Earnings Per Share

6 Months Ended

Jun. 30, 2019

The Company’s restricted shares contain non-forfeitable rights to dividends and 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 in the numerator and excludes the dilutive impact of those underlying shares in the denominator.

The computation below of earnings per share includes the income attributable to the vested and deferred restricted shares and restricted stock units in the numerator and includes the dilutive impact of those underlying shares in the 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 a participating security as they do not contain non-forfeitable dividend rights.

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


	Three Months Ended June 30,									Six Months Ended June 30,
(in millions, except share and per share amounts)	2019			2018			2019			2018
Income from continuing operations	$	153.0		$	114.7		$	230.4		$	172.6
Less: dividends declared	(22.9)			(22.5)			(46.2)			(45.6)
Undistributed earnings	130.1			92.2			184.2			127.0
Percent allocated to common shareholders¹	99.7		%	99.3		%	99.7		%	99.4		%
	129.7			91.6			183.6			126.2
Add: dividends declared on common stock, restricted share units and vested and deferred restricted and performance shares	22.9			22.4			46.1			45.2
Income from continuing operations attributable to common shares	$	152.6		$	114.0		$	229.7		$	171.4

Shares (in thousands):
Basic weighted-average shares outstanding	56,960			60,641			57,246			61,159
Effect of dilutive securities:
Performance awards	192			103			172			103
Stock options	414			315			312			331
Diluted weighted-average shares outstanding	57,566			61,059			57,730			61,593

Per share income from continuing operations attributable to common shares:
Basic	$	2.68		$	1.88		$	4.01		$	2.80
Diluted	$	2.65		$	1.87		$	3.98		$	2.78

^1. Basic weighted-average common shares outstanding (in thousands)	56,960			60,641			57,246			61,159
Basic weighted-average shares outstanding and unvested restricted shares expected to vest (in thousands)	57,145			61,038			57,431			61,556
Percent allocated to common shareholders	99.7		%	99.3		%	99.7		%	99.4		%

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.


	Three Months Ended June 30,						Six Months Ended June 30,
(in millions, except share amounts presented in thousands)	2019		2018		2019		2018
(Loss) income from discontinued operations attributable to common shareholders for basic and diluted earnings per share	$	(0.1)	$	(0.9)	$	1.9	$	249.1
Net income attributable to common shareholders for basic and diluted earnings per share	152.5		113.0		231.6		420.4
Anti-dilutive stock options excluded from EPS calculation¹	2		711		358		644

^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.