Earnings Per Common Share

Basic earnings per common share is computed by dividing net income remaining after allocation to unvested restricted shares, which includes unvested restricted shares of Arcosa stock held by employees of the Former Parent, by the weighted average number of basic common shares outstanding for the period. Except when the effect would be antidilutive, the calculation of diluted earnings per common share includes the weighted average net impact of nonparticipating unvested restricted shares. For periods prior to the Separation, the denominator for basic and diluted net income per share was calculated using the 48.8 million shares of common stock outstanding immediately following the Separation. Total weighted average restricted shares were 1.7 million for the three and six months ended June 30, 2019, respectively. There were no weighted average restricted shares prior to the Separation.

The computation of basic and diluted earnings per share follows.



	Three Months Ended June 30, 2019						Three Months Ended June 30, 2018
	Income (Loss)			Average Shares	EPS		Income (Loss)		Average Shares	EPS
	(in millions, except per share amounts)
Net income	$	31.8					$	22.6
Unvested restricted share participation	(0.3		)				—
Net income – basic	31.5			47.8	$	0.66	22.6		48.8	$	0.46
Effect of dilutive securities:
Nonparticipating unvested restricted shares	—			0.5			—		—
Net income – diluted	$	31.5		48.3	$	0.65	$	22.6	48.8	$	0.46

	Six Months Ended June 30, 2019						Six Months Ended June 30, 2018
	Income (Loss)			Average Shares	EPS		Income (Loss)		Average Shares	EPS
	(in millions, except per share amounts)
Net income	$	59.5					$	44.8
Unvested restricted share participation	(0.7		)				—
Net income – basic	58.8			47.9	$	1.23	44.8		48.8	$	0.92
Effect of dilutive securities:
Nonparticipating unvested restricted shares	—			0.5			—		—
Net income – diluted	$	58.8		48.4	$	1.21	$	44.8	48.8	$	0.92