EARNINGS PER COMMON SHARE

4 Months Ended

May 24, 2014

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 24, 2014					May 25, 2013
	Earnings(Numerator)		Shares(Denominator)	Per ShareAmount		Earnings(Numerator)		Shares(Denominator)	Per ShareAmount
Net earnings attributable to The Kroger Co. per basic common share	$	497	501	$	0.99	$	477	514	$	0.93
Dilutive effect of stock options			6					6
Net earnings attributable to The Kroger Co. per diluted common share	$	497	507	$	0.98	$	477	520	$	0.92

The Company had undistributed and distributed earnings to participating securities totaling $4 for each of the first quarters of 2014 and 2013.

The Company had options outstanding for approximately 2 million shares during the first quarter of 2014 that were excluded from the computation of earnings per diluted common share because their inclusion would have had an anti-dilutive effect on earnings per share. In the first quarter of 2013, the Company did not have any anti-dilutive options outstanding that were excluded from the computations of earnings per diluted common share.