Net Earnings per Common Share

12 Months Ended

Dec. 31, 2020

The following table sets forth the calculation of basic and diluted net earnings per common share under the two-class method for the years ended December 31:


	Year Ended December 31,
(In millions, except per share amounts)	2020		2019		2018
Basic Net Earnings Per Common Share:
Numerator
Net earnings	$	502.9	$	263.0	$	193.1
Distributed and allocated undistributed net earnings to unvested restricted stockholders	(0.2)		(0.5)		(0.9)
Distributed and allocated undistributed net earnings	502.7		262.5		192.2
Distributed net earnings - dividends paid to common stockholders	(99.4)		(98.7)		(101.7)
Allocation of undistributed net earnings to common stockholders	$	403.3	$	163.8	$	90.5
Denominator
Weighted average number of common shares outstanding - basic	155.2		154.3		159.4
Basic net earnings per common share:
Distributed net earnings	$	0.64	$	0.64	$	0.64
Allocated undistributed net earnings to common stockholders	2.60		1.06		0.57
Basic net earnings per common share	$	3.24	$	1.70	$	1.21
Diluted Net Earnings Per Common Share:
Numerator
Distributed and allocated undistributed net earnings to common stockholders	$	502.7	$	262.5	$	192.2
Add: Allocated undistributed net earnings to unvested restricted stockholders	0.1		0.4		0.5
Less: Undistributed net earnings reallocated to unvested restricted stockholders	(0.1)		(0.4)		(0.5)
Net earnings available to common stockholders - diluted	$	502.7	$	262.5	$	192.2
Denominator
Weighted average number of common shares outstanding - basic	155.2		154.3		159.4
Effect of unvested restricted stock - nonparticipating security	0.1		—		—
Effect of contingently issuable shares	0.2		0.2		0.1
Effect of unvested restricted stock units	0.5		0.3		0.3
Weighted average number of common shares outstanding - diluted under two-class	156.0		154.8		159.8
Effect of unvested restricted stock - participating security	—		0.4		0.4
Weighted average number of common shares outstanding - diluted under treasury stock	156.0		155.2		160.2
Diluted net earnings per common share	$	3.22	$	1.69	$	1.20

PSU Awards

We included contingently issuable shares using the treasury stock method for our PSU awards in the diluted weighted average number of common shares outstanding based on the number of contingently issuable shares that would be issued assuming the end of our reporting period was the end of the relevant PSU award contingency period. The calculation of diluted weighted average shares outstanding related to PSUs was nominal in 2020, 2019 and 2018.

SLO Awards

The shares or units associated with the 2020 SLO awards are considered contingently issuable shares and therefore are not included in the basic or diluted weighted average number of common shares outstanding for the year ended December 31, 2020.

These shares or units will not be included in the common shares outstanding until the final determination of the amount of annual incentive compensation is made in the first quarter of 2021. Once this determination is made, the shares or units will be included in diluted weighted average number of common shares outstanding if the impact to diluted net earnings per common share is dilutive. The numbers of shares or units associated with SLO awards for 2020, 2019 and 2018 were nominal.