Note 7—Earnings Per Share

The Company’s restricted shares and restricted stock units contain non-forfeitable 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)	2016			2015			2016			2015

Numerator:

Income from continuing operations	$	115.3		$	94.8		$	183.8		$	134.3
Less: dividends declared - common stock outstanding, restricted shares and restricted share units		(19.5)			(16.4)			(39.0)			(33.1)
Undistributed earnings		95.8			78.4			144.8			101.2
Percent allocated to common shareholders (1)		99.3	%		99.5	%		99.3	%		99.5	%
		95.1			78.0			143.8			100.7
Add: dividends declared - common stock		19.3			16.3			38.5			32.5
Numerator for basic and diluted EPS	$	114.4		$	94.3		$	182.3		$	133.2

Denominator (in thousands):
Denominator for basic EPS: weighted-average common shares outstanding		64,246			65,010			64,131			64,943
Effect of dilutive securities:
Performance awards		445			342			445			342
Stock options		421			666			474			648
Denominator for diluted EPS: adjusted weighted-average common shares outstanding and assumed conversion		65,112			66,018			65,050			65,933

Per share income from continuing operations:
Basic	$	1.78		$	1.45		$	2.84		$	2.05
Diluted	$	1.75		$	1.43		$	2.80		$	2.02

(1)Basic weighted-average common shares outstanding		64,246			65,010			64,131			64,943
Basic weighted-average common shares outstanding, unvested restricted shares expected to vest and restricted share units		64,703			65,344			64,587			65,276
Percent allocated to common shareholders		99.3	%		99.5	%		99.3	%		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 except share amounts presented in thousands)	2016		2015		2016		2015

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

Net income attributable to common shareholders for basic and diluted earnings per share	$	114.3	$	94.4	$	182.2	$	133.2

Antidilutive stock options excluded from EPS calculation (1)		54		-		387		-

(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.