Earnings per Share (Notes)

6 Months Ended

Mar. 31, 2017

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 March 31,						Six Months Ended March 31,
(in millions, except share amounts)	2017			2016			2017			2016
Numerator:
Net income	$	11.0		$	14.5		$	17.3		$	23.3
Less: Allocation to participating securities	(0.2		)	(0.3		)	(0.3		)	(0.4		)
Net income allocated to common stockholders	$	10.8		$	14.2		$	17.0		$	22.9
Denominator:
Weighted average number of:
Common shares outstanding	18,404,236			18,592,643			18,325,383			18,621,337
Dilutive potential common shares outstanding:
Share-based awards	257,182			162,807			312,097			200,485
Diluted weighted-average shares	18,661,418			18,755,450			18,637,480			18,821,822

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 322,974 and 986,339 shares of common stock for the three months ended March 31, 2017 and 2016, respectively, and options to purchase 242,448 and 900,665 shares of common stock for the six months ended March 31, 2017 and 2016, respectively, were excluded from the calculation of diluted earnings per share as they would have been anti-dilutive.