Earnings Per Share

3 Months Ended

Mar. 31, 2014

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 three months ended March 31 is as follows:

(in millions, except per share amounts)	2014		2013
Amounts attributable to McGraw Hill Financial, Inc. common shareholders:
Income from continuing operations	$	248	$	153
Income from discontinued operations	—		582
Net income	$	248	$	735
Basic weighted-average number of common shares outstanding	271.8		280.5
Effect of stock options and other dilutive securities	5.4		3.8
Diluted weighted-average number of common shares outstanding	277.2		284.3
Earnings per share attributable to McGraw Hill Financial, Inc. common shareholders:
Income from continuing operations:
Basic	$	0.91	$	0.55
Diluted	$	0.89	$	0.54
Income from discontinued operations:
Basic	$	—	$	2.07
Diluted	$	—	$	2.05
Net income:
Basic	$	0.91	$	2.62
Diluted	$	0.89	$	2.59

Restricted performance shares outstanding of 0.9 million and 1.4 million as of March 31, 2014 and 2013, respectively, were not included in the computation of diluted EPS because the necessary performance 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. For the three months ended March 31, 2014, there were no stock options excluded from the computation as compared to 3.0 million stock options excluded from the computation for the three months ended March 31, 2013.