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Earnings Per Share
 9 Months Ended
Oct. 28, 2016
Earnings Per Share  
Earnings Per Share
Note 12: 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 and nine months ended October 28, 2016 and October 30, 2015:
 
Three Months Ended
 
Nine Months Ended
(In millions, except per share data)
October 28, 2016
 
October 30, 2015
 
October 28, 2016
 
October 30, 2015
Basic earnings per common share:
 
 
 
 
 
 
 
Net earnings attributable to Lowe’s Companies, Inc.
$
378

 
$
736

 
$
2,428

 
$
2,535

Less: Net earnings allocable to participating securities
(2
)
 
(3
)
 
(9
)
 
(12
)
Net earnings allocable to common shares, basic
$
376

 
$
733

 
$
2,419

 
$
2,523

Weighted average common shares outstanding
873

 
918

 
884

 
933

Basic earnings per common share
$
0.43

 
$
0.80

 
$
2.74

 
$
2.70

Diluted earnings per common share:
 
 
 
 
 
 
 
Net earnings attributable to Lowe’s Companies, Inc.
$
378

 
$
736

 
$
2,428

 
$
2,535

Less: Net earnings allocable to participating securities
(2
)
 
(3
)
 
(9
)
 
(12
)
Net earnings allocable to common shares, diluted
$
376

 
$
733

 
$
2,419

 
$
2,523

Weighted average common shares outstanding
873

 
918

 
884

 
933

Dilutive effect of non-participating share-based awards
1

 
3

 
2

 
2

Weighted average common shares, as adjusted
874

 
921

 
886

 
935

Diluted earnings per common share
$
0.43

 
$
0.80

 
$
2.73

 
$
2.70



Stock options to purchase 1.1 million and 0.9 million shares of common stock were anti-dilutive for the three and nine months ended October 28, 2016, respectively. Stock options to purchase 0.4 million and 0.1 million shares of common stock were anti-dilutive for the three and nine months ended October 30, 2015, respectively.