Earnings Per Common Share

9 Months Ended

Sep. 30, 2023

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)	2023		2022		2023		2022
Numerator:
Net income from continuing operations, net of income attributable to non-controlling interests	$	113.3	$	133.5	$	291.0	$	354.8

Denominator:
Denominator for basic earnings per common share-weighted average shares	172.2		171.9		172.1		176.2
Effect of dilutive securities	5.4		5.1		4.9		5.3
Denominator for diluted earnings per common share-adjusted weighted average shares	177.6		177.0		177.0		181.5

Basic earnings per common share	$	0.66	$	0.78	$	1.69	$	2.01

Diluted earnings per common share	$	0.64	$	0.75	$	1.64	$	1.95

The Company excludes shares issuable upon exercise of outstanding stock options 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, 2023 and excluded 1.5 million shares for the three months ended September 30, 2022. The Company excluded 0.2 million and 0.8 million shares for the nine months ended September 30, 2023 and September 30, 2022, respectively. Holders of non-vested stock-based compensation awards do not have voting rights but do participate in dividend equivalents distributed upon the award vesting.