Net Income (Loss) Per Share

6 Months Ended

Aug. 01, 2020

6. Net Income (Loss) Per Share

Basic Net income (loss) per share is Net income (loss) divided by the average number of common shares outstanding during the period. Diluted Net income (loss) per share includes incremental shares assumed for share-based awards and stock warrants. Potentially dilutive shares include stock options, unvested restricted stock units and awards, and warrants outstanding during the period, using the treasury stock method. Potentially dilutive shares are excluded from the computations of diluted earnings per share (“EPS”) if their effect would be anti-dilutive.

The information required to compute basic and diluted Net income (loss) per share is as follows:

	Three Months Ended				Six Months Ended
(Dollar and Shares in Millions, Except per Share Data)	August 1, 2020		August 3, 2019		August 1, 2020			August 3, 2019
Numerator—Net income (loss)	$	47	$	241	$	(494	)	$	303
Denominator—Weighted-average shares:
Basic		154		159		154			160
Dilutive impact		1		—		—			1
Diluted		155		159		154			161
Net income (loss) per share:
Basic	$	0.31	$	1.52	$	(3.21	)	$	1.90
Diluted	$	0.30	$	1.51	$	(3.21	)	$	1.89

The following potential shares of common stock were excluded from the diluted Net income (loss) per share calculation because their effect would have been anti-dilutive:

Three Months Ended

Six Months Ended

(Shares in Millions)

August 1, 2020

August 3, 2019

August 1, 2020

August 3, 2019

Anti-dilutive shares