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)	2016			2015			2016			2015
(Loss) income from continuing operations	$	(9.5)		$	103.6		$	174.3		$	237.9
Less: dividends declared - common stock outstanding, restricted shares and restricted share units		(22.8)			(19.6)			(61.8)			(52.7)
Undistributed earnings		(32.3)			84.0			112.5			185.2
Percent allocated to common shareholders (1)		99.3	%		99.5	%		99.3	%		99.5	%
		(32.1)			83.6			111.7			184.3
Add: dividends declared - common stock		22.6			19.5			61.1			52.0
(Loss) income from continuing operations attributable to common shares	$	(9.5)		$	103.1		$	172.8		$	236.3

Shares (in thousands):
Weighted-average common shares outstanding		64,353			64,970			64,206			64,952
Effect of dilutive securities:
Performance awards		-	(2)		348			252			348
Stock options		-	(2)		669			421			752
Adjusted weighted-average common shares outstanding and assumed conversion		64,353			65,987			64,879			66,052

Per share (loss) income from continuing operations:
Basic	$	(0.15)		$	1.59		$	2.69		$	3.64
Diluted	$	(0.15)		$	1.56		$	2.66		$	3.58

(1) Basic weighted-average common shares outstanding		64,353			64,970			64,206			64,952
Basic weighted-average common shares outstanding, unvested restricted shares expected to vest and restricted share units		64,809			65,304			64,662			65,286
Percent allocated to common shareholders		99.3	%		99.5	%		99.3	%		99.5	%

⁽¹⁾

Performance awards and stock options representing approximately 252,000 and 326,000 shares, respectively, for third-quarter 2016 were excluded from adjusted weighted-average common shares outstanding and assumed conversion for purposes of calculating diluted per share loss from continuing operations as they were anti-dilutive.

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 except share amounts presented in thousands)	2016		2015		2016		2015
(Loss) from discontinued operations attributable to common shareholders for basic and diluted earnings per share	$	(0.3)	$	-	$	(0.4)	$	-

Net (loss) income attributable to common shareholders for basic and diluted earnings per share	$	(9.8)	$	103.1	$	172.4	$	236.3

Anti-dilutive stock options excluded from EPS calculation (1)		1		-		125		-

⁽¹⁾

Represents stock options excluded from the calculation of diluted earnings per share as such options’ assumed proceeds upon exercise would result in the repurchase of more shares than the underlying award.