EARNINGS PER SHARE

9 Months Ended

Feb. 23, 2020

9. EARNINGS PER SHARE

Basic earnings per share is calculated on the basis of weighted average outstanding shares of common stock. Diluted earnings per share is computed on the basis of basic weighted average outstanding shares of common stock adjusted for the dilutive effect of stock options, restricted stock unit awards, and other dilutive securities. During the second quarter of fiscal 2019, we issued 77.5 million shares of our common stock out of treasury to the former shareholders of Pinnacle pursuant to the terms of the Merger Agreement. In addition, we issued 16.3 million shares of our common stock, par value $5.00 per share, in an underwritten public offering in connection with the financing of the Pinnacle acquisition, with net proceeds of $555.7 million (see Note 2).

The following table reconciles the income and average share amounts used to compute both basic and diluted earnings per share:

	Thirteen weeks ended				Thirty-nine weeks ended
	February 23, 2020		February 24, 2019		February 23, 2020		February 24, 2019
Net income attributable to Conagra Brands, Inc. common stockholders:
Income from continuing operations attributable to Conagra Brands, Inc. common stockholders	$	204.4	$	242.0	$	638.7	$	553.7
Loss from discontinued operations, net of tax, attributable to Conagra Brands, Inc. common stockholders		—		—		—		(1.9	)
Net income attributable to Conagra Brands, Inc. common stockholders	$	204.4	$	242.0	$	638.7	$	551.8
Weighted average shares outstanding:
Basic weighted average shares outstanding		487.4		486.2		487.1		431.3
Add: Dilutive effect of stock options, restricted stock unit awards, and other dilutive securities		1.4		1.2		1.3		1.8
Diluted weighted average shares outstanding		488.8		487.4		488.4		433.1

For the third quarter and first three quarters of fiscal 2020, there were 1.7 million and 1.9 million stock options outstanding, respectively, that were excluded from the computation of diluted weighted average shares because the effect was antidilutive. For the third quarter and first three quarters of fiscal 2019, there were 3.5 million and 1.8 million stock options outstanding, respectively, that were excluded from the calculation.