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 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 six months ended July 29, 2017, and July 30, 2016 ($ and shares in millions, except per share amounts):



	Three Months Ended				Six Months Ended
	July 29, 2017		July 30, 2016		July 29, 2017		July 30, 2016
Numerator
Net earnings from continuing operations	$	209	$	182	$	397	$	408

Denominator
Weighted-average common shares outstanding	304.1		320.8		306.7		322.2
Dilutive effect of stock compensation plan awards	6.7		2.1		6.3		2.6
Weighted-average common shares outstanding, assuming dilution	310.8		322.9		313.0		324.8

Net earnings per share from continuing operations
Basic	$	0.69	$	0.57	$	1.29	$	1.27
Diluted	$	0.67	$	0.56	$	1.27	$	1.26

The computation of weighted-average common shares outstanding, assuming dilution, excluded options to purchase zero shares and 8.8 million shares of common stock for the three months ended July 29, 2017, and July 30, 2016, respectively, and options to purchase zero shares and 8.8 million shares of common stock for the six months ended July 29, 2017, and July 30, 2016, 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).