Basic and diluted earnings per share are calculated using the treasury stock method.



(Thousands of dollars except per share data)	Three Months Ended June 30,					Six Months Ended June 30,
	2018		2017			2018		2017
Basic
Average common shares outstanding	92,926,421		92,841,148			93,132,993		92,695,853
Net income
Continuing operations	$	403,604	$	360,651		$	653,731	$	599,803
Discontinued operations ⁽²⁾	—		(41,540		)	—		(41,540		)
Net income	$	403,604	$	319,111		$	653,731	$	558,263
Basic net income per common share
Continuing operations	$	4.34	$	3.89		$	7.02	$	6.47
Discontinued operations ⁽²⁾	—		(.45		)	—		(.45		)
Net income per common share	$	4.34	$	3.44		$	7.02	$	6.02

Diluted
Average common shares outstanding	92,926,421		92,841,148			93,132,993		92,695,853
Stock options and other contingently issuable shares ⁽¹⁾	1,903,442		2,055,422			2,064,944		1,935,690
Non-vested restricted stock grants	54,324		72,066			61,019		65,896
Average common shares outstanding assuming dilution	94,884,187		94,968,636			95,258,956		94,697,439
Net income
Continuing operations	$	403,604	$	360,651		$	653,731	$	599,803
Discontinued operations ⁽²⁾	—		(41,540		)	—		(41,540		)
Net income	$	403,604	$	319,111		$	653,731	$	558,263
Diluted net income per common share
Continuing operations	$	4.25	$	3.80		$	6.86	$	6.34
Discontinued operations ⁽²⁾	—		(.44		)	—		(.44		)
Net income per common share	$	4.25	$	3.36		$	6.86	$	5.90


⁽¹⁾	Stock options and other contingently issuable shares for the three and six months ended June 30, 2018 excludes 52,427 and 26,873 shares, respectively, due to their anti-dilutive effect. There were no stock options and other contingently issuable shares excluded due to their anti-dilutive effect for the three and six months ended June 30, 2017.


⁽²⁾	Relates to the divestiture of Valspar's North American industrial wood coatings business. See Note 4.