Earnings Per Share

3 Months Ended

Apr. 29, 2016

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 net earnings 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 net earnings allocable 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 months ended April 29, 2016, and May 1, 2015.

	Three Months Ended
(In millions, except per share data)	April 29, 2016			May 1, 2015
Basic earnings per common share:
Net earnings	$	884		$	673
Less: Net earnings allocable to participating securities	(4		)	(3		)
Net earnings allocable to common shares, basic	$	880		$	670
Weighted-average common shares outstanding	897			950
Basic earnings per common share	$	0.98		$	0.70
Diluted earnings per common share:
Net earnings	$	884		$	673
Less: Net earnings allocable to participating securities	(4		)	(3		)
Net earnings allocable to common shares, diluted	$	880		$	670
Weighted-average common shares outstanding	897			950
Dilutive effect of non-participating share-based awards	2			2
Weighted-average common shares, as adjusted	899			952
Diluted earnings per common share	$	0.98		$	0.70

Stock options to purchase 0.8 million shares of common stock were anti-dilutive for the three months ended April 29, 2016. No stock options were anti-dilutive for the three months ended May 1, 2015.