Earnings Per Share

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 the Company, participating securities are comprised entirely of unvested restricted stock awards and performance-based restricted stock units (“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 shareholders 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, PSUs and restricted stock units.

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						Thirty-Nine Weeks Ended
	October 28, 2017			October 29, 2016			October 28, 2017			October 29, 2016

Numerator
Net income	$	16,690		$	23,598		$	73,025		$	77,721
Net income and dividends declared allocated to participating securities	(394		)	(502		)	(1,683		)	(1,677		)
Net income available to common shareholders	$	16,296		$	23,096		$	71,342		$	76,044
Denominator
Weighted average common shares outstanding – basic	124,957			128,753			125,550			129,830
Dilutive effect of non-participating securities	32			243			41			169
Weighted average common and common equivalent shares outstanding – diluted	124,989			128,996			125,591			129,999
Net income per share:
Basic	$	0.13		$	0.18		$	0.57		$	0.59
Diluted	$	0.13		$	0.18		$	0.57		$	0.58

For the thirteen weeks ended October 28, 2017 and October 29, 2016, 0.7 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.

For the thirty-nine weeks ended October 28, 2017 and October 29, 2016, 0.7 million and 0.9 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.