Earnings per Common Share

The following table sets forth the computation of basic and diluted earnings per common share (in millions, except per share amounts):



	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Basic:
Numerator:
Income from continuing operations	$	81.3		$	61.8		$	158.1		$	121.1
Less: Net income attributable to noncontrolling interests included in continuing operations	(18.6		)	(17.3		)	(37.3		)	(33.8		)
Less: Income allocated to participating securities	(0.2		)	(0.3		)	(0.4		)	(0.6		)
Less: Convertible perpetual preferred stock dividends	—			—			—			(1.6		)
Income from continuing operations attributable to HealthSouth common shareholders	62.5			44.2			120.4			85.1
Loss from discontinued operations, net of tax, attributable to HealthSouth common shareholders	(0.1		)	(1.6		)	(0.2		)	(1.9		)
Net income attributable to HealthSouth common shareholders	$	62.4		$	42.6		$	120.2		$	83.2
Denominator:
Basic weighted average common shares outstanding	89.3			89.8			89.4			88.4
Basic earnings per share attributable to HealthSouth common shareholders:
Continuing operations	$	0.70		$	0.49		$	1.34		$	0.96
Discontinued operations	—			(0.02		)	—			(0.02		)
Net income	$	0.70		$	0.47		$	1.34		$	0.94

Diluted:
Numerator:
Income from continuing operations	$	81.3		$	61.8		$	158.1		$	121.1
Less: Net income attributable to noncontrolling interests included in continuing operations	(18.6		)	(17.3		)	(37.3		)	(33.8		)
Add: Interest on convertible debt, net of tax	2.4			2.3			4.8			4.6
Income from continuing operations attributable to HealthSouth common shareholders	65.1			46.8			125.6			91.9
Loss from discontinued operations, net of tax, attributable to HealthSouth common shareholders	(0.1		)	(1.6		)	(0.2		)	(1.9		)
Net income attributable to HealthSouth common shareholders	$	65.0		$	45.2		$	125.4		$	90.0
Denominator:
Diluted weighted average common shares outstanding	99.4			101.5			99.4			101.3
Diluted earnings per share attributable to HealthSouth common shareholders:
Continuing operations	$	0.65		$	0.47		$	1.26		$	0.91
Discontinued operations	—			(0.02		)	—			(0.02		)
Net income	$	0.65		$	0.45		$	1.26		$	0.89

The following table sets forth the reconciliation between basic weighted average common shares outstanding and diluted weighted average common shares outstanding (in millions):



	Three Months Ended June 30,		Six Months Ended June 30,
	2016	2015	2016	2015
Basic weighted average common shares outstanding	89.3	89.8	89.4	88.4
Convertible perpetual preferred stock	—	0.8	—	2.0
Convertible senior subordinated notes	8.5	8.2	8.5	8.2
Restricted stock awards, dilutive stock options, restricted stock units, and common stock warrants	1.6	2.7	1.5	2.7
Diluted weighted average common shares outstanding	99.4	101.5	99.4	101.3

In October 2015, February 2016, and May 2016, our board of directors declared cash dividends of $0.23 per share that were paid in January 2016, April 2016, and July 2016, respectively. On July 21, 2016, our board of directors approved an increase in our quarterly dividend and declared a cash dividend of $0.24 per share, payable on October 17, 2016 to stockholders of record on October 3, 2016. As of June 30, 2016 and December 31, 2015, accrued common stock dividends of $21.3 million were included in Accrued expenses and other current liabilities in our condensed consolidated balance sheets. Future dividend payments are subject to declaration by our board of directors.

On April 22, 2015, we delivered notice of the exercise of our rights to force conversion of all outstanding shares of our Convertible perpetual preferred stock (par value of $0.10 per share and liquidation preference of $1,000 per share) pursuant to the underlying certificate of designations. The effective date of the conversion was April 23, 2015. On that date, each share of preferred stock automatically converted into 33.9905 shares of our common stock (par value of $0.01 per share). We completed the forced conversion by issuing and delivering in the aggregate 3,271,415 shares of our common stock to the registered holders of the 96,245 shares of the preferred stock outstanding and paying cash in lieu of fractional shares due to those holders.

The indenture underlying our convertible notes includes antidilutive protection that requires adjustments to the number of shares of common stock issuable upon conversion and the exercise price for common stock upon the occurrence of certain events, including payment of cash dividends on our common stock after a de minimis threshold. At issuance, the convertible notes had a conversion price of $39.65 per share, which was equal to an initial conversion rate of 25.2194 shares per $1,000 principal amount of the convertible notes. The payment of dividends on our common stock has triggered and will continue to trigger, from time to time, the antidilutive adjustment provisions of the convertible notes. The current conversion price of the convertible notes is $37.59 per share, and the conversion rate is 26.6011 for each $1,000 principal amount of the convertible notes.

See Note 8, Long-term Debt, Note 10, Convertible Perpetual Preferred Stock, and Note 16, Earnings per Common Share, to the consolidated financial statements accompanying the 2015 Form 10-K for additional information related to our convertible notes, common stock, common stock warrants, and convertible perpetual preferred stock.