Earnings per share

12 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

Earnings per share

Earnings per share

Basic earnings per share is based on the average number of common shares outstanding during the period. Diluted earnings per share is based on the average number of shares used for the basic earnings per share calculation, adjusted for the dilutive effect of restricted stock equivalents, performance shares and deferred compensation equity plan. Common shares issuable upon conversion of the Mandatory Convertible Preferred Stock (MCPS) are included in the calculation of diluted earnings per share using the if-converted method and are only included if the conversion would be further dilutive to the calculation.

The following table sets forth the computation of basic and diluted earnings per share for the years ended September 30, 2019, 2018 and 2017:

	For the Years Ended September 30,
(in millions, except per share data)	2019			2018		2017
Basic earnings per share
Net earnings from continuing operations	$	64.7		$	93.5	$	201.5
Mandatory preferred stock dividends	(12.0		)	—		—
Net earnings from continuing operations attributable to common shareholders	52.7			93.5		201.5
Net loss from discontinued operations, net of tax	(13.6		)	—		—
Net earnings attributable to common shareholders	$	39.1		$	93.5	$	201.5
Weighted average common shares outstanding - basic	66.4			59.8		61.7
Basic net earnings per common share from continuing operations	$	0.79		$	1.56	$	3.27
Basic net loss per common share from discontinued operations	(0.20		)	—		—
Basic net earnings per common share	$	0.59		$	1.56	$	3.27
Diluted earnings per share
Net earnings attributable to common shareholders	$	39.1		$	93.5	$	201.5
Weighted average common shares outstanding - basic	66.4			59.8		61.7
Effect of dilutive restricted stock equivalents	0.3			0.5		0.5
Effect of dilutive performance shares	0.4			0.9		0.4
Effect of stock based deferred compensation plan	0.2			0.2		—
Weighted average common shares outstanding - diluted	67.3			61.4		62.6
Diluted earnings per common share from continuing operations	$	0.78		$	1.52	$	3.22
Diluted loss per common share from discontinued operations	(0.20		)	—		—
Diluted net earnings per common share	$	0.58		$	1.52	$	3.22

For the year ended September 30, 2019, 0.2 million restricted stock equivalents were anti-dilutive and not included in the diluted net earnings per share calculations. For the years ended September 30, 2018 and 2017, all restricted stock equivalents were dilutive and included in the diluted net earnings per share calculations. Performance based restricted stock equivalents of 0.9, 0.5, and 0.5 were excluded for the years ended September 30, 2019, 2018, and 2017, respectively, as the performance targets for those shares had not been achieved as of the end of the current period.

During the prior fiscal year, a portion of the Company's unfunded deferred compensation plan was modified to be paid out in shares rather than cash payment. As a result of the modification, $12.0 is now included as an equity compensation plan. This modification resulted in approximately 200,000 additional dilutive shares for the twelve months ended September 30, 2018.