Net Income Per Share

9 Months Ended

Nov. 02, 2024

7. Net Income Per Share

Basic net income per share is net income divided by the average number of common shares outstanding during the period. Diluted net income per share includes incremental shares assumed for stock-based awards and stock warrants. The potentially dilutive shares outstanding during the period include unvested restricted stock units, unvested restricted stock awards, and warrants, which utilize the treasury stock method, as well as unvested

performance share units that utilize the contingently issuable share method. Potentially dilutive shares are excluded from the computations of diluted earnings per share if their effect would be anti-dilutive.

The information required to compute basic and diluted net income per share is as follows:


	Three Months Ended		Nine Months Ended
(Dollars and Shares in Millions, Except per Share Data)	November 2, 2024	October 28, 2023	November 2, 2024	October 28, 2023
Numerator—Net income	$22	$59	$61	$131
Denominator—Weighted-average shares:
Basic	111	110	111	110
Dilutive impact	1	1	1	1
Diluted	112	111	112	111
Net income per share:
Basic	$0.20	$0.54	$0.55	$1.19
Diluted	$0.20	$0.53	$0.55	$1.18

The following potential shares of common stock were excluded from the diluted net income per share calculation because their effect would have been anti-dilutive:


	Three Months Ended		Nine Months Ended
(Shares in Millions)	November 2, 2024	October 28, 2023	November 2, 2024	October 28, 2023
Anti-dilutive shares	5	3	5	3