EARNINGS PER COMMON SHARE

9 Months Ended

Nov. 05, 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:

	Third Quarter Ended					Third Quarter Ended
	November 5, 2016					November 7, 2015
				Per					Per
	Earnings		Shares	Share		Earnings		Shares	Share
	(Numerator)		(Denominator)	Amount		(Numerator)		(Denominator)	Amount
Net earnings attributable to The Kroger Co. per basic common share	$	388	940	$	0.41	$	424	965	$	0.44
Dilutive effect of stock options			13					14
Net earnings attributable to The Kroger Co. per diluted common share	$	388	953	$	0.41	$	424	979	$	0.43

	Three Quarters Ended					Three Quarters Ended
	November 5, 2016					November 7, 2015
				Per					Per
	Earnings		Shares	Share		Earnings		Shares	Share
	(Numerator)		(Denominator)	Amount		(Numerator)		(Denominator)	Amount
Net earnings attributable to The Kroger Co. per basic common share	$	1,458	946	$	1.54	$	1,466	966	$	1.52
Dilutive effect of stock options			16					14
Net earnings attributable to The Kroger Co. per diluted common share	$	1,458	962	$	1.52	$	1,466	980	$	1.50

The Company had combined undistributed and distributed earnings to participating securities totaling $3 in the third quarter of 2016 and $4 in the third quarter of 2015. For the first three quarters of 2016 and 2015, the Company had combined undistributed and distributed earnings to participating securities of $11 and $14, respectively.

The Company had options outstanding for approximately 11 million and 3 million shares during the third 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 7 million shares in the first three quarters of 2016 and 1 million shares in the first three 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.