Earnings Per Share

6 Months Ended

Jul. 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						Twenty-Six Weeks Ended
	July 30, 2016			August 1, 2015			July 30, 2016			August 1, 2015

Numerator
Net income	$	23,039		$	2,122		$	54,123		$	34,647
Net income and dividends declared allocated to participating securities	(506		)	(28		)	(1,155		)	(804		)
Net income available to common shareholders	$	22,533		$	2,094		$	52,968		$	33,843
Denominator
Weighted average common shares outstanding – basic	129,215			138,606			130,406			140,992
Dilutive effect of non-participating securities	147			355			110			347
Weighted average common and common equivalent shares outstanding – diluted	129,362			138,961			130,516			141,339
Net income per common share:
Basic	$	0.17		$	0.02		$	0.41		$	0.24
Diluted	$	0.17		$	0.02		$	0.41		$	0.24

For the thirteen weeks weeks ended July 30, 2016 and August 1, 2015, 0.8 million and 0.3 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 twenty-six weeks ended July 30, 2016 and August 1, 2015, 0.9 million and 0.8 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.