Earnings per Share

9 Months Ended

Oct. 28, 2023

5. Earnings per Share

The following is a reconciliation between basic and diluted weighted average shares outstanding:


	13 Weeks Ended				39 Weeks Ended
(In thousands)	October 28, 2023		October 29, 2022		October 28, 2023		October 29, 2022
Numerator:
Net income and numerator for basic EPS	$	96,700	$	81,272	$	163,722	$	70,547
Add: Interest expense, net of tax, related to the 2025 Notes (1)		-		529		58		4,897
Numerator for diluted EPS	$	96,700	$	81,801	$	163,780	$	75,444

Denominator:
Denominator for basic EPS - weighted average shares		195,343		186,305		195,467		178,637
Add: Dilutive effect of the 2025 Notes (1)		—		8,418		278		27,280
Add: Dilutive effect of stock options and non-vested restricted stock		3,024		1,053		2,224		1,582
Denominator for diluted EPS - adjusted weighted average shares		198,367		195,776		197,969		207,499
Anti-dilutive shares (2)		1,816		4,221		1,861		2,390

(1) During the 39 weeks ended October 29, 2022, the Company adopted ASU 2020-06. The Company utilizes the "if-converted" method of calculating diluted EPS. Refer to Note 2 to the Consolidated Financial Statements for additional information regarding the impact of the adoption of ASU 2020-06.

(2) For all periods presented, anti-dilutive shares relate to stock options and unvested restricted stock.

Refer to Notes 8 and 9 to the Consolidated Financial Statements for additional information regarding the 2025 Notes and share-based compensation, respectively.

On June 3, 2022, the Company entered into an accelerated share repurchase agreement (the ASR Agreement) with JPMorgan Chase Bank (JPM). Pursuant to the terms of the ASR Agreement, on June 3, 2022, the Company paid $200.0 million in cash and received an initial delivery of 13.4 million shares of its common stock on June 3, 2022. At final settlement, on July 28, 2022, an additional 3.7 million shares were received. The cumulative repurchase under the ASR Agreement was 17.0 million shares repurchased at an average price per share of $11.75. The aforementioned shares have been recorded as treasury stock.