Earnings Per Share

3 Months Ended

Apr. 30, 2016

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 when 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):



	Thirteen Weeks Ended
	April 30, 2016			May 2, 2015

Numerator
Net income	$	31,084		$	32,525
Net income and dividends declared allocated to participating securities	(646		)	(786		)
Net income available to common shareholders	$	30,438		$	31,739
Denominator
Weighted average common shares outstanding – basic	131,594			143,378
Dilutive effect of non-participating securities	95			393
Weighted average common and common equivalent shares outstanding – diluted	131,689			143,771
Net income per common share:
Basic	$	0.23		$	0.22
Diluted	$	0.23		$	0.22

For the thirteen weeks ended April 30, 2016 and May 2, 2015, 0.9 million and 0.7 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.