Earnings Per Share

12 Months Ended

Dec. 31, 2019

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 unvested PSUs are contingently issuable shares which are included in our diluted earnings per share calculations which do not include voting or dividend rights. The PSUs that vested as of December 31, 2019 are included in basic and diluted EPS as issued shares.

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,
	2019		2018		2017
Weighted-average shares:
Common shares outstanding	74,477,865		77,447,263		78,219,458
Restricted common shares	495,192		476,726		556,592

Total weighted-average shares	74,973,057		77,923,989		78,776,050

Percentage of weighted-average shares:
Common shares outstanding	99.34	%	99.39	%	99.29	%
Restricted common shares	0.66	%	0.61	%	0.71	%

Total	100.00	%	100.00	%	100.00	%

The calculations of both basic and diluted earnings per share for the years ended December 31, 2019, 2018 and 2017 are as follows:



	Year Ended December 31,
	2019			2018			2017
Earnings per common share — Basic:
Income from continuing operations	$	156,575		$	247,919		$	147,874
Less: Distributed and undistributed earnings allocated to restricted common shares⁽¹⁾	(1,034		)	(1,517		)	(1,045		)
Income from continuing operations available to common shareholders — Basic	$	155,541		$	246,402		$	146,829

Weighted-average common shares outstanding — Basic	74,477,865			77,447,263			78,219,458

Net income per common share — Basic	$	2.09		$	3.18		$	1.88

Earnings per common share — Diluted:
Income from continuing operations	$	156,575		$	247,919		$	147,874
Less: Distributed and undistributed earnings allocated to restricted common shares⁽¹⁾	(1,034		)	(1,517		)	(1,045		)
Income from continuing operations available to common shareholders — Diluted	$	155,541		$	246,402		$	146,829

Weighted-average common shares outstanding — Basic	74,477,865			77,447,263			78,219,458
Effect of diluted shares⁽²⁾	904,417			301,356			153,983
Weighted-average common shares outstanding — Diluted	75,382,282			77,748,619			78,373,441

Net income per common share — Diluted	$	2.06		$	3.17		$	1.87

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(1)	For the years ended December 31, 2019, 2018 and 2017, distributed and undistributed earnings to restricted shares was 0.66%, 0.61% and 0.71%, 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, 2019, 2018 and 2017, dilutive shares represented contingently issuable shares related to the Company’s PSUs.