The following is a reconciliation between basic and diluted weighted average shares outstanding:

	13 Weeks Ended				26 Weeks Ended
	August 1,		August 3,		August 1,		August 3,
(In thousands)	2020		2019		2020		2019
Weighted average common shares outstanding:
Basic number of common shares outstanding		166,315		170,756		166,461		172,291
Dilutive effect of stock options and non-vested restricted stock^*		—		1,025		—		1,410
Diluted number of common shares outstanding		166,315		171,781		166,461		173,701
Anti-Dilutive Shares*		8,235		768		4,670		434

*For each of the 13 and 26 weeks ended August 1, 2020, there were 1.2 million potentially dilutive equity awards that were excluded from the diluted earnings per share calculation because the Company incurred a net loss for this period and their inclusion would be anti-dilutive.

For each of the 13 and 26 weeks ended August 1, 2020, there were 7.0 million and 3.5 million potentially dilutive shares from the Company’s convertible notes, respectively, that were excluded from the diluted earnings per share calculation because the Company incurred a net loss for this period and their inclusion would be anti-dilutive.

The Company has the right to settle its convertible notes in any combination of cash and shares of common stock. However, the Company intends to settle the original principal portion of the notes in cash and any conversion value above the principal in stock. Because of this repayment policy, only the conversion spread portion of the amount owed is reflected as dilutive in our weighted average diluted shares outstanding. The Company uses the average of the closing prices of its common stock (NYSE: AEO) as reported on the New York Stock Exchange to calculate the conversion spread. For the 13 weeks ended August 1, 2020, the average closing price of our stock was above the conversion price per share of $8.75, but due to the Company’s net loss, the convertible notes did not have a dilutive effect. Additionally, for the 26 weeks ended August 1, 2020, the convertible notes did not have a dilutive effect due to the company’s net loss for this period. These convertible notes could have a potential dilutive effect in future periods.

Dilutive and anti-dilutive shares relate to share based compensation. Refer to Note 8 and 9 to the Consolidated Financial Statements for additional information regarding our convertible notes and share-based compensation, respectively.