Earnings Per Share

We include all common shares granted under our incentive compensation plan which remain unvested (“restricted common shares”) and contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid (“participating securities”), in the number of shares outstanding in our basic and diluted EPS calculations using the two-class method. All of our restricted common shares are currently participating securities. Our PSUs are contingently issuable shares which are included in our diluted earnings per share calculations which do not include voting or dividend rights.

Under the two-class method, earnings per common share are computed by dividing the sum of distributed earnings allocated to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding for the period. In applying the two-class method, distributed and undistributed earnings are allocated to both common shares and restricted common shares based on the total weighted average shares outstanding during the period as follows:



	Year Ended December 31,
	2017		2016		2015
Weighted-average shares:
Common shares outstanding	78,219,458		78,161,494		80,489,391
Restricted common shares	556,592		653,944		615,611
Total weighted-average shares	78,776,050		78,815,438		81,105,002

Percentage of weighted-average shares:
Common shares outstanding	99.29	%	99.17	%	99.24	%
Restricted common shares	0.71	%	0.83	%	0.76	%
Total	100.00	%	100.00	%	100.00	%

The calculations of both basic and diluted earnings per share for the years ended December 31, 2017, 2016 and 2015 are as follows:



	Year Ended December 31,
	2017			2016			2015
Earnings per common share — Basic:
Income from continuing operations	$	147,874		$	151,453		$	121,729
Less: Distributed and undistributed earnings allocated to restricted common shares⁽¹⁾	(1,045		)	(1,257		)	(924		)
Income from continuing operations available to common shareholders — Basic	$	146,829		$	150,196		$	120,805

Weighted-average common shares outstanding — Basic	78,219,458			78,161,494			80,489,391

Net income per common share — Basic	$	1.88		$	1.92		$	1.50

Earnings per common share — Diluted:
Income from continuing operations	$	147,874		$	151,453		$	121,729
Less: Distributed and undistributed earnings allocated to restricted common shares⁽¹⁾	(1,045		)	(1,257		)	(924		)
Income from continuing operations available to common shareholders — Diluted	$	146,829		$	150,196		$	120,805

Weighted-average common shares outstanding — Basic	78,219,458			78,161,494			80,489,391
Effect of diluted shares⁽²⁾	153,983			42,785			—
Weighted-average common shares outstanding — Diluted	78,373,441			78,204,279			80,489,391

Net income per common share — Diluted	$	1.87		$	1.92		$	1.50

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(1)	For the years ended December 31, 2017, 2016 and 2015, distributed and undistributed earnings to restricted shares was 0.71%, 0.83% and 0.76%, respectively, of net income. The amount of restricted share forfeitures for all periods present was immaterial to the allocation of distributed and undistributed earnings.


(2)	For the years ended December 31, 2017 and 2016, dilutive shares represented contingently issuable shares related to the Company's PSUs. For the year ended December 31, 2015, we had no dilutive shares.