Note 9 — Earnings Per Share

Basic earnings per share is computed by dividing net earnings available to common shareholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share include the effect of conversions of stock options and stock-settled SARs. For all years presented, the Company used the two-class method to calculate earnings per share. Earnings per share has been computed as follows:


	13 Weeks Ended
	April 30,		May 1,
(dollars in millions, except per share amounts; shares in thousands)	2011		2010

Net earnings attributable to Collective Brands, Inc.	$	26.4	$	54.2
Less: net earnings allocated to participating securities⁽¹⁾		0.3		0.8

Net earnings available to common shareholders	$	26.1	$	53.4

Weighted average shares outstanding — basic		60,655		63,421
Net effect of dilutive stock options		195		395
Net effect of dilutive stock-settled SARs		840		806

Weighted average shares outstanding — diluted		61,690		64,622


Basic earnings per share attributable to common shareholders	$	0.43	$	0.84
Diluted earnings per share attributable to common shareholders	$	0.42	$	0.83


⁽¹⁾		Net earnings allocated to participating securities is calculated based upon a weighted average percentage of participating securities in relation to total shares outstanding.

The Company excluded approximately 3.1 million stock options and stock-settled SARs from the calculation of diluted earnings per share for the thirteen weeks ended April 30, 2011 and approximately 1.9 million stock options and stock-settled SARs from the calculation of diluted earnings per share for the thirteen weeks ended May 1, 2010 because to include them would have been antidilutive. Certain grants that are subject to performance conditions for vesting are considered antidilutive if the performance conditions are not met as of the end of the reporting period.