Earnings Per Share

12 Months Ended

Sep. 30, 2019

We use the two-class method of computing earnings per share because we have participating securities in the form of non-vested restricted stock units with a nonforfeitable right to dividend equivalents, for which vesting is predicated solely on the passage of time. The calculation of earnings per share using the two-class method excludes income attributable to these participating securities from the numerator and excludes the dilutive impact of those shares from the denominator. Basic weighted average shares outstanding is calculated based upon the weighted average number of common shares outstanding during the periods presented. Also, this calculation includes fully vested stock awards that have not yet been issued as common stock. Additionally, the weighted average shares outstanding for diluted EPS includes the incremental effects of the forward sale agreements, discussed in Note 7, when the impact is dilutive.

Basic and diluted earnings per share for the fiscal years ended September 30 are calculated as follows:



	2019		2018		2017
	(In thousands, except per share data)
Basic Earnings Per Share from continuing operations
Income from continuing operations	$	511,406	$	603,064	$	382,711
Less: Income from continuing operations allocated to participating securities	416		580		475
Income from continuing operations available to common shareholders	$	510,990	$	602,484	$	382,236
Basic weighted average shares outstanding	117,200		111,012		106,100
Income from continuing operations per share — Basic	$	4.36	$	5.43	$	3.60

Basic Earnings Per Share from discontinued operations
Income from discontinued operations	$	—	$	—	$	13,710
Less: Income from discontinued operations allocated to participating securities	—		—		12
Income from discontinued operations available to common shareholders	$	—	$	—	$	13,698
Basic weighted average shares outstanding	117,200		111,012		106,100
Income from discontinued operations per share - Basic	$	—	$	—	$	0.13
Net Income per share — Basic	$	4.36	$	5.43	$	3.73

Diluted Earnings Per Share from continuing operations
Income from continuing operations available to common shareholders	$	510,990	$	602,484	$	382,236
Effect of dilutive shares	—		—		—
Income from continuing operations available to common shareholders	$	510,990	$	602,484	$	382,236
Basic weighted average shares outstanding	117,200		111,012		106,100
Dilutive shares	261		—		—
Diluted weighted average shares outstanding	117,461		111,012		106,100
Income from continuing operations per share — Diluted	$	4.35	$	5.43	$	3.60

Diluted Earnings Per Share from discontinued operations
Income from discontinued operations available to common shareholders	$	—	$	—	$	13,698
Effect of dilutive shares	—		—		—
Income from discontinued operations available to common shareholders	$	—	$	—	$	13,698
Basic weighted average shares outstanding	117,200		111,012		106,100
Dilutive shares	261		—		—
Diluted weighted average shares outstanding	117,461		111,012		106,100
Income from discontinued operations per share - Diluted	$	—	$	—	$	0.13
Net Income per share — Diluted	$	4.35	$	5.43	$	3.73