Earnings Per Common Share

12 Months Ended

Dec. 31, 2019

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 1.6 million shares, 0.3 million shares, and 0.0 million shares, for the years ended December 31, 2019, 2018, and 2017, respectively. There were no weighted average restricted shares prior to the Separation.

The computation of basic and diluted earnings per share follows.



	Year Ended December 31, 2019
	(in millions, except per share amounts)
	Income (Loss)			Average Shares	EPS
Net income	$	113.3
Unvested restricted share participation	(1.1		)
Net income per common share – basic	112.2			47.9	$	2.34
Effect of dilutive securities:
Nonparticipating unvested restricted shares	—			0.5
Net income per common share – diluted	$	112.2		48.4	$	2.32



	Year Ended December 31, 2018
	(in millions, except per share amounts)
	Income (Loss)			Average Shares	EPS
Net income	$	75.7
Unvested restricted share participation	(0.2		)
Net income per common share – basic	75.5			48.8	$	1.55
Effect of dilutive securities:
Nonparticipating unvested restricted shares	—			0.1
Net income per common share – diluted	$	75.5		48.9	$	1.54



	Year Ended December 31, 2017
	(in millions, except per share amounts)
	Income (Loss)		Average Shares	EPS
Net income	$	89.7
Unvested restricted share participation	—
Net income per common share – basic	89.7		48.8	$	1.84
Effect of dilutive securities:
Nonparticipating unvested restricted shares	—		—
Net income per common share – diluted	$	89.7	48.8	$	1.84