Earnings per Common Share

12 Months Ended

Dec. 31, 2020

Earnings per Common Share:

The following table sets forth the computation of basic and diluted earnings per common share (in millions, except per share amounts):


	For the Year Ended December 31,
	2020		2019		2018
Basic:
Numerator:
Income from continuing operations	$	368.8	$	446.4	$	374.3
Less: Net income attributable to noncontrolling interests included in continuing operations	(84.6)		(87.1)		(83.1)
Less: Income allocated to participating securities	(1.0)		(1.3)		(0.9)


Income from continuing operations attributable to Encompass Health common shareholders	283.2		358.0		290.3
(Loss) income from discontinued operations, net of tax, attributable to Encompass Health common shareholders	—		(0.6)		1.1

Net income attributable to Encompass Health common shareholders	$	283.2	$	357.4	$	291.4
Denominator:
Basic weighted average common shares outstanding	98.6		98.0		97.9
Basic earnings per share attributable to Encompass Health common shareholders:
Continuing operations	$	2.87	$	3.66	$	2.97
Discontinued operations	—		(0.01)		0.01
Net income	$	2.87	$	3.65	$	2.98

Diluted:
Numerator:
Income from continuing operations	$	368.8	$	446.4	$	374.3
Less: Net income attributable to noncontrolling interests included in continuing operations	(84.6)		(87.1)		(83.1)


Income from continuing operations attributable to Encompass Health common shareholders	284.2		359.3		291.2
(Loss) income from discontinued operations, net of tax, attributable to Encompass Health common shareholders	—		(0.6)		1.1
Net income attributable to Encompass Health common shareholders	$	284.2	$	358.7	$	292.3
Denominator:
Diluted weighted average common shares outstanding	99.8		99.4		99.8
Diluted earnings per share attributable to Encompass Health common shareholders:
Continuing operations	$	2.85	$	3.62	$	2.92
Discontinued operations	—		(0.01)		0.01
Net income	$	2.85	$	3.61	$	2.93

The following table sets forth the reconciliation between basic weighted average common shares outstanding and diluted weighted average common shares outstanding (in millions):


	For the Year Ended December 31,
	2020	2019	2018
Basic weighted average common shares outstanding	98.6	98.0	97.9


Restricted stock awards, dilutive stock options, and restricted stock units	1.2	1.4	1.9
Diluted weighted average common shares outstanding	99.8	99.4	99.8

Options to purchase approximately 0.2 million and 0.1 million shares of common stock were outstanding as of December 31, 2020 and 2019, respectively, but were not included in the computation of diluted weighted-average shares because to do so would have been antidilutive. There were no antidilutive options to purchase shares of common stock outstanding as of December 31, 2018.

In February 2014, our board of directors approved an increase in our common stock repurchase authorization from $200 million to $250 million. The repurchase authorization does not require the repurchase of a specific number of shares, has an indefinite term, and is subject to termination at any time by our board of directors. On July 24, 2018, the Company's board approved resetting the aggregate common stock repurchase authorization to $250 million. During 2020 and 2019, we repurchased 0.1 million and 0.8 million shares of our common stock in the open market for $6.1 million and $45.9 million, respectively. There were no repurchases of our common stock during 2018.

In July 2017, our board of directors approved an increase in our quarterly dividend and declared a cash dividend of $0.25 per share. The cash dividend of $0.25 per common share was declared and paid in each quarter through July 2018. In July 2018, our board of directors approved an increase in our quarterly dividend and declared a cash dividend of $0.27 per share. The cash dividend of $0.27 per common share was declared and paid in each quarter through July 2019. In July 2019, our board of directors approved an increase in our quarterly dividend and declared a cash dividend of $0.28 per share. The cash dividend of $0.28 per common share was declared and paid in each quarter through January 2021. Future dividend payments are subject to declaration by our board of directors.