Earnings Per Share

9 Months Ended

Sep. 30, 2017

The following table sets forth the reconciliation of the numerator and the denominator of basic earnings per share and diluted earnings per share for the three and nine months ended September 30, 2017 and 2016, respectively:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Numerator:
Net income attributable to The Timken Company	$	53.5	$	33.6	$	174.2	$	147.7
Less: undistributed earnings allocated to nonvested stock	—		—		—		—
Net income available to common shareholders for basic earnings per share and diluted earnings per share	$	53.5	$	33.6	$	174.2	$	147.7
Denominator:
Weighted average number of shares outstanding, basic	77,694,974		77,935,783		77,766,828		78,808,179
Effect of dilutive securities:
Stock options and awards based on the treasury stock method	1,109,322		681,693		1,123,102		663,577
Weighted average number of shares outstanding, assuming dilution of stock options and awards	78,804,296		78,617,476		78,889,930		79,471,756
Basic earnings per share	$	0.69	$	0.43	$	2.24	$	1.87
Diluted earnings per share	$	0.68	$	0.43	$	2.21	$	1.86

The exercise prices for certain stock options that the Company has awarded exceed the average market price of the Company’s common shares. Such stock options are antidilutive and were not included in the computation of diluted earnings per share. The antidilutive stock options outstanding during the three months ended September 30, 2017 and 2016 were 473,694 and 2,706,711, respectively. During the nine months ended September 30, 2017 and 2016, the antidilutive stock options outstanding were 529,020 and 3,080,133, respectively.