Earnings per Share:

All per share information presented has been retrospectively adjusted to reflect the effects of the one-for-six reverse stock split which became effective on April 26, 2015 (see Note 13).

We compute basic earnings per share by dividing net income applicable to common shares by the weighted average number of common shares outstanding during each period. Our non-vested restricted shares containing a non-forfeitable right to receive dividends on a one-to-one per share ratio to common shares are considered participating securities, and the impact is included in the computation of earnings per share pursuant to the two-class method. Calculations of earnings per share 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.

Diluted earnings per share are computed by dividing net income applicable to common shares by the weighted average number of common shares adjusted to include the effect of potentially dilutive securities. Potentially dilutive securities include incremental shares issuable upon exercise of outstanding stock options and warrants. Diluted earnings per share exclude all potentially dilutive securities if their effect is anti-dilutive.

11. Earnings per Share, Continued:

We also issue performance-based restricted stock units as part of our share-based compensation plan. These restricted stock units contain a forfeitable right to receive dividends. Because dividends attributable to these shares are forfeited if the vesting provisions are not met, they are considered non-participating restricted shares and are not dilutive under the two-class method until the performance conditions have been satisfied. As of March 31, 2015, the performance conditions for the outstanding restricted stock units have not yet been satisfied. Options and warrants granted in conjunction with the acquisition of PAETEC are included in the computation of dilutive earnings per share using the treasury stock method.

A reconciliation of net income and number of shares used in computing basic and diluted earnings per share was as follows for the three month periods ended March 31:



	Three Months Ended
(Millions, except per share amounts)	2015			2014
Basic and diluted earnings per share:
Numerator:
Income from continuing operations	$	5.3		$	16.0
Income from continuing operations allocable to participating securities	(0.7		)	(1.3		)
Net income attributable to common shares	$	4.6		$	14.7

Denominator:
Basic shares outstanding
Weighted average basic shares outstanding	100.8			99.6
Weighted average participating securities	(0.9		)	(0.6		)
Weighted average shares outstanding for basic earnings per share	99.9			99.0
Diluted shares outstanding
Weighted average shares outstanding for basic earnings per share	99.9			99.0
Effect of dilutive stock options	0.1			0.1
Weighted average shares outstanding for diluted earnings per share	100.0			99.1
Basic and diluted earnings per share:
Net income		$.05			$.15

Options to purchase shares of stock issuable under stock-based compensation plans that were excluded from the computation of diluted earnings per share because the exercise prices were greater than the average market price of our common stock and, therefore, the effect would be anti-dilutive, totaled 0.1 million shares for both the three month periods ended March 31, 2015 and 2014.