EARNINGS PER COMMON SHARE

4 Months Ended

May 20, 2017

EARNINGS PER COMMON SHARE

EARNINGS PER COMMON SHARE

4.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 20, 2017					May 21, 2016
				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	$	301	914	$	0.33	$	690	954	$	0.72
Dilutive effect of stock options			11					12
Net earnings attributable to The Kroger Co. per diluted common share	$	301	925	$	0.32	$	690	966	$	0.71

The Company had combined undistributed and distributed earnings to participating securities totaling $2 in the first quarter of 2017 and $6 in the first quarter of 2016.

The Company had options outstanding for approximately 9 million and 3 million shares during the first quarters of 2017 and 2016, 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.