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Earnings Per Share
 9 Months Ended
Sep. 30, 2013
Earnings Per Share [Abstract]  
Earnings Per Share
Earnings Per Share

Basic earnings per common share (“EPS”) is computed by dividing net income attributable to the common shareholders of the Company by the weighted-average number of common shares outstanding. Diluted EPS is computed in the same manner as basic EPS, except the number of shares is increased to include additional common shares that would have been outstanding if potential common shares with a dilutive effect had been issued. Potential common shares consist primarily of stock options, restricted stock and restricted stock units calculated using the treasury stock method.

The calculation for basic and diluted EPS for the periods ended September 30 is as follows: 
(in millions, except per share amounts)
Three Months
 
Nine Months
 
2013
 
2012
 
2013
 
2012
Amounts attributable to McGraw Hill Financial, Inc. common shareholders:
 
 
 
 
 
 
 
Income from continuing operations
$
235

 
$
151

 
$
638

 
$
486

(Loss) income from discontinued operations
(20
)
 
163

 
566

 
167

Net income
$
215

 
$
314

 
$
1,204

 
$
653

 
 
 
 
 
 
 
 
Basic weighted-average number of common shares outstanding
272.8

 
278.7

 
275.8

 
278.8

Effect of stock options and other dilutive securities
6.0

 
5.9

 
4.6

 
5.8

Diluted weighted-average number of common shares outstanding
278.8

 
284.6

 
280.4

 
284.6

 
 
 
 
 
 
 
 
Earnings per share attributable to McGraw Hill Financial, Inc. common shareholders:
 
 
 
 
 
 
 
Income from continuing operations:
 
 
 
 
 
 
 
Basic
$
0.86

 
$
0.54

 
$
2.31

 
$
1.74

Diluted
$
0.84

 
$
0.53

 
$
2.27

 
$
1.71

Income from discontinued operations:
 
 
 
 
 
 
 
Basic
$
(0.07
)
 
$
0.58

 
$
2.05

 
$
0.60

Diluted
$
(0.07
)
 
$
0.57

 
$
2.02

 
$
0.59

Net income:
 
 
 
 
 
 
 
Basic
$
0.79

 
$
1.13

 
$
4.36

 
$
2.34

Diluted
$
0.77

 
$
1.10

 
$
4.29

 
$
2.29



Restricted performance shares outstanding of 0.9 million and 2.7 million as of September 30, 2013 and 2012, respectively, were not included in the computation of diluted EPS because the necessary vesting conditions had not been met.

The effect of the potential exercise of stock options is excluded from the computation of diluted EPS when the average market price of our common stock is lower than the exercise price of the related option during the period because the effect would have been antidilutive. The number of stock options excluded from the diluted EPS computation for the periods ended September 30 is as follows:
(in millions)
Three Months
 
Nine Months
 
2013
 
2012
 
2013
 
2012
Stock options excluded from diluted EPS computation
1.2

 
3.2

 
2.7

 
3.9