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 for the three and six months ended August 4, 2018, and July 29, 2017 ($ and shares in millions, except per share amounts):



	Three Months Ended				Six Months Ended
	August 4, 2018		July 29, 2017		August 4, 2018		July 29, 2017
Numerator
Net earnings	$	244	$	209	$	452	$	397

Denominator
Weighted-average common shares outstanding	279.0		304.1		280.8		306.7
Dilutive effect of stock compensation plan awards	4.7		6.7		5.2		6.3
Weighted-average common shares outstanding, assuming dilution	283.7		310.8		286.0		313.0

Anti-dilutive securities excluded from Weighted-average common shares outstanding, assuming dilution	0.1		0.0		0.1		0.0

Basic earnings per share	$	0.88	$	0.69	$	1.61	$	1.29
Diluted earnings per share	$	0.86	$	0.67	$	1.58	$	1.27

Beginning with our annual broad grant of restricted stock and restricted stock units in March 2018, we attach dividend equivalents to our restricted stock and restricted stock units equal to dividends payable on the same number of shares of Best Buy common stock during the applicable period. Dividend equivalents, settled in additional shares of Best Buy common stock, accrue on restricted stock and restricted stock unit awards during the vesting period. No dividend equivalents are paid on any restricted stock or restricted stock units that are forfeited prior to the vesting date.