Earnings Per Share

12 Months Ended

Jan. 28, 2022

Earnings Per Share [Abstract]

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 2021, 2020, and 2019:

	Years Ended
(In millions, except per share data)	January 28, 2022		January 29, 2021		January 31, 2020
Basic earnings per common share:
Net earnings attributable to Lowe's Companies, Inc.	$	8,442	$	5,835	$	4,281
Less: Net earnings allocable to participating securities	(33)		(24)		(13)
Net earnings allocable to common shares, basic	$	8,409	$	5,811	$	4,268
Weighted-average common shares outstanding	696		748		777
Basic earnings per common share	$	12.07	$	7.77	$	5.49
Diluted earnings per common share:
Net earnings attributable to Lowe's Companies, Inc.	$	8,442	$	5,835	$	4,281
Less: Net earnings allocable to participating securities	(33)		(24)		(13)
Net earnings allocable to common shares, diluted	$	8,409	$	5,811	$	4,268
Weighted-average common shares outstanding	696		748		777
Dilutive effect of non-participating share-based awards	3		2		1
Weighted-average common shares, as adjusted	699		750		778
Diluted earnings per common share	$	12.04	$	7.75	$	5.49
Anti-dilutive securities excluded from diluted weighted-average common shares	0.3		0.3		0.9