Earnings Per Share

The Company presents both basic and diluted earnings per share ("EPS") amounts. Basic EPS is calculated by dividing net income attributable to Johnson Controls by the weighted average number of ordinary shares outstanding during the reporting period. Diluted EPS is calculated by dividing net income attributable to Johnson Controls by the weighted average number of ordinary shares and ordinary equivalent shares outstanding during the reporting period that are calculated using the treasury stock method for stock options, unvested restricted stock and unvested performance share awards. The treasury stock method assumes that the Company uses the proceeds from the exercise of stock option awards to repurchase ordinary shares at the average market price during the period. The assumed proceeds under the treasury stock method include the purchase price that the grantee will pay in the future and compensation cost for future service that the Company has not yet recognized. For unvested restricted stock and unvested performance share awards, assumed proceeds under the treasury stock method would include unamortized compensation cost.

The following table reconciles the numerators and denominators used to calculate basic and diluted earnings per share (in millions):



	Three Months Ended December 31,
	2018		2017
Income Available to Ordinary Shareholders
Income (loss) from continuing operations	$	107	$	(75	)
Income from discontinued operations	248		305
Basic and diluted income available to shareholders	$	355	$	230

Weighted Average Shares Outstanding
Basic weighted average shares outstanding	921.6		926.1
Effect of dilutive securities:
Stock options, unvested restricted stock and unvested performance share awards	3.6		—
Diluted weighted average shares outstanding	925.2		926.1

Antidilutive Securities
Options to purchase shares	2.7		—

For the three months ended December 31, 2017, the total weighted average of potential dilutive shares due to stock options, unvested restricted stock and unvested performance share awards was 7.2 million. However, these items were not included in the computation of diluted EPS for the three months ended December 31, 2017, since to do so would decrease the loss per share for continuing operations.

During the three months ended December 31, 2018 and 2017, the Company declared dividends of $0.26 per share. The Company paid all dividends in the month subsequent to the end of each fiscal quarter.