| Income Per Share |
13. INCOME PER SHARE
Basic net income per share is calculated by dividing net income by the weighted average shares outstanding during the period, without consideration for common stock equivalents.
Diluted net income per share is calculated by adjusting weighted average shares outstanding for the dilutive effect of common stock equivalents outstanding for the period, determined using the treasury stock method.
Basic and diluted income per share were computed as follows, in thousands, except share and per share amounts:
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Years Ended December 31,
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2017
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2016
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2015
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Income from continuing operations
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$
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158,133
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$
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72,606
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$
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79,123
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Loss from discontinued operations, net
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—
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—
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(152)
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Net income - basic and diluted
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$
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158,133
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$
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72,606
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$
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78,971
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Weighted average number of common shares outstanding - basic
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35,897,641
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37,585,777
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37,674,913
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Dilutive effect of common stock equivalents:
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RSAs with service-based conditions
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221,497
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192,705
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93,688
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RSAs with market-based conditions
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185,069
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28,307
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—
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RSAs with performance-based conditions
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—
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—
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—
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Stock options
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267,939
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60,423
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12,274
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Weighted average number of common shares outstanding - diluted
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36,572,146
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37,867,212
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37,780,875
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Basic income per common share:
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Income from continuing operations
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$
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4.41
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$
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1.93
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$
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2.10
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Loss from discontinued operations, net
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—
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—
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—
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Net income
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$
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4.41
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$
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1.93
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$
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2.10
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Diluted income per common share:
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Income from continuing operations
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$
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4.32
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$
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1.92
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$
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2.09
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Loss from discontinued operations, net
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—
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—
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—
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Net income
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$
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4.32
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$
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1.92
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$
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2.09
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The following table summarizes shares excluded from the calculation of diluted income per share because their effect would have been anti-dilutive:
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Years Ended December 31,
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2017
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2016
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2015
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Anti-dilutive common stock equivalents:
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RSAs with service-based conditions
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458
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35,182
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17,366
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RSAs with market-based conditions
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—
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6,323
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—
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RSAs with performance-based conditions
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—
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—
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—
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Stock options
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45,308
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432,287
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127,872
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Total anti-dilutive common stock equivalents
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45,766
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473,792
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145,238
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On June 30, 2015, we distributed 37.7 million shares of our common stock to Masco shareholders in conjunction with the Separation.
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