Earnings per Share (Notes)

9 Months Ended

Oct. 29, 2016

We compute our basic earnings per share based on the weighted-average number of common shares outstanding and our diluted earnings per share based on the weighted-average number of common shares outstanding adjusted by the number of additional shares that would have been outstanding had potentially dilutive common shares been issued. Potentially dilutive securities include stock options, nonvested share awards and shares issuable under our employee stock purchase plan. Nonvested market-based share awards and nonvested performance-based share awards are included in the average diluted shares outstanding for each period if established market or performance criteria have been met at the end of the respective periods.

The following table presents a reconciliation of the numerators and denominators of basic and diluted earnings per share from continuing operations for the three and nine months ended October 29, 2016, and October 31, 2015 ($ and shares in millions, except per share amounts):



	Three Months Ended				Nine Months Ended
	October 29, 2016		October 31, 2015		October 29, 2016		October 31, 2015
Numerator
Net earnings from continuing operations	$	192	$	129	$	600	$	330

Denominator
Weighted-average common shares outstanding	316.2		344.7		320.2		348.9
Dilutive effect of stock compensation plan awards	3.8		4.3		3.4		4.7
Weighted-average common shares outstanding, assuming dilution	320.0		349.0		323.6		353.6

Net earnings per share from continuing operations
Basic	$	0.61	$	0.37	$	1.87	$	0.95
Diluted	$	0.60	$	0.37	$	1.85	$	0.93

The computation of weighted-average common shares outstanding, assuming dilution, excluded options to purchase 6.3 million and 10.1 million shares of or common stock for the three months ended October 29, 2016, and October 31, 2015, respectively, and options to purchase 6.9 million and 10.0 million shares of our common stock for the nine months ended October 29, 2016, and October 31, 2015, respectively. These amounts were excluded as the options’ exercise prices were greater than the average market price of our common stock for the periods presented, and, therefore, the effect would be anti-dilutive (i.e., including such options would result in higher earnings per share).