Earnings Per Common Share

9 Months Ended

Sep. 30, 2020

The following table sets forth the components of the numerator and denominator for the computation of basic and diluted earnings per share for net income attributable to Tempur Sealy International.


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions, except per common share amounts)	2020		2019		2020		2019
Numerator:
Income from continuing operations, net of income attributable to non-controlling interests	$	119.0	$	72.5	$	202.8	$	144.1

Denominator:
Denominator for basic earnings per common share-weighted average shares	51.6		54.6		52.2		54.7
Effect of dilutive securities:
Employee stock-based compensation	1.3		1.2		0.7		1.3
Denominator for diluted earnings per common share-adjusted weighted average shares	52.9		55.8		52.9		56.0

Basic earnings per common share for continuing operations	$	2.31	$	1.33	$	3.89	$	2.63

Diluted earnings per common share for continuing operations	$	2.25	$	1.30	$	3.83	$	2.57

The Company excluded an insignificant number of shares for the three months ended September 30, 2020, from the diluted earnings per common share computation because their exercise price was greater than the average market price of Tempur Sealy International's common stock or they were otherwise anti-dilutive. The Company did not exclude any shares for the three months ended September 30, 2019. The Company excluded 0.5 million and 1.1 million shares issuable upon exercise of outstanding stock options for the nine months ended September 30, 2020 and 2019, respectively, from the diluted earnings per common share computation because their exercise price was greater than the average market price of Tempur Sealy International's common stock or they were otherwise anti-dilutive. Holders of non-vested stock-based compensation awards do not have voting rights.