Earnings per share

9 Months Ended

Sep. 30, 2017

15 Earnings per share

The Company calculates basic earnings per share (EPS) by dividing net income attributable to controlling interest by the weighted-average number of shares of common stock outstanding for the period (net of treasury shares). The diluted EPS reflects the potential dilution that could occur if common stock were issued for awards under the Company’s Stock Incentive Plan.

For the three and nine months ended September 30, 2017, approximately 0.1 million shares and 0.1 million shares of common stock, respectively, were not included in the computation of the diluted EPS, however these could potentially impact EPS in the future. For the three and nine months ended September 30, 2016, approximately 0.2 million shares of common stock, respectively, were not included in the computation of the diluted EPS, which could potentially dilute basic EPS in the future.

During the three months ended September 30, 2017 and September 30, 2016, approximately 30 thousand and 7 thousand shares of common stock, respectively, from the treasury stock have been utilized by the Company’s Stock Incentive Plan. During the nine months ended September 30, 2017 and September 30, 2016, approximately 0.1 million and 0.1 million shares of common stock, respectively, from the treasury stock have been utilized by the Company’s Stock Incentive Plan.

The computation of basic and diluted EPS under the two-class method were as follows:

(In millions, except per share amounts)	Three months ended				Nine months ended
	September 30, 2017		September 30, 2016		September 30, 2017		September 30, 2016
Numerator:
Basic and diluted:
Net income attributable to controlling interest	$	90.8	$	137.8	$	364.5	$	419.4
Participating share awards with dividend equivalent rights		0.0		—		0.0		—
Net income available to common shareholders		90.8		137.8		364.5		419.4
Earnings allocated to participating share awards¹⁾		0.0		—		0.0		—
Net income attributable to common shareholders	$	90.8	$	137.8	$	364.5	$	419.4

Denominator: ¹⁾
Basic: Weighted average common stock		86.9		88.2		87.7		88.2
Add: Weighted average stock options/share awards		0.3		0.3		0.2		0.2
Diluted:		87.2		88.5		87.9		88.4

Basic EPS	1.04		$	1.56	4.16		$	4.76
Diluted EPS	1.04		$	1.56	4.15		$	4.74

¹⁾

The Company’s unvested RSUs and PSs, of which some include the right to receive non-forfeitable dividend equivalents, are considered participating securities. Calculations of EPS under the two-class method exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities. The related participating securities are similarly excluded from the denominator.