NET EARNINGS PER SHARE

Our basic and diluted earnings per share attributable to Weyerhaeuser shareholders were:


•	$0.03 during second quarter 2017 and $0.24 during year-to-date 2017; and


•	$0.21 during second quarter 2016 and $0.33 during year-to-date 2016.

Basic earnings per share is net earnings available to common shareholders divided by the weighted average number of our outstanding common shares, including stock equivalent units where there is no circumstance under which those shares would not be issued.

Diluted earnings per share is net earnings available to common shareholders divided by the sum of the weighted average number of our outstanding common shares and the effect of our outstanding dilutive potential common shares:



	QUARTER ENDED		YEAR-TO-DATE ENDED
SHARES IN THOUSANDS	JUNE 2017	JUNE 2016	JUNE 2017	JUNE 2016
Weighted average number of outstanding common shares – basic	752,630	743,140	751,674	687,572
Dilutive potential common shares:
Stock options	2,845	3,061	2,913	2,398
Restricted stock units	488	1,075	518	678
Performance share units	488	425	520	412
Total effect of outstanding dilutive potential common shares	3,821	4,561	3,951	3,488
Weighted average number of outstanding common shares – dilutive	756,451	747,701	755,625	691,060

We use the treasury stock method to calculate the dilutive effect of our outstanding stock options, restricted stock units and performance share units. Share-based payment awards that are contingently issuable upon the achievement of specified performance or market conditions are included in our diluted earnings per share calculation in the period in which the conditions are satisfied.

Potential Shares Not Included in the Computation of Diluted Earnings per Share

The following shares were not included in the computation of diluted earnings per share because they were either antidilutive or the required performance or market conditions were not met. Some or all of these shares may be dilutive potential common shares in future periods.



	QUARTER ENDED		YEAR-TO-DATE ENDED
SHARES IN THOUSANDS	JUNE 2017	JUNE 2016	JUNE 2017	JUNE 2016
Stock options	1,408	1,916	1,408	1,916
Performance share units	450	471	450	471
Preference shares	—	25,273	—	25,273

We issued 13.8 million 6.375 percent Mandatory Convertible Preference Shares, Series A on June 24, 2013, the majority of which remained outstanding through June 30, 2016. Preference Shares outstanding during the quarter ended June 30, 2016, were considered antidilutive and were not considered participating. On July 1, 2016, all outstanding 6.375 percent Mandatory Convertible Preference Shares, Series A (Preference Shares) converted into Weyerhaeuser common shares at a rate of 1.6929 Weyerhaeuser common shares per Preference Share. There were no preference shares outstanding as of June 30, 2017.