37  /  CP 2018 ANNUAL REPORT Diluted Earnings per Share *Adjusted diluted EPS is defined and reconciled in Non-GAAP Measures of this Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. Diluted EPS was $13.61 in 2018, a decrease of $2.83, or 17%, from $16.44 in 2017. This decrease was primarily due to lower Net income, partially offset by the lower average number of outstanding Common Shares due to the Company's share repurchase program. Diluted EPS was $16.44 in 2017, an increase of $5.81, or 55%, from $10.63 in 2016. This increase was primarily due to higher Net income and the lower average number of outstanding Common Shares due to the Company's share repurchase program. Adjusted diluted EPS, defined and reconciled in Non-GAAP Measures of this Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, was $14.51 in 2018, an increase of $3.12, or 27%, from $11.39 in 2017. Adjusted diluted EPS was $11.39 in 2017, an increase of $1.10, or 11%, from $10.29 in 2016. These increases were primarily due to higher Adjusted income and the lower average number of outstanding Common Shares due to the Company's share repurchase program. Operating Ratio * Comparative years' figures have been restated for the retrospective adoption of ASU 2017-07, and the impact on the 2017 and 2016 comparatives are discussed further in Item 8. Financial Statements and Supplementary Data, Note 2 Accounting changes. The restatements of 2015 and 2014 comparatives resulted in a decrease in Operating income of $70 million and $137 million for the years ended December 31, 2015 and 2014, respectively. ** Adjusted operating ratio is defined and reconciled in Non-GAAP Measures of this Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.