9. Earnings per Share

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, dividend equivalents attached to nonvested share awards that are settled in shares of Best Buy common stock 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 for the three months ended May 4, 2019, and May 5, 2018 ($ and shares in millions, except per share amounts):


	Three Months Ended
	May 4, 2019		May 5, 2018
Numerator
Net earnings	$	265	$	208

Denominator
Weighted-average common shares outstanding		267.6		282.6
Dilutive effect of stock compensation plan awards		3.9		5.7
Weighted average common shares outstanding, assuming dilution		271.5		288.3

Potential shares which were anti-dilutive and excluded from weighted average shares computation		0.8		0.1

Basic earnings per share	$	0.99	$	0.74
Diluted earnings per share	$	0.98	$	0.72