Earnings per share

3 Months Ended

Dec. 31, 2020

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 share awards and deferred compensation equity plans. Common shares issuable upon conversion of the 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 quarters ended December 31, 2020 and 2019:


(in millions, except per share data)	For the Three Months Ended December 31,
Basic earnings per share		2020		2019
Net earnings from continuing operations		$	67.1	$	45.8
Mandatory preferred stock dividends		(4.0)		(4.0)
Net earnings from continuing operations attributable to common shareholders		63.1		41.8
Net earnings from discontinued operations, net of tax		—		0.3
Net earnings attributable to common shareholders		$	63.1	$	42.1

Weighted average common shares outstanding - Basic		68.5		69.1

Basic net earnings per common share from continuing operations		$	0.92	$	0.60
Basic net earnings per common share from discontinued operations		—		0.01
Basic net earnings per common share		$	0.92	$	0.61

Diluted earnings per share




Weighted average common shares outstanding - Basic		68.5		69.1

Dilutive effect of restricted stock equivalents		0.1		0.2
Dilutive effect of performance shares		0.1		0.7
Dilutive effect of stock based deferred compensation plan		0.1		0.2
Dilutive effect of MCPS		4.7		—
Weighted average common shares outstanding - Diluted		73.5		70.2

Diluted net earnings per common share from continuing operations		$	0.91	$	0.60
Diluted net earnings per common share from discontinued operations		—		—
Diluted net earnings per common share		$	0.91	$	0.60

For the quarters ended December 31, 2020 and 2019, 0.5 million and 0.1 million restricted stock equivalents, respectively, were anti-dilutive and not included in the diluted net earnings per share calculation.

Performance based restricted stock equivalents of 1.5 million and 0.9 million were excluded for the quarters ended December 31, 2020 and 2019, respectively, as they were anti-dilutive or the performance targets for those shares have not been achieved as of the end of the applicable period.

For the quarter ended December 31, 2020, the diluted net earnings per common share is assuming the conversion of the mandatory convertible preferred stock to 4.7 million of common stock, and excluding the mandatory preferred stock dividends from net earnings. For the quarter ended December 31, 2019, the conversion is considered not dilutive and the mandatory preferred stock dividends are included in the dilution calculation.