Earnings Per Share

12 Months Ended

Dec. 31, 2019

—Earnings Per Share

The Company’s restricted shares 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 income attributable to the unvested restricted shares from the numerator and excludes the dilutive impact of those underlying shares from the denominator.

The computation below of earnings per share includes the income attributable to the vested and deferred restricted shares and restricted stock units in the numerator and includes the dilutive impact of those underlying shares in 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.

Income from continuing operations and share data used in the basic and diluted earnings per share computations using the two-class method follows:


(in millions except share and per share amounts)	2019			2018			2017
Income from continuing operations	$	473.7		$	358.6		$	340.6
Less: dividends declared	(102.9)			(93.5)			(92.1)
Undistributed earnings	370.8			265.1			248.5
Percent allocated to common shareholders⁽¹⁾	99.7		%	99.7		%	99.3		%
	369.7			264.3			246.8
Add: dividends declared to common shares, restricted share units and vested and deferred restricted and performance shares	102.7			93.1			90.9
Income from continuing operations attributable to common shareholders	$	472.4		$	357.4		$	337.7

Shares (in thousands):
Basic weighted-average shares outstanding	56,913			60,393			63,073
Effect of dilutive securities:
Performance awards	203			83			137
Stock options	431			310			341
Diluted weighted-average shares outstanding	57,547			60,786			63,551

Per share income from continuing operations attributable to common shares:
Basic	$	8.30		$	5.92		$	5.36
Diluted	$	8.21		$	5.88		$	5.32

⁽¹⁾Basic weighted-average shares outstanding (in thousands)	56,913			60,393			63,073
Basic weighted-average shares outstanding and unvested restricted shares expected to vest (in thousands)	57,086			60,561			63,513
Percent allocated to common shareholders	99.7		%	99.7		%	99.3		%

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.


(in millions except share amounts presented in thousands)	2019		2018		2017
Income from discontinued operations attributable to common shareholders for basic and dilutive earnings per share	$	(0.9)	$	251.8	$	24.8
Net income attributable to common shareholders for basic and diluted earnings per share	471.5		609.2		362.4
Anti-dilutive stock options excluded from EPS calculation⁽¹⁾	1		813		321

⁽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.