Net Income Per Share

9 Months Ended

Oct. 28, 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 net income per share 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		Nine Months Ended
(Dollars and Shares in Millions, Except per Share Data)	October 28, 2023	October 29, 2022	October 28, 2023	October 29, 2022
Numerator—Net income	$59	$97	$131	$254
Denominator—Weighted-average shares:
Basic	110	118	110	124
Dilutive impact	1	1	1	2
Diluted	111	119	111	126
Net income per share:
Basic	$0.54	$0.82	$1.19	$2.05
Diluted	$0.53	$0.82	$1.18	$2.02

The following potentially dilutive 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		Nine Months Ended
(Shares in Millions)	October 28, 2023	October 29, 2022	October 28, 2023	October 29, 2022
Anti-dilutive shares	3	3	3	3