14. 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 Company’s unvested RSUs, of which some include the right to receive non-forfeitable dividend equivalents, are considered participating securities. The diluted EPS reflects the potential dilution that could occur if common stock were issued for awards under the Company’s Stock Incentive Plan and is calculated using the more dilutive method of either the two-class method or the treasury stock method. The treasury stock method assumes that the Company uses the proceeds from the exercise of stock option awards to repurchase ordinary shares at the average market price during the period. For unvested restricted stock, assumed proceeds under the treasury stock method will include unamortized compensation cost and windfall tax benefits or shortfalls. Post spin-off assumed proceeds under the treasury stock method related to RSUs will only include unamortized compensation cost related to Autoliv employees holding Autoliv RSUs. 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.

For the three and nine month periods ended September 30, 2018, no shares were excluded from the computation of the diluted EPS. For the three and nine month periods 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, which could potentially dilute basic EPS in the future.

During the three and nine month periods ended September 30, 2018, approximately 9 thousand and 0.2 million shares of common stock, respectively, from the treasury stock have been utilized by the Company’s Stock Incentive Plan. During the three and nine month periods ended September 30, 2017, approximately 30 thousand and 0.1 million shares of common stock, respectively, from the treasury stock were 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, 2018		September 30, 2017			September 30, 2018			September 30, 2017
Numerator:
Basic and diluted:
Net income from continuing operations		117.5		105.7			468.9			389.3
Net income from discontinued operations		—		(14.9	)		(187.5	)		(24.8	)
Net income attributable to controlling interest	$	117.5	$	90.8		$	281.4		$	364.5
Participating share awards with dividend equivalent rights		—		—			—			—
Net income available to common shareholders		117.5		90.8			281.4			364.5
Earnings allocated to participating share awards		—		—			—			—
Net income attributable to common shareholders	$	117.5	$	90.8		$	281.4		$	364.5
Denominator:
Basic: Weighted average common stock		87.1		86.9			87.1			87.7
Add: Weighted average stock options/share awards		0.3		0.3			0.2			0.2
Diluted:		87.4		87.2			87.3			87.9

Basic EPS:
Continuing operations	$	1.35	$	1.22		$	5.38		$	4.44
Discontinued operations	$	—	$	(0.17	)	$	(2.15	)	$	(0.28	)
Basic EPS	$	1.35	$	1.05		$	3.23		$	4.16

Diluted EPS:
Continuing operations	$	1.34	$	1.21		$	5.37		$	4.43
Discontinued operations	$	—	$	(0.17	)	$	(2.15	)	$	(0.28	)
Diluted EPS	$	1.34	$	1.04		$	3.22		$	4.15