NET INCOME PER COMMON SHARE

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



(Thousands of dollars except per share data)	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Basic
Average common shares outstanding	93,099,714		92,988,118		93,121,900		92,793,275
Net income
Continuing operations	$	354,027	$	316,606	$	1,007,758	$	916,409
Discontinued operations ⁽¹⁾	—		—		—		(41,540		)
Net income	$	354,027	$	316,606	$	1,007,758	$	874,869
Basic net income per common share
Continuing operations	$	3.80	$	3.40	$	10.82	$	9.88
Discontinued operations ⁽¹⁾	—		—		—		(.45		)
Net income per common share	$	3.80	$	3.40	$	10.82	$	9.43

Diluted
Average common shares outstanding	93,099,714		92,988,118		93,121,900		92,793,275
Stock options and other contingently issuable shares ⁽²⁾	1,982,841		2,106,912		1,990,622		1,942,845
Non-vested restricted stock grants	52,702		112,854		58,246		81,549
Average common shares outstanding assuming dilution	95,135,257		95,207,884		95,170,768		94,817,669
Net income
Continuing operations	$	354,027	$	316,606	$	1,007,758	$	916,409
Discontinued operations ⁽¹⁾	—		—		—		(41,540		)
Net income	$	354,027	$	316,606	$	1,007,758	$	874,869
Diluted net income per common share
Continuing operations	$	3.72	$	3.33	$	10.59	$	9.67
Discontinued operations ⁽¹⁾	—		—		—		(.44		)
Net income per common share	$	3.72	$	3.33	$	10.59	$	9.23


⁽¹⁾	Relates to the divestiture of Valspar's North American industrial wood coatings business. See Note 4.

⁽²⁾

Stock options and other contingently issuable shares excluded 28,871 shares due to their anti-dilutive effect for the nine months ended September 30, 2018. There were no options excluded due to their anti-dilutive effect for the three months ended September 30, 2018. Stock options and other contingently issuable shares excluded 26,859 shares due to their anti-dilutive effect for the three and nine months ended September 30, 2017.