Earnings Per Share

9 Months Ended

Oct. 31, 2015

In accordance with relevant accounting guidance, unvested share-based payment awards that include non-forfeitable rights to dividends, whether paid or unpaid, are considered participating securities. As a result, such awards are required to be included in the calculation of earnings per common share pursuant to the “two-class” method. For us, participating securities are composed entirely of unvested restricted stock awards and PSUs that have met their relevant performance criteria.

Earnings per share (“EPS”) is determined using the two-class method, as it is more dilutive than the treasury stock method. Basic EPS excludes dilution and is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during the period, including participating securities. Diluted EPS reflects the dilutive effect of potential common shares from non-participating securities such as stock options and PSUs.

The following table sets forth the computation of basic and diluted EPS shown on the face of the accompanying condensed consolidated statements of operations (in thousands, except per share amounts):



	Thirty-Nine Weeks Ended						Thirteen Weeks Ended
	October 31, 2015			November 1, 2014			October 31, 2015			November 1, 2014

Numerator
Net income (loss)	$	23,037		$	96,471		$	(11,610	)	$	26,463
Net income and dividends declared allocated to participating securities	(492		)	(2,648		)	—			(745		)
Net income (loss) available to common shareholders	$	22,545		$	93,823		$	(11,610	)	$	25,718
Denominator
Weighted average common shares outstanding – basic	139,386			148,577			136,172			148,564
Dilutive effect of non-participating securities	338			516			—			473
Weighted average common and common equivalent shares outstanding – diluted	139,724			149,093			136,172			149,037
Net income (loss) per common share:
Basic	$	0.16		$	0.63		$	(0.09	)	$	0.17
Diluted	$	0.16		$	0.63		$	(0.09	)	$	0.17

For the thirty-nine weeks ended October 31, 2015 and November 1, 2014, 1.3 million and 0.6 million potential shares of common stock, respectively, were excluded from the diluted per share calculation relating to non-participating securities, because the effect of including these potential shares was antidilutive.

For the thirteen weeks ended October 31, 2015 and November 1, 2014, 0.3 million and 0.5 million potential shares of common stock, respectively, were excluded from the diluted per share calculation relating to non-participating securities, because the effect of including these potential shares was antidilutive.