Earnings Per Share

9 Months Ended

Sep. 30, 2020

The two-class method is utilized for the computation of the Company’s EPS. The two-class method requires a portion of net income to be allocated to participating securities, which are unvested awards of share-based payments with non-forfeitable rights to receive dividends. The Company’s RSAs are participating securities. Income allocated to these participating securities is excluded from net earnings available to common shares, as shown in the table below. Basic EPS is computed by dividing net income available to basic common shares by the weighted average number of basic common shares outstanding during the period. Diluted EPS is computed by dividing net income available to diluted common shares by the weighted average number of dilutive common shares outstanding during the period.

The following table sets forth the calculation of EPS for the three and nine months ended September 30, 2020 and 2019 (in millions, except share and per share data):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Weighted average basic common shares outstanding	17,776,888		17,961,555		17,770,619		17,889,572
Dilutive effect of stock-based awards and employee stock purchases	58,661		17,145		47,919		17,978
Weighted average dilutive common shares	17,835,549		17,978,700		17,818,538		17,907,550
Basic:
Net income (loss)	$	126.4	$	38.0	$	186.4	$	125.9
Less: Earnings (loss) allocated to participating securities	4.6		1.4		6.7		4.7
Net income (loss) available to basic common shares	$	121.9	$	36.7	$	179.7	$	121.2
Basic earnings (loss) per common share	$	6.86	$	2.04	$	10.11	$	6.78
Diluted:
Net income (loss)	$	126.4	$	38.0	$	186.4	$	125.9
Less: Earnings (loss) allocated to participating securities	4.5		1.4		6.7		4.7
Net income (loss) available to diluted common shares	$	121.9	$	36.7	$	179.7	$	121.2
Diluted earnings (loss) per common share	$	6.83	$	2.04	$	10.08	$	6.77