Earnings Per Share

9 Months Ended

Sep. 30, 2018

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 includes the income attributable to the vested and deferred restricted shares in the numerator and includes the dilutive impact of those underlying shares in the denominator. 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:


	Three Months Ended September 30,									Nine Months Ended September 30,
(in millions, except share and per share amounts)	2018			2017			2018			2017
Income from continuing operations	$	96.9		$	79.1		$	269.5		$	231.7
Less: dividends declared on common stock outstanding, restricted shares and restricted share units	(24.1)			(23.2)			(69.7)			(69.0)
Undistributed earnings	72.8			55.9			199.8			162.7
Percent allocated to common shareholders¹	99.3		%	99.3		%	99.3		%	99.4		%
	72.3			55.5			198.4			161.6
Add: dividends declared on common stock	23.8			23.2			69.0			68.1
Income from continuing operations attributable to common shares	$	96.1		$	78.7		$	267.4		$	229.7

Shares (in thousands):
Weighted-average common shares outstanding	59,826			62,432			60,712			63,503
Effect of dilutive securities:
Performance awards	118			82			118			82
Stock options	385			283			346			331
Adjusted weighted-average common shares outstanding and assumed conversion	60,329			62,797			61,176			63,916

Per share income from continuing operations attributable to common shares:
Basic	$	1.61		$	1.27		$	4.40		$	3.62
Diluted	$	1.59		$	1.26		$	4.37		$	3.60

¹^. Basic weighted-average common shares outstanding	59,826			62,432			60,712			63,503
Basic weighted-average common shares outstanding, unvested restricted shares expected to vest and restricted share units	60,227			62,846			61,113			63,918
Percent allocated to common shareholders	99.3		%	99.3		%	99.3		%	99.4		%

To calculate earnings per share for income from discontinued operations and for net income, the denominator for both basic and diluted earnings per share is the same as used in the above table. Income from discontinued operations and net income used in the basic and diluted earnings per share computations follows:


	Three Months Ended September 30,						Nine Months Ended September 30,
(in millions, except share amounts presented in thousands)	2018		2017		2018		2017
Income from discontinued operations attributable to common shareholders for basic and diluted earnings per share	$	2.8	$	7.2	$	251.9	$	18.6
Net income attributable to common shareholders for basic and diluted earnings per share	98.9		85.9		519.3		248.4
Anti-dilutive stock options excluded from EPS calculation¹	327		377		604		328

^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.