Net Income per Common Share

6 Months Ended

Jun. 30, 2021

Net income per common share - basic was calculated based upon the weighted average number of common shares outstanding during the respective periods presented using the two-class method of computing earnings per share. The two-class method was used as the Company has outstanding restricted stock with rights to dividend participation for unvested shares. Undistributed net income is allocated between common shares outstanding and participating securities to the extent that each security may share in earnings as if all of the earnings for the period had been distributed. Undistributed net losses are not allocated to our participating securities as these participating securities do not have a contractual obligation to share in losses. Net income per common share - diluted was calculated based upon the weighted average number of common shares outstanding and included the equivalent shares for dilutive options outstanding during the respective periods, including unvested options. The dilutive effect of outstanding options and restricted stock issued by the Company is reflected in net income per share - diluted using the treasury stock method. Under the treasury stock method, options will only have a dilutive effect when the average market price of common stock during the period exceeds the exercise price of the options.

The following table presents the computation of basic and diluted net income per share under the two-class method for the three and six months ended June 30, 2021 and 2020 (in millions, except for per share amounts):


	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Net income from continuing operations	$	21.1	$	15.3	$	26.6	$	23.6
Less: Distributed net income available to participating securities	0.0		0.0		0.0		(0.3)
Less: Undistributed net income available to participating securities	(0.1)		(0.1)		(0.1)		0.0
Numerator for basic net income per share:
Undistributed and distributed net income available to common shareholders	$	21.0	$	15.2	$	26.5	$	23.3
Add: Undistributed net income allocated to participating securities	0.1		0.1		0.1		0.0
Less: Undistributed net income reallocated to participating securities	(0.1)		(0.1)		(0.1)		0.0

Numerator for diluted net income per share:
Undistributed and distributed net income available to common shareholders	$	21.0	$	15.2	$	26.5	$	23.3
Denominator:
Weighted average shares outstanding for basic net income per share	37.7		37.5		37.7		37.6
Effect of dilutive securities	0.2		0.1		0.2		0.2
Weighted average shares outstanding for diluted net income per share	37.9		37.6		37.9		37.8

Net income per share from continuing operations:
Basic	$	0.56	$	0.41	$	0.70	$	0.62
Diluted	$	0.55	$	0.40	$	0.70	$	0.62

Net income from discontinued operations	$	0.9	$	1.1	$	10.6	$	1.0

Less: Undistributed net income available to participating securities	0.0		0.0		(0.1)		0.0
Numerator for basic net income per share:


Undistributed and distributed net income available to common shareholders	$	0.9	$	1.1	$	10.5	$	1.0

Add: Undistributed net income allocated to participating securities	0.0		0.0		0.1		0.0
Less: Undistributed net income reallocated to participating securities	0.0		0.0		(0.1)		0.0

Numerator for diluted net income per share:
Undistributed and distributed net income available to common shareholders	$	0.9	$	1.1	$	10.5	$	1.0

Net income per share from discontinued operations:
Basic	$	0.02	$	0.03	$	0.28	$	0.03
Diluted	$	0.02	$	0.03	$	0.28	$	0.03

Net income per share:
Basic	$	0.58	$	0.44	$	0.98	$	0.65
Diluted	$	0.57	$	0.43	$	0.98	$	0.65

Potentially dilutive securities	0.1		0.6		0.1		0.6

Potentially dilutive securities attributable to outstanding stock options, restricted stock units, and performance share units excluded from the calculation of diluted earnings per share where the combined exercise price and average unamortized fair value are greater than the average market price of Global Industrial Company's common stock, and their inclusion would be anti-dilutive.