Earnings Per Share

6 Months Ended

Aug. 02, 2013

Earnings Per Share

Earnings Per Share

Note 8: Earnings Per Share-The Company calculates basic and diluted earnings per common share using the two-class method. Under the two-class method, net earnings are allocated to each class of common stock and participating security as if all of the net earnings for the period had been distributed. The Company's participating securities consist of share-based payment awards that contain a nonforfeitable right to receive dividends and therefore are considered to participate in undistributed earnings with common shareholders.

Basic earnings per common share excludes dilution and is calculated by dividing netearnings allocable to common shares by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share is calculated by dividing netearningsallocable to common shares by the weighted-average number of common shares as of the balance sheet date, as adjusted for the potential dilutive effect of non-participating share-based awards. The following table reconciles earnings per common share for the three and sixmonths ended August 2, 2013, and August 3, 2012.

	Three Months Ended				Six Months Ended
(In millions, except per share data)	August 2, 2013		August 3, 2012		August 2, 2013		August 3, 2012
Basic earnings per common share:
Net earnings	$	941	$	747	$	1,482	$	1,275
Less: Net earnings allocable to participating securities		(6)		(5)		(10)		(9)
Net earnings allocable to common shares	$	935	$	742	$	1,472	$	1,266
Weighted-average common shares outstanding		1,067		1,157		1,077		1,182
Basic earnings per common share	$	0.88	$	0.64	$	1.37	$	1.07
Diluted earnings per common share:
Net earnings	$	941	$	747	$	1,482	$	1,275
Less: Net earnings allocable to participating securities		(6)		(5)		(10)		(9)
Net earnings allocable to common shares	$	935	$	742	$	1,472	$	1,266
Weighted-average common shares outstanding		1,067		1,157		1,077		1,182
Dilutive effect of non-participating share-based awards		1		2		2		1
Weighted-average common shares, as adjusted		1,068		1,159		1,079		1,183
Diluted earnings per common share	$	0.88	$	0.64	$	1.36	$	1.07

Stock options to purchase 2.1million and 10.7 million shares of common stockfor the three months ended August 2, 2013, and August 3, 2012, respectively, were excluded from the computation of diluted earnings per common share because their effect would have been anti-dilutive.Stock options to purchase 1.8million and 8.6 million shares of common stockfor the six months ended August 2, 2013, and August 3, 2012, respectively, were excluded from the computation of diluted earnings per common share because their effect would have been anti-dilutive.