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

	13 Weeks Ended
	May 2,		May 4,
(In thousands)	2020		2019
Weighted average common shares outstanding:
Basic number of common shares outstanding		166,781		172,598
Dilutive effect of stock options and non-vested restricted stock^*		—		1,475
Diluted number of common shares outstanding		166,781		174,073
Anti-Dilutive Shares*		3,040		171

*For the quarter ended May 2, 2020, there were 0.7 million potentially dilutive equity awards that were excluded from 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 for the most recent quarter to calculate the conversion spread. For the period of issuance of the convertible notes through May 2, 2020, the average closing price of our stock was below the conversion price per share of $8.75, and, therefore, the convertible notes did not have a dilutive effect. 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.