NOTE 11 EARNINGS (LOSS) PER COMMON SHARE

ASC 260, Earnings per Share, requires companies to treat unvested share-based payment awards that have non-forfeitable rights to dividends or dividend equivalents as a separate class of securities in calculating earnings per share. We have granted and expect to continue to grant to employees restricted stock grants and performance units that contain non-forfeitable rights to dividends. Such grants are considered participating securities under ASC 260. As such, we are required to include these grants in the calculation of our basic earnings per share and calculate basic earnings per share using the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings.

Basic earnings per share is computed utilizing the two-class method and is calculated based on the weighted-average number of common shares outstanding during the periods presented.

Diluted earnings per share is computed using the weighted-average number of common and common equivalent shares outstanding during the periods utilizing the two-class method for stock options, nonvested restricted stock and performance units.

Under the two-class method of calculating earnings per share, dividends paid and a portion of undistributed net income, but not losses, are allocated to unvested restricted stock grants and performance units that receive dividends, which are considered participating securities.

The following table sets forth the computation of basic and diluted earnings per share:


	Three Months Ended				Six Months Ended
	March 31,				March 31,
	2019		2018		2019		2018
	(in thousands, except per share amounts)
Numerator:
Income from continuing operations	$	71,857	$	(1,633)	$	80,221	$	499,009
Income (loss) from discontinued operations		(10,966)		(10,246)		(371)		(10,782)
Net income		60,891		(11,879)		79,850		488,227
Adjustment for basic earnings per share
Earnings allocated to unvested shareholders		(784)		(717)		(1,560)		(4,106)

Numerator for basic earnings per share:
From continuing operations		71,073		(2,350)		78,661		494,903
From discontinued operations		(10,966)		(10,246)		(371)		(10,782)
		60,107		(12,596)		78,290		484,121
Adjustment for diluted earnings per share:
Effect of reallocating undistributed earnings of unvested shareholders		—		—		—		11

Numerator for diluted earnings per share:
From continuing operations		71,073		(2,350)		78,661		494,914
From discontinued operations		(10,966)		(10,246)		(371)		(10,782)
	$	60,107	$	(12,596)	$	78,290	$	484,132
Denominator:
Denominator for basic earnings per share - weighted-average shares		109,406		108,868		109,273		108,775
Effect of dilutive shares from stock options, restricted stock and performance units		97		—		179		437
Denominator for diluted earnings per share - adjusted weighted-average shares		109,503		108,868		109,452		109,212

Basic earnings per common share:
Income from continuing operations	$	0.65	$	(0.03)	$	0.72	$	4.55
Income from discontinued operations		(0.10)		(0.09)		—		(0.10)
Net income	$	0.55	$	(0.12)	$	0.72	$	4.45

Diluted earnings per common share:
Income from continuing operations	$	0.65	$	(0.03)	$	0.72	$	4.53
Income from discontinued operations		(0.10)		(0.09)		—		(0.10)
Net income	$	0.55	$	(0.12)	$	0.72	$	4.43

The following average shares attributable to outstanding equity awards were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive:


	Three Months Ended				Six Months Ended
	March 31,				March 31,
	2019		2018		2019		2018
	(in thousands, except per share amounts)
Shares excluded from calculation of diluted earnings per share		2,921		1,613		2,770		1,676
Weighted-average price per share	$	64.04	$	68.69	$	64.18	$	68.12