Basic and Diluted Earnings Per Share

9 Months Ended

Oct. 30, 2022

BASIC AND DILUTED EARNINGS PER SHARE

The following table presents the calculation of basic and diluted earnings per share for the three and nine months ended October 30, 2022, the three months ended October 31, 2021 and from July 23, 2021 to October 31, 2021, the period following the Reorganization Transactions.

Basic earnings per share is computed by dividing net income attributable to Core & Main for the period by the weighted average number of shares of Class A common stock outstanding during the same period. Shares of Class A common stock issued during the period were weighted for the portion of the period in which the shares of Class A common stock were outstanding. The Company did not apply the two-class method because shares of Class B common stock do not participate in earnings or losses of Core & Main. As a result, the shares of Class B common stock are not considered participating securities and are not included in the weighted average shares outstanding for purposes of earnings per share. Net income allocated to holders of non-controlling interests was excluded from net income available to the Class A common stock. There were no preferred dividends and no shares of preferred stock outstanding for the period.

The diluted earnings per share calculation includes the basic weighted average number of shares of Class A common stock outstanding plus the dilutive impact of potential outstanding shares of Class A common stock that would be issued upon exchange of Partnership Interests, together with the retirement of a corresponding number of shares of Class B common stock, under the if-converted method, if dilutive. The treasury stock method is applied to outstanding awards, including unvested Partnership Interests and outstanding stock appreciation rights, restricted stock units and stock options.


	Three Months Ended				Nine Months Ended October 30, 2022		July 23, 2021 through October 31, 2021
Basic earnings per share:	October 30, 2022		October 31, 2021
Net income	$	178	$	109	$	497	$	72
Net income attributable to non-controlling interests	67		45		185		29
Net income available to Class A common stock	111		64		312		43
Weighted average shares outstanding	170,027,629		158,986,524		168,485,011		156,869,487
Net income per share	$	0.65	$	0.41	$	1.85	$	0.27
Diluted earnings per share:
Net income available to common shareholders - basic	$	111	$	64	$	312	$	43
Increase to net income attributable to dilutive instruments	49		32		137		21
Net income available to common shareholders - diluted	160		96		449		64
Weighted average shares outstanding - basic	170,027,629		158,986,524		168,485,011		156,869,487
Incremental shares of common stock attributable to dilutive instruments	76,234,595		85,595,592		77,713,811		86,211,113
Weighted average shares outstanding - diluted	246,262,224		244,582,116		246,198,822		243,080,600
Net income per share - diluted	$	0.65	$	0.39	$	1.82	$	0.26