Earnings Per Share

3 Months Ended

Mar. 31, 2017

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 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 March 31,
(in millions except share and per share amounts)	2017			2016
Income from continuing operations	$	61.5		$	68.5
Less: dividends declared - common stock outstanding, restricted shares and restricted share units	(22.7		)	(19.5		)
Undistributed earnings	38.8			49.0
Percent allocated to common shareholders ⁽¹⁾	99.3		%	99.3		%
	38.5			48.6
Add: dividends declared - common stock	22.5			19.2
Income from continuing operations attributable to common shares	$	61.0		$	67.8

Shares (in thousands):
Weighted-average common shares outstanding	64,353			64,018
Effect of dilutive securities:
Performance awards	107			325
Stock options	388			533
Adjusted weighted-average common shares outstanding and assumed conversion	64,848			64,876

Per share income from continuing operations attributable to common shares:
Basic	$	0.95		$	1.06
Diluted	$	0.94		$	1.05

⁽¹⁾ Basic weighted-average common shares outstanding	64,353			64,018
Basic weighted-average common shares outstanding, unvested restricted shares expected to vest and restricted share units	64,822			64,491
Percent allocated to common shareholders	99.3		%	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. Income from discontinued operations and net income used in the basic and diluted earnings per share computations were as follows:



	Three Months Ended March 31,
(in millions except share amounts presented in thousands)	2017		2016
Income from discontinued operations attributable to common shareholders for basic and diluted earnings per share	$	0.3	$	—
Net income attributable to common shareholders for basic and diluted earnings per share	$	61.3	$	67.8
Anti-dilutive stock options excluded from EPS calculation ⁽¹⁾	210		544

⁽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.