Net Income Attributable To IPG Photonics Corporation Per Share

3 Months Ended

Mar. 31, 2017

Net Income Attributable To IPG Photonics Corporation Per Share

NET INCOME ATTRIBUTABLE TO IPG PHOTONICS CORPORATION PER SHARE

The following table sets forth the computation of diluted net income attributable to IPG Photonics Corporation per share:



	Three Months Ended March 31,
	2017		2016
Net income attributable to IPG Photonics Corporation	$	74,945	$	49,326
Weighted average shares	53,368		52,898
Dilutive effect of common stock equivalents	1,002		723
Diluted weighted average common shares	54,370		53,621
Basic net income attributable to IPG Photonics Corporation per share	$	1.40	$	0.93
Diluted net income attributable to IPG Photonics Corporation per share	$	1.38	$	0.92

For the three months ended March 31, 2017 and 2016, respectively, the computation of diluted weighted average common shares excludes common stock equivalents of 73,300 shares and 65,100 shares which includes restricted stock units ("RSUs") of 44,400 and 49,600 and performance stock units ("PSUs") of 17,100 and 15,000, respectively. These common stock equivalents are excluded because the effect of including them would be anti-dilutive.

On July 28, 2016, the Company announced that its Board of Directors authorized a share repurchase program (the “Program”) to mitigate the dilutive impact of shares issued upon exercise or release under the Company's various employee and director equity compensation and employee stock purchase plans. Under the Program, the Company's management is authorized to repurchase shares of common stock in an amount not to exceed the number of shares issued to employees and directors under its various employee and director equity compensation and employee stock purchase plans from January 1, 2016 through December 31, 2017. The Program limits aggregate share repurchases to no more than $100,000 over a period ending June 30, 2018.

For the three months ended March 31, 2017, the Company repurchased 107,700 shares of its common stock with an average price of $116.42 per share in the open market. The impact on the reduction of weighted average shares for the three months ended March 31, 2017 was 31,140 shares. As the Program was announced in July 2016, there were repurchases made by the Company for the three months ended March 31, 2016.