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 September 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	$	87,739		$	67,399
Less: dividends declared - common shares and non-vested restricted stock	(11,586		)	(11,518		)
Undistributed earnings	76,153			55,881
Percentage allocated to common shareholders (1)	99.7		%	99.7		%
	75,925			55,713
Add: dividends declared - common shares	11,552			11,485
Numerator for basic and diluted earnings per common share	$	87,477		$	67,198
Denominator
Denominator for basic earnings per common share - weighted average shares	96,208			95,709
Effect of dilutive securities:
Assumed conversion of dilutive stock-based compensation plans	429			607
Denominator for diluted earnings per common share -
adjusted weighted average shares and assumed conversion	96,637			96,316
Net income attributable to Wabtec shareholders per common share
Basic	$	0.91		$	0.70
Diluted	$	0.91		$	0.70



(1) Basic weighted-average common shares outstanding	96,208		95,709
Basic weighted-average common shares outstanding and non-vested restricted stock expected to vest	96,495		95,983
Percentage allocated to common shareholders	99.7	%	99.7	%



	Nine Months Ended September 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	$	260,521		$	213,313
Less: dividends declared - common shares and non-vested restricted stock	(34,682		)	(30,693		)
Undistributed earnings	225,839			182,620
Percentage allocated to common shareholders (1)	99.7		%	99.4		%
	225,161			181,524
Add: dividends declared - common shares	34,579			30,508
Numerator for basic and diluted earnings per common share	$	259,740		$	212,032
Denominator
Denominator for basic earnings per common share - weighted average shares	95,935			95,163
Effect of dilutive securities:
Assumed conversion of dilutive stock-based compensation plans	501			645
Denominator for diluted earnings per common share -
adjusted weighted average shares and assumed conversion	96,436			95,808
Net income attributable to Wabtec shareholders per common share
Basic	$	2.71		$	2.23
Diluted	$	2.70		$	2.22



(1) Basic weighted-average common shares outstanding	95,935		95,163
Basic weighted-average common shares outstanding and non-vested restricted stock expected to vest	96,221		95,740
Percentage allocated to common shareholders	99.7	%	99.4	%

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.