Earnings Per Share

3 Months Ended

Mar. 31, 2017

16.

Earnings Per Share

The computations of earnings per common share for the three months ended March 31, 2017 and 2016 were as follows:


(In millions, except per share data)	Three Months Ended March 31,
	2017		2016
Net Income	$	77.4	$	61.0
Less: Noncontrolling interest		—		—

Net income attributable to Fortune Brands	$	77.4	$	61.0


Basic earnings per common share	$	0.50	$	0.39
Diluted earnings per common share	$	0.50	$	0.38

Basic average shares outstanding		153.3		155.7
Stock-based awards		2.9		3.8

Diluted average shares outstanding		156.2		159.5
Antidilutive stock-based awards excluded from weighted-average number of shares outstanding for diluted earnings per share		0.6		0.9

In March 2016, the FASB issued ASU 2016-09, which requires entities to recognize the income tax effects of awards in the income statement when the awards vest or are settled. The new standard also allows entities to withhold an amount up to an employee’s maximum individual tax rate in the relevant jurisdiction without resulting in liability classification of the award. The new standard is effective for annual and interim periods beginning January 1, 2017, however, we early adopted this standard as of June 30, 2016. As a result, the first quarter 2016 comparative presentation includes the reclassification of excess tax benefit of $5.3 million from paid-in capital (statements of equity) into the income taxes line on the statements of comprehensive income.

We also reclassified the first quarter 2016 excess tax benefits from the exercise of stock based compensation of $5.8 million from financing activities into operating activities in the statement of cash flows for the three months ended March 31, 2016. Additionally, we have reclassified $8.5 million of employee withholding taxes paid from operating into financing activities in the statement of cash flows for the three months ended March 31, 2016.

The adoption of ASU 2016-09 resulted in an increase of $0.03 in our previously reported basic and diluted earnings per common share for the three months ended March 31, 2016.