EARNINGS PER COMMON SHARE

6 Months Ended

Aug. 13, 2016

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:

	Second Quarter Ended August 13, 2016					Second Quarter Ended August 15, 2015
	Earnings (Numerator)		Shares (Denominator)	Per Share Amount		Earnings (Numerator)		Shares (Denominator)	Per Share Amount
Net earnings attributable to The Kroger Co. per basic common share	$	380	943	$	0.40	$	429	963	$	0.44
Dilutive effect of stock options			16					14
Net earnings attributable to The Kroger Co. per diluted common share	$	380	959	$	0.40	$	429	977	$	0.44

	Two Quarters Ended August 13, 2016					Two Quarters Ended August 15, 2015
	Earnings (Numerator)		Shares (Denominator)	Per Share Amount		Earnings (Numerator)		Shares (Denominator)	Per Share Amount
Net earnings attributable to The Kroger Co. per basic common share	$	1,070	949	$	1.13	$	1,042	966	$	1.08
Dilutive effect of stock options			17					15
Net earnings attributable to The Kroger Co. per diluted common share	$	1,070	966	$	1.11	$	1,042	981	$	1.06

The Company had combined undistributed and distributed earnings to participating securities totaling $3 in the second quarter of 2016 and $4 in the second quarter of 2015.  For the first two quarters of 2016 and 2015, the Company had combined undistributed and distributed earnings to participating securities of $9 and $10, respectively.

The Company had options outstanding for approximately 8 million and 2 million shares during the second quarters of 2016 and 2015, respectively, that were excluded from the computations of net earnings per diluted common share because their inclusion would have had an anti-dilutive effect on net earnings per share.  The Company had options outstanding for approximately 6 million shares in the first two quarters of 2016 and 1 million shares in the first two quarters of 2015 that were excluded from the computations of net earnings per diluted common share because their inclusion would have had an anti-dilutive effect on earnings per share.