Earnings Per Share

9 Months Ended

Sep. 30, 2015

Note 7—Earnings Per Share

The Company’s restricted shares and restricted stock units contain non-forfeitable rights to dividends and, therefore, are considered participating securities for purposes of computing earnings per share pursuant to the two-class method. The computation below of earnings per share excludes the income attributable to the unvested restricted shares and restricted stock units from the numerator and excludes the dilutive impact of those underlying shares from the denominator. Stock options are included in the calculation of diluted earnings per share utilizing the treasury stock method and performance share awards are included in the calculation of diluted earnings per share considering those that are contingently issuable. Neither is considered to be a participating security as they do not contain non-forfeitable dividend rights.

The following reflects the Income from continuing operations and share data used in the basic and diluted earnings per share computations using the two-class method:

	Three Months Ended September 30,						Nine Months Ended September 30,
(in millions except share and per share amounts)	2015			2014			2015			2014

Numerator:

Income from continuing operations	$	103.6		$	86.3		$	237.9		$	198.4
Less: dividends declared - common stock outstanding, restricted shares and restricted share units	(19.6		)	(16.2		)	(52.7		)	(45.0		)

Undistributed earnings	84.0			70.1			185.2			153.4
Percent allocated to common shareholders (1)	99.5		%	99.5		%	99.5		%	99.5		%

	83.6			69.7			184.3			152.6
Add: dividends declared - common stock	19.5			16.0			52.0			44.2

Numerator for basic and diluted EPS	$	103.1		$	85.7		$	236.3		$	196.8


Denominator (in thousands):
Denominator for basic EPS: weighted-average common shares outstanding	64,970			64,149			64,952			64,043
Effect of dilutive securities:
Performance awards	348			306			348			306
Stock options	669			992			752			966

Denominator for diluted EPS: adjusted weighted-average common shares outstanding and assumed conversion	65,987			65,447			66,052			65,315


Per share income from continuing operations:
Basic	$	1.59		$	1.34		$	3.64		$	3.07

Diluted	$	1.56		$	1.31		$	3.58		$	3.01



(1)Basic weighted-average common shares outstanding		64,970			64,149			64,952			64,043
Basic weighted-average common shares outstanding, unvested restricted shares expected to vest and restricted share units		65,304			64,492			65,286			64,386

Percent allocated to common shareholders		99.5	%		99.5	%		99.5	%		99.5	%

To calculate earnings per share for Income from discontinued operations and for Net income, the denominator for both basic and diluted earnings per share is the same as used in the above table. Income (loss) from discontinued operations and Net income were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2015		2014		2015		2014

Income (loss) from discontinued operations attributable to common shareholders for basic and diluted earnings per share	$	—	$	1.0	$	—	$	—

Net income attributable to common shareholders for basic and diluted earnings per share	$	103.1	$	86.7	$	236.3	$	196.8