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Earnings Per Share
 9 Months Ended
Nov. 01, 2019
Earnings Per Share  
Earnings Per Share 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 November 1, 2019 and November 2, 2018:
 
Three Months Ended
 
Nine Months Ended
(In millions, except per share data)
November 1, 2019
 
November 2, 2018
 
November 1, 2019
 
November 2, 2018
Basic earnings per common share:
 
 
 
 
 
 
 
Net earnings
$
1,049

 
$
629

 
$
3,771

 
$
3,138

Less: Net earnings allocable to participating securities
(3
)
 
(1
)
 
(11
)
 
(10
)
Net earnings allocable to common shares, basic
$
1,046

 
$
628

 
$
3,760

 
$
3,128

Weighted-average common shares outstanding
769

 
806

 
782

 
815

Basic earnings per common share
$
1.36

 
$
0.78

 
$
4.81

 
$
3.84

Diluted earnings per common share:
 
 
 
 
 

 
 

Net earnings
$
1,049

 
$
629

 
$
3,771

 
$
3,138

Less: Net earnings allocable to participating securities
(3
)
 
(1
)
 
(11
)
 
(10
)
Net earnings allocable to common shares, diluted
$
1,046

 
$
628

 
$
3,760

 
$
3,128

Weighted-average common shares outstanding
769

 
806

 
782

 
815

Dilutive effect of non-participating share-based awards
1

 
1

 
1

 
1

Weighted-average common shares, as adjusted
770

 
807

 
783

 
816

Diluted earnings per common share
$
1.36

 
$
0.78

 
$
4.80

 
$
3.83



Stock options to purchase 0.9 million and 0.9 million shares of common stock were anti-dilutive for the three and nine months ended November 1, 2019, respectively. Stock options to purchase 0.2 million and 0.4 million shares of common stock were anti-dilutive for the three and nine months ended November 2, 2018, respectively.