Net Income Per Share

6 Months Ended

Jul. 29, 2023

8. Net Income Per Share

Basic net income per share is net income divided by the average number of common shares outstanding during the period. Diluted net income per share includes incremental shares assumed for share-based units and awards and stock warrants. Potentially dilutive shares include unvested restricted stock units and awards, performance share units, 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 per share is as follows:


	Three Months Ended		Six Months Ended
(Dollars and Shares in Millions, Except per Share Data)	July 29, 2023	July 30, 2022	July 29, 2023	July 30, 2022
Numerator—Net income	$58	$143	$72	$157
Denominator—Weighted-average shares:
Basic	110	127	110	127
Dilutive impact	1	1	1	2
Diluted	111	128	111	129
Net income per share:
Basic	$0.52	$1.13	$0.65	$1.24
Diluted	$0.52	$1.11	$0.65	$1.22

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


	Three Months Ended		Six Months Ended
(Shares in Millions)	July 29, 2023	July 30, 2022	July 29, 2023	July 30, 2022
Anti-dilutive shares	3	3	3	3