share	$	100,467	45,955	$	2.19	$	101,133	48,094	$	2.10	$	85,134	52,029	$	1.64

Non-participating securities (stock options) representing 563,480, 1,381,750 and 2,028,204 shares of common stock were excluded from the above computation of weighted average shares for diluted earnings per share for Fiscal 2013, Fiscal 2012 and Fiscal 2011, respectively, due to their antidilutive effect, since their exercise prices exceeded the average market price of the common shares during the periods.

In addition, non-participating securities (performance-based restricted units) representing 11,918 and 14,125 shares of common stock were excluded from the above computations of weighted-average shares for diluted earnings per share for Fiscal 2012 and Fiscal 2011, respectively, due to the fact that they are contingently issuable securities whose contingency was not met at certain dates during the fiscal year. No such shares were excluded from the computation of weighted average shares for diluted earnings per share for Fiscal 2013.