Earnings per Common Share

12 Months Ended

Dec. 31, 2022

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,
	2022		2021		2020
Basic:
Numerator:
Income from continuing operations	$	350.7	$	403.1	$	278.2
Less: Net income attributable to noncontrolling interests included in continuing operations	(93.6)		(103.2)		(83.3)
Less: Income from continuing operations allocated to participating securities	(1.1)		(1.1)		(0.5)


Income from continuing operations attributable to Encompass Health common shareholders	256.0		298.8		194.4
Income from discontinued operations, net of tax	15.2		114.1		90.6
Less: Net income attributable to noncontrolling interests included in discontinued operations	(1.3)		(1.8)		(1.3)
Less: Income from discontinued operations allocated to participating securities	(0.1)		(0.7)		(0.5)
Income from discontinued operations attributable to Encompass Health common shareholders	13.8		111.6		88.8
Net income attributable to Encompass Health common shareholders	$	269.8	$	410.4	$	283.2
Denominator:
Basic weighted average common shares outstanding	99.2		99.0		98.6
Basic earnings per share attributable to Encompass Health common shareholders:
Continuing operations	$	2.58	$	3.02	$	1.97
Discontinued operations	0.14		1.13		0.90
Net income	$	2.72	$	4.15	$	2.87

Diluted:
Numerator:
Income from continuing operations	$	350.7	$	403.1	$	278.2
Less: Net income attributable to noncontrolling interests included in continuing operations	(93.6)		(103.2)		(83.3)


Income from continuing operations attributable to Encompass Health common shareholders	257.1		299.9		194.9
Income from discontinued operations, net of tax	15.2		114.1		90.6
Less: Net income attributable to noncontrolling interests included in discontinued operations	(1.3)		(1.8)		(1.3)
Income from discontinued operations attributable to Encompass Health common shareholders	13.9		112.3		89.3
Net income attributable to Encompass Health common shareholders	$	271.0	$	412.2	$	284.2
Denominator:
Diluted weighted average common shares outstanding	100.4		100.2		99.8
Diluted earnings per share attributable to Encompass Health common shareholders:
Continuing operations	$	2.56	$	2.99	$	1.96
Discontinued operations	0.14		1.12		0.89
Net income	$	2.70	$	4.11	$	2.85

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,
	2022	2021	2020
Basic weighted average common shares outstanding	99.2	99.0	98.6


Restricted stock awards, dilutive stock options, and restricted stock units	1.2	1.2	1.2
Diluted weighted average common shares outstanding	100.4	100.2	99.8

Options to purchase approximately 0.4 million, 0.2 million, and 0.2 million shares of common stock were outstanding during December 31, 2022, 2021, and 2020, respectively, but were not included in the computation of diluted weighted-average shares because to do so would have been antidilutive.

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. There were no repurchases of our common stock during 2022 or 2021. During 2020, we repurchased 0.1 million shares of our common stock in the open market for $6.1 million.

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 July 2022. In July 2022, our board of directors revised our quarterly dividend in response to the Spin Off and declared a cash dividend of $0.15 per share that was paid in October 2022. Also in October 2022, our board of directors declared cash dividends of $0.15 per share that was paid in January 2023. Future dividend payments are subject to declaration by our board of directors.