The 2013 annual report ofBest Buy Co., Inc., reported profitable operations for the year. However, the company suffered a net loss in 2012. Best Buy reported the following for the twelve months ended March 3, 2012:

Note: The calculation of diluted earnings per share assumes the conversion of the company's previously outstanding convertible debentures due in 2022 into 8.8 million shares common stock and adds back the related after-tax interest expense of $1.5. The calculation of diluted (loss) per share for the twelve months ended March 3, 2012, does not include potential dilutive shares of common stock because their inclusion would be antidilutive (i.e., reduce the net loss per share).

Required:

1. 1.The note indicates that Best Buy does not include potentially dilutive shares when calculating EPS for the twelve months ended March 3, 2012. What are potentially dilutive shares?
2. 2. The note indicates that diluted earnings per share assumes the conversion of the company'spreviously outstandingconvertible debentures due in 2022 into 8.8 million shares common stock and adds back the related after-tax interest expense of $1.5. Apparently, these bonds were actually converted during the year. Would diluted EPS have been different if the bonds had not been converted and were still outstanding? Explain.
3. 3. Best Buy does not include potentially dilutive shares when calculating EPS for the twelve months ended March 3, 2012. Why not? Assume Best Buy had 40 million common equivalent shares and included them in the calculation, what would have been the amount of diluted loss per share for the twelve months ended March 3, 2012?