EARNINGS PER COMMON SHARE

3 Months Ended

May 21, 2011

EARNINGS PER COMMON SHARE

EARNINGS PER COMMON SHARE

5. EARNINGS PER COMMON SHARE

Net earnings attributable to The Kroger Co. per basic common share equal net earnings attributable to The Kroger Co. less income allocated to participating securities divided by the weighted average number of common shares outstanding.  Net earnings attributable to The Kroger Co. per diluted common share equal net earnings attributable to The Kroger Co. less income allocated to participating securities divided by the weighted average number of common shares outstanding, after giving effect to dilutive stock options.  The following table provides a reconciliation of net earnings attributable to The Kroger Co. and shares used in calculating net earnings attributable to The Kroger Co. per basic common share to those used in calculating net earnings attributable to The Kroger Co. per diluted common share:

	First Quarter Ended					First Quarter Ended
	May 21, 2011					May 22, 2010
	Earnings (Numerator)		Shares (Denominator)	Per Share Amount		Earnings (Numerator)		Shares (Denominator)	Per ShareAmount
Net earnings attributable to The Kroger Co. per basic common share	$	429	608	$	0.71	$	371	641	$	0.58
Dilutive effect of stock options			4					4
Net earnings attributable to The Kroger Co. per diluted common share	$	429	612	$	0.70	$	371	645	$	0.58

The Company had undistributed and distributed earnings to participating securities, which for Kroger are unvested restricted shares, totaling $3 in both the first quarters of 2011 and 2010.

The Company had options outstanding for approximately 13 and 19 shares during the first quarter of 2011 and 2010, respectively, that were excluded from the computations of earnings per diluted common share because their inclusion would have had an anti-dilutive effect on earnings per share.