Earnings per Share (Notes)

9 Months Ended

Jun. 30, 2016

Earnings per Share

The Company presents basic and diluted earnings per share (“EPS”) using the two-class method which requires all outstanding unvested share-based payment awards that contain rights to non-forfeitable dividends and therefore participate in undistributed earnings with common stockholders be included in computing earnings per share. Under the two-class method, net earnings are reduced by the amount of dividends declared in the period for each class of common stock and participating security. The remaining undistributed earnings are then allocated to common stock and participating securities, based on their respective rights to receive dividends. Restricted stock awards granted to certain employees and directors contain non-forfeitable rights to dividends at the same rate as common stock, and are considered participating securities. Basic EPS has been computed by dividing net income by the weighted-average number of common shares outstanding.

The following is a reconciliation of the numerator and denominator of the diluted net income per share computations for the periods presented below.



	Three Months Ended June 30,						Nine Months Ended June 30,
(in millions, except share amounts)	2016			2015			2016			2015
Numerator:
Net income	$	14.6		$	12.2		$	37.9		$	34.6
Less: Allocation to participating securities	(0.3		)	(0.3		)	(0.6		)	(0.8		)
Net income allocated to common stockholders	$	14.3		$	11.9		$	37.3		$	33.8
Diluted net income	$	14.6		$	12.2		$	37.9		$	34.6
Less: Allocation to participating securities	(0.3		)	(0.3		)	(0.6		)	(0.8		)
Diluted net income allocated to common stockholders	$	14.3		$	11.9		$	37.3		$	33.8
Denominator:
Weighted average number of:
Common shares outstanding	18,138,754			18,698,734			18,461,063			18,573,617
Dilutive potential common shares outstanding:
Share-based awards	183,697			386,013			194,609			379,554
Diluted weighted-average shares	18,322,451			19,084,747			18,655,672			18,953,171

The dilutive effect of share-based awards is reflected in diluted net income per share by application of the treasury stock method, which includes consideration of unamortized share-based compensation expense required under the Compensation – Stock Compensation Topic of the ASC.

Options to purchase 1,009,055 and 910,792 shares of common stock for the three months ended June 30, 2016 and 2015, respectively, and options to purchase 933,678 and 1,078,792 shares of common stock for the nine months ended June 30, 2016 and 2015, respectively, were excluded from the calculation of diluted earnings per share as they would have been anti-dilutive.