American Home Shield 2015 Annual Report Download - page 107

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Table of Contents
89
Note 19. Earnings Per Share
Basic earnings per share is computed by dividing net income by the weighted-average number of shares of common stock
outstanding. Diluted earnings per share is computed by dividing net income by the weighted-average number of shares of common
stock outstanding during the period, increased to include the number of shares of common stock that would have been outstanding had
potential dilutive shares of common stock been issued. The dilutive effect of stock options and RSUs are reflected in diluted net
income per share by applying the treasury stock method.
A reconciliation of the amounts included in the computation of basic earnings per share from continuing operations and
diluted earnings per share from continuing operations is as follows:
Year Ended December 31,
(In millions, except per share data) 2015 2014 2013
Income from continuing operations $ 162 $ 43 $ 42
Wei
g
hte
d
-avera
g
e common shares outstandin
g
135.0 112.8 91.6
Effect of dilutive securities:
RSUs 0.2 0.1 0.1
Stock options(1) 1.4 0.8 0.5
Weighted-average common shares outstanding - assuming dilution 136.6 113.8 92.2
Basic earnin
g
s
p
er share from continuin
g
o
p
erations $1.20 $ 0.38 $0.46
Diluted earnin
g
s
p
er share from continuin
g
o
p
erations $ 1.19 $ 0.38 $ 0.46
___________________________________
(1) Options to purchase 0.3 million, 0.1 million, and 1.4 million shares for the years ended December 31, 2015, 2014 and 2013,
respectively, were not included in the diluted earnings per share calculation because either their exercise price or proceeds per
share exceeded the average market price of the Company’s common stock for each respective reporting date.
On June 25, 2014, the Company’s registration statement on Form S-1 was declared effective by the SEC for an initial public
offering of its common stock, and, on July 1, 2014, the Company completed the offering of 41,285,000 shares of its common stock.
See Note 1 to the consolidated financial statements for further details.
2015 Annual Report 105