EARNINGS PER SHARE

The computation of basic and diluted earnings per share for net income attributable to Wabtec shareholders is as follows:



	Three Months Ended June 30,
In thousands, except per share data	2018			2017
Numerator
Numerator for basic and diluted earnings per common share - net income attributable
to Wabtec shareholders	$	84,416		$	72,025
Less: dividends declared - common shares and non-vested restricted stock	(11,565		)	(9,605		)
Undistributed earnings	72,851			62,420
Percentage allocated to common shareholders (1)	99.7		%	99.7		%
	72,632			62,233
Add: dividends declared - common shares	11,531			9,576
Numerator for basic and diluted earnings per common share	$	84,163		$	71,809
Denominator
Denominator for basic earnings per common share - weighted average shares	95,992			95,641
Effect of dilutive securities:
Assumed conversion of dilutive stock-based compensation plans	583			643
Denominator for diluted earnings per common share -
adjusted weighted average shares and assumed conversion	96,575			96,284
Net income attributable to Wabtec shareholders per common share
Basic	$	0.88		$	0.75
Diluted	$	0.87		$	0.75



(1) Basic weighted-average common shares outstanding	95,992		95,641
Basic weighted-average common shares outstanding and non-vested restricted stock expected to vest	96,276		95,917
Percentage allocated to common shareholders	99.7	%	99.7	%



	Six Months Ended June 30,
In thousands, except per share data	2018			2017
Numerator
Numerator for basic and diluted earnings per common share - net income attributable
to Wabtec shareholders	$	172,782		$	145,914
Less: dividends declared - common shares and non-vested restricted stock	(23,096		)	(19,177		)
Undistributed earnings	149,686			126,737
Percentage allocated to common shareholders (1)	99.7		%	99.7		%
	149,237			126,357
Add: dividends declared - common shares	23,027			19,120
Numerator for basic and diluted earnings per common share	$	172,264		$	145,477
Denominator
Denominator for basic earnings per common share - weighted average shares	95,867			95,370
Effect of dilutive securities:
Assumed conversion of dilutive stock-based compensation plans	604			701
Denominator for diluted earnings per common share -
adjusted weighted average shares and assumed conversion	96,471			96,071
Net income attributable to Wabtec shareholders per common share
Basic	$	1.80		$	1.52
Diluted	$	1.79		$	1.52



(1) Basic weighted-average common shares outstanding	95,867		95,370
Basic weighted-average common shares outstanding and non-vested restricted stock expected to vest	96,153		95,666
Percentage allocated to common shareholders	99.7	%	99.7	%

The Company’s non-vested restricted stock contains rights to receive nonforfeitable dividends, and thus are participating securities requiring the two-class method of computing earnings per share. The calculation of earnings per share for common stock shown above excludes the income attributable to the non-vested restricted stock from the numerator and excludes the dilutive impact of those shares from the denominator.