Earnings Per Share

6 Months Ended

Jun. 30, 2015

Note 7—Earnings Per Share

The Company’s restricted shares and restricted stock units contain nonforfeitable rights to dividends and, therefore, 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 that are contingently issuable. Neither is considered to be a participating security as they do not contain non-forfeitable dividend rights.

The following reflects the 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 June 30,						Six Months Ended June 30,
(in millions except share and per share amounts)	2015			2014			2015			2014

Numerator:

Income from continuing operations	$	94.8		$	75.7		$	134.3		$	112.1
Less: dividends declared - common stock outstanding, restricted shares and restricted share units	(16.4		)	(14.6		)	(33.1		)	(28.8		)

Undistributed earnings	78.4			61.1			101.2			83.3
Percent allocated to common shareholders (1)	99.5		%	99.5		%	99.5		%	99.5		%

	78.0			60.8			100.7			82.9
Add: dividends declared - common stock	16.3			14.1			32.5			28.2

Numerator for basic and diluted EPS	$	94.3		$	74.9		$	133.2		$	111.1


Denominator (in thousands):
Denominator for basic EPS: weighted-average common shares outstanding	65,010			64,100			64,943			63,990
Effect of dilutive securities:
Performance awards	342			364			342			364
Stock options	666			977			648			975

Denominator for diluted EPS: adjusted weighted-average common shares outstanding and assumed conversion	66,018			65,441			65,933			65,329


Per share income from continuing operations:
Basic	$	1.45		$	1.17		$	2.05		$	1.73

Diluted	$	1.43		$	1.15		$	2.02		$	1.70

(1)Basic weighted-average common shares outstanding	65,010		64,100		64,943		63,990
Basic weighted-average common shares outstanding, unvested restricted shares expected to vest and restricted share units	65,344		64,444		65,276		64,333

Percent allocated to common shareholders	99.5	%	99.5	%	99.5	%	99.5	%

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 (loss) from discontinued operations and Net income were as follows:

	Three Months Ended June 30,					Six Months Ended June 30,
(in millions)	2015		2014			2015		2014

Income (loss) from discontinued operations attributable to common shareholders for basic and diluted earnings per share	$	0.1	$	(0.5	)	$	—	$	(1.1	)

Net income attributable to common shareholders for basic and diluted earnings per share	$	94.4	$	74.4		$	133.2	$	110.0