
12.	EARNINGS PER SHARE (EPS)

We present earnings per share using the two-class method. This method allocates undistributed earnings between common shares and non-vested share based payment awards that entitle the holder to non-forfeitable dividend rights. Our participating securities include non-vested restricted stock units.

The following table sets forth the computation of our basic and diluted EPS available to shareholders of common stock (excluding participating securities):



	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2017			2016			2017			2016
	(in millions, except per share data)
Numerator
Net income attributable to AAM	$	86.2		$	61.7		$	230.8		$	193.8
Less: Net income attributable to participating securities	(1.9		)	(1.4		)	(5.1		)	(4.4		)
Net income attributable to common shareholders - Basic and Dilutive	$	84.3		$	60.3		$	225.7		$	189.4

Denominators
Basic common shares outstanding -
Weighted-average shares outstanding	113.9			78.3			101.5			78.2
Less: Participating securities	(2.6		)	(1.8		)	(2.3		)	(1.8		)
Weighted-average common shares outstanding	111.3			76.5			99.2			76.4

Effect of dilutive securities -
Dilutive stock-based compensation	0.4			0.5			0.4			0.4

Diluted shares outstanding -
Adjusted weighted-average shares after assumed conversions	111.7			77.0			99.6			76.8

Basic EPS	$	0.76		$	0.79		$	2.28		$	2.48

Diluted EPS	$	0.75		$	0.78		$	2.27		$	2.47

Certain exercisable stock options were excluded from the computations of diluted EPS because the exercise price of these options was greater than the average period market prices. There were no stock options excluded from the calculation of diluted EPS at September 30, 2017. The number of stock options outstanding, which were not included in the calculation of diluted EPS, was 0.2 million, with an exercise price of $26.02, at September 30, 2016.