Earnings Per Share

12 Months Ended

Dec. 31, 2016

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 are contingently issuable. Neither is considered to be 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:


(in millions except share and per share amounts)	2016			2015			2014
Income from continuing operations	$	250.8		$	319.6		$	251.7
Less: dividends declared - common stock outstanding, restricted shares and restricted share units		(84.5)			(72.3)			(61.2)
Undistributed earnings		166.3			247.3			190.5
Percent allocated to common shareholders (1)		99.3	%		99.3	%		99.5	%
		165.0			245.6			189.5
Add: dividends declared - common stock		83.6			71.4			60.4
Income from continuing operations attributable to common shares	$	248.6		$	317.0		$	249.9

Shares (in thousands):
Weighted-average common shares outstanding		64,226			64,844			64,170
Effect of dilutive securities:
Performance awards		257			253			362
Stock options		400			707			772
Adjusted weighted-average common shares outstanding and assumed conversion		64,883			65,804			65,304

Per share income from continuing operations:
Basic	$	3.87		$	4.89		$	3.89
Diluted	$	3.83		$	4.82		$	3.83

(1) Basic weighted-average common shares outstanding		64,226			64,844			64,170
Basic weighted-average common shares outstanding, unvested restricted shares expected to vest and restricted share units		64,682			65,304			64,512
Percent allocated to common shareholders		99.3	%		99.3	%		99.5	%

To calculate per share amounts for the loss 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. The loss from discontinued operations and net income were as follows:


(in millions except share amounts presented in thousands)	2016		2015		2014
(Loss) income from discontinued operations	$	(0.7)	$	0.1	$	(0.4)

Net income attributable to common shareholders for basic and diluted earnings per share	$	248.0	$	317.1	$	249.5

Anti-dilutive stock options excluded from EPS calculation (1)		23.1		257.5		-

(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.