Earnings per Common Share

6 Months Ended

Jun. 30, 2023

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,
	2023		2022		2023		2022
Basic:
Numerator:
Income from continuing operations	$	118.4	$	59.8	$	232.7	$	146.2
Less: Net income attributable to noncontrolling interests included in continuing operations	(25.8)		(21.9)		(51.4)		(43.9)
Less: Income from continuing operations allocated to participating securities	(0.6)		(0.1)		(1.2)		(0.3)

Income from continuing operations attributable to Encompass Health common shareholders	92.0		37.8		180.1		102.0
(Loss) income from discontinued operations, net of tax	(1.2)		11.5		(2.2)		35.2
Less: Net income attributable to noncontrolling interests included in discontinued operations	—		(0.7)		—		(1.3)
Less: Income from discontinued operations allocated to participating securities	—		(0.1)		—		(0.2)
(Loss) income from discontinued operations attributable to Encompass Health common shareholders	(1.2)		10.7		(2.2)		33.7
Net income attributable to Encompass Health common shareholders	$	90.8	$	48.5	$	177.9	$	135.7
Denominator:
Basic weighted average common shares outstanding	99.5		99.2		99.5		99.2
Basic earnings per share attributable to Encompass Health common shareholders:
Continuing operations	$	0.92	$	0.38	$	1.81	$	1.03
Discontinued operations	(0.01)		0.11		(0.02)		0.34
Net income	$	0.91	$	0.49	$	1.79	$	1.37

Diluted:
Numerator:
Income from continuing operations	$	118.4	$	59.8	$	232.7	$	146.2
Less: Net income attributable to noncontrolling interests included in continuing operations	(25.8)		(21.9)		(51.4)		(43.9)


Income from continuing operations attributable to Encompass Health common shareholders	92.6		37.9		181.3		102.3
(Loss) income from discontinued operations, net of tax	(1.2)		11.5		(2.2)		35.2
Less: Net income attributable to noncontrolling interests included in discontinued operations	—		(0.7)		—		(1.3)
(Loss) income from discontinued operations attributable to Encompass Health common shareholders	(1.2)		10.8		(2.2)		33.9
Net income attributable to Encompass Health common shareholders	$	91.4	$	48.7	$	179.1	$	136.2
Denominator:
Diluted weighted average common shares outstanding	101.1		100.3		101.0		100.2
Diluted earnings per share attributable to Encompass Health common shareholders:
Continuing operations	$	0.91	$	0.38	$	1.79	$	1.02
Discontinued operations	(0.01)		0.11		(0.02)		0.34
Net income	$	0.90	$	0.49	$	1.77	$	1.36

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,
	2023	2022	2023	2022
Basic weighted average common shares outstanding	99.5	99.2	99.5	99.2


Restricted stock awards, dilutive stock options, and restricted stock units	1.6	1.1	1.5	1.0
Diluted weighted average common shares outstanding	101.1	100.3	101.0	100.2

See Note 17, Earnings per Common Share, to the consolidated financial statements accompanying the 2022 Form 10‑K for additional information related to our common stock.