Earnings Per Share

12 Months Ended

Dec. 31, 2017

—Earnings Per Share

The Company’s restricted shares and restricted stock units contain non-forfeitable rights to dividends and are considered participating securities for purposes of computing earnings per share pursuant to the two-class method. The computation below of earnings per share excludes the income attributable to the unvested restricted shares and restricted stock units from the numerator and excludes the dilutive impact of those underlying shares from the denominator. Stock options are included in the calculation of diluted earnings per share utilizing the treasury stock method and performance share awards are included in the calculation of diluted earnings per share considering those are contingently issuable. Neither is considered to be a participating security as they do not contain non‑forfeitable dividend rights.

The following reflects income from continuing operations and share data used in the basic and diluted earnings per share computations using the two‑class method for the years ended December 31:



(in millions except share and per share amounts)	2017			2016			2015
Income from continuing operations	$	365.3		$	250.8		$	319.6
Less: dividends declared - common stock outstanding, restricted shares and restricted share units	(92.1		)	(84.5		)	(72.3		)
Undistributed earnings	273.2			166.3			247.3
Percent allocated to common shareholders⁽¹⁾	99.3		%	99.3		%	99.3		%
	271.3			165.0			245.6
Add: dividends declared - common stock	90.9			83.6			71.4
Income from continuing operations attributable to common shares	$	362.2		$	248.6		$	317.0

Shares (in thousands):
Weighted-average common shares outstanding	63,073			64,226			64,844
Effect of dilutive securities:
Performance awards	137			257			253
Stock options	341			400			707
Adjusted weighted-average common shares outstanding and assumed conversion	63,551			64,883			65,804

Per share income from continuing operations:
Basic	$	5.75		$	3.87		$	4.89
Diluted	$	5.71		$	3.83		$	4.82

⁽¹⁾Basic weighted-average common shares outstanding	63,073			64,226			64,844
Basic weighted-average common shares outstanding, unvested restricted shares expected to vest and restricted share units	63,513			64,682			65,304
Percent allocated to common shareholders	99.3		%	99.3		%	99.3		%

The denominator for both basic and diluted earnings per share is the same as used in the above table to calculate per share amounts for the income from discontinued operations and net income. The income from discontinued operations and net income for the years ended December 31 follows:



(in millions except share amounts presented in thousands)	2017		2016			2015
Income (loss) from discontinued operations	$	0.2	$	(0.7	)	$	0.1
Net income attributable to common shareholders for basic and diluted earnings per share	$	362.4	$	248.0		$	317.1
Anti-dilutive stock options excluded from EPS calculation⁽¹⁾	320.6		23.1			257.5

⁽¹⁾

Represents stock options excluded from the calculation of diluted earnings per share as such options’ assumed proceeds upon exercise would result in the repurchase of more shares than the underlying award.