Earnings per share

12 Months Ended

Jan. 31, 2015

Notes to Financial Statements [Abstract]

Earnings per share

Earnings per Share

Basic earnings per share is calculated by dividing net income associated with common shareholders 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-vesting 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 January 31, 2015, February 1, 2014 and February 2, 2013, respectively.

	Fiscal Year Ended
	January 31, 2015					February 1, 2014					February 2, 2013
	(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	$	67,980				$	102,430				$	102,585
Less net income associated with participating securities	1,376					1,983					1,470
Basic earnings per share	$	66,604	45,172	$	1.47	$	100,447	45,490	$	2.21	$	101,115	47,494	$	2.13
Diluted Earnings per Share
Net income	$	67,980				$	102,430				$	102,585
Less net income associated with participating securities	1,363					1,963					1,452
Effect of dilutive securities			436					465					600
Diluted earnings per share	$	66,617	45,608	$	1.46	$	100,467	45,955	$	2.19	$	101,133	48,094	$	2.10

Non-participating securities (stock options) representing 24,925, 563,480 and 1,381,750 shares of common stock were excluded from the above computation of weighted average shares for diluted earnings per share for Fiscal 2014, Fiscal 2013 and Fiscal 2012, 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 shares of common stock were excluded from the above computations of weighted-average shares for diluted earnings per share for Fiscal 2012, 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 in Fiscal 2014 or Fiscal 2013.