NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (continued) (Dollars in millions except per share data) (7) EARNINGS PER SHARE ENERGIZER 2000 ANNUAL REPOR 34 earnings per share calculation, adjusted for the dilutive effect of stock options and restricted stock equivalents. For the years ended September 30, 1999 and 1998, the number of shares used to  compute earnings per share is based on the weighted-average  number of shares of Ralston stock outstanding during the period, adjusted for the distribution of one share of Energizer stock for  each three shares of Ralston stock. The following table sets forth the computation of basic and diluted earnings per share. Earnings per share has been calculated using Energizer’s historical basis earnings for the three years presented below. For the year ended September 30, 2000, the number of shares used to compute basic earnings per share is based on the weighted-average number of shares of Ralston stock outstanding during the six months ended March 31, 2000 (adjusted for the distribution of one share of Energizer stock for each three shares of Ralston stock) and the weighted-average number of shares of Energizer stock outstanding from April 1, 2000 to September 30, 2000. Diluted earnings per  share is based on the average number of shares used for the basic FOR THE YEAR ENDED SEPTEMBER 30, 2000 1999 1998 Numerator Numerator for basic and dilutive earnings per share – Earnings from continuing operations $ 180.2  $ 159.8 $ 208.2 Net loss from discontinued operations $ –  $ (5.6) $ (43.5) Gain/(loss) on disposition of discontinued operations $ 1.2  $ (74.2) $ –  Net Earnings $ 181.4  $ 80.0 $ 164.7 Denominator Denominator for basic earnings per share – Weighted-average shares 96.1  102.6 101.6 Effect of dilutive securities Stock options 0.1  – – Restricted stock equivalents 0.1  – – 0.2  – – Denominator for dilutive earnings per share – Weighted-average shares and assumed conversions 96.3  102.6 101.6 Basic earnings per share Earnings from continuing operations $ 1.88  $ 1.56 $ 2.05 Net earnings/(loss) from discontinued operations – (0.06) (0.43) Net gain/(loss) on disposition of discontinued operations 0.01  (0.72) – Net Earnings $ 1.89  $ 0.78 $ 1.62 Diluted earnings per share Earnings from continuing operations $ 1.87  $ 1.56 $ 2.05 Net earnings/(loss) from discontinued operations – (0.06) (0.43) Net gain/(loss) on disposition of discontinued operations 0.01  (0.72) – Net Earnings $ 1.88  $ 0.78 $ 1.62