EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2023

A reconciliation of net income and shares used to calculate basic and diluted earnings per share is as follows (dollars in millions and shares in thousands):


	Three months ended				Nine months ended
	September 30,				September 30,
	2023		2022		2023		2022
Net income for basic and diluted earnings per share	$	167.3	$	175.9	$	240.2	$	592.6
Shares:
Weighted average shares outstanding for basic earnings per share	112,689		114,354		113,836		116,170
Effect of dilutive securities on weighted average shares:
Amounts related to employee benefit plans	1,773		1,574		1,777		1,902
Weighted average shares outstanding for diluted earnings per share	114,462		115,928		115,613		118,072

Basic earnings per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Restricted shares (including our performance units) are not included in basic earnings per share until vested. Diluted earnings per share reflect the potential dilution that could occur if outstanding stock options were exercised and restricted stock was vested. The dilution from options and restricted shares is calculated using the treasury stock method. Under this method, we assume the proceeds from the exercise of the options (or the unrecognized compensation expense with respect to restricted stock and performance units) will be used to purchase shares of our common stock at the average market price during the period, reducing the dilutive effect of the exercise of the options (or the vesting of the restricted stock and performance units).