NET EARNINGS PER SHARE

Our basic earnings per share attributable to Weyerhaeuser common shareholders for the last three years were:


•	$0.77 in 2017,


•	$1.40 in 2016 and


•	$0.89 in 2015.

Our diluted earnings per share attributable to Weyerhaeuser common shareholders for the last three years were:


•	$0.77 in 2017,


•	$1.39 in 2016 and


•	$0.89 in 2015.

HOW WE CALCULATE BASIC AND DILUTED NET EARNINGS PER SHARE

"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.

Dilutive potential common shares may include:


•	outstanding stock options,


•	restricted stock units,


•	performance share units and


•	preference shares.

Calculation of Weighted Average Number of Outstanding Common Shares - Dilutive



SHARES IN THOUSANDS
	2017	2016	2015
Weighted average number of outstanding shares - basic	753,085	718,560	516,371
Dilutive potential common shares:
Stock options	2,571	2,672	2,342
Restricted stock units	582	756	381
Performance share units	428	413	524
Total effect of outstanding dilutive potential common shares	3,581	3,841	3,247
Weighted average number of outstanding common shares - dilutive	756,666	722,401	519,618

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.

SHARES EXCLUDED FROM DILUTIVE EFFECT

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.

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



SHARES IN THOUSANDS
	2017	2016	2015
Stock options	1,351	1,462	5,016
Performance share units	799	384	155
Preference shares⁽¹⁾	—	—	25,307
(1) See Note 15: Shareholders' Interest for more information.