INCOME PER COMMON SHARE

12 Months Ended

Dec. 31, 2020

INCOME PER COMMON SHARE

Reconciliations of the numerators and denominators used in the computations of basic and diluted earnings per common share were as follows, in millions:


	2020		2019		2018
Numerator (basic and diluted):
Income from continuing operations	$	810	$	639	$	636
Less: Allocation to unvested restricted stock awards	6		4		6
Income from continuing operations attributable to common shareholders	804		635		630
Income from discontinued operations, net	414		296		98
Less: Allocation to unvested restricted stock awards	3		2		1
Income from discontinued operations, net attributable to common shareholders	411		294		97
Net income attributable to common shareholders	$	1,215	$	929	$	727

Denominator:
Basic common shares (based upon weighted average)	264		287		305
Add: Stock option dilution	—		1		2
Diluted common shares	264		288		307

We follow accounting guidance regarding determining whether instruments granted in share-based payment transactions are participating securities. This accounting guidance clarifies that share-based payment awards that entitle their holders to receive non-forfeitable dividends prior to vesting should be considered participating securities. In 2020, we began granting restricted stock units. The dividends associated with the unvested restricted stock units are forfeitable, and consequently, the restricted stock units are not considered a participating security and are not accounted for under the two-class method. We have also granted restricted stock awards that contain non-forfeitable rights to dividends on unvested shares; such unvested restricted stock awards are considered participating securities. As participating securities, the unvested shares are required to be included in the calculation of our basic income per common share, using the two-class method. The two-class method of computing income per common share is an allocation method that calculates income per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. For the years ended December 31, 2020, 2019 and 2018, we allocated dividends and undistributed earnings to the participating securities.

Additionally, 374,000, 854,000 and 710,000 common shares for 2020, 2019 and 2018, respectively, related to stock options and 20,000 common shares for 2018 related to performance restricted stock units were excluded from the computation of diluted income per common share due to their antidilutive effect.

Common shares outstanding included on our balance sheet and for the calculation of income per common share do not include unvested stock awards (1 million and 2 million common shares at December 31, 2020 and 2019, respectively); shares outstanding for legal requirements included all common shares that have voting rights (including unvested stock awards).