Common and Common Equivalent Shares

3 Months Ended

Mar. 31, 2017

7. Common and Common Equivalent Shares:

Basic net income per common share is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per common share is calculated by dividing net income by the weighted average number of common and potential common shares outstanding during the period. Potential common shares consist of outstanding restricted stock and stock options and is calculated using the treasury stock method. In the first quarter of 2017, the Company adopted new accounting guidance that no longer allows the Company to include the assumed excess tax benefits related to the potential exercise or vesting of its stock-based awards in the treasury stock method computation. The impact on the weighted average number of common and common equivalent shares outstanding from excluding such assumed excess tax benefits for the three months ended March 31, 2017 was not material. See Note 1 for additional information on the adoption of the new accounting guidance.

The calculation of shares used in the basic and diluted net income per common share calculation for the three months ended March 31, 2017 and 2016 is as follows (in thousands):


	Three Months Ended March 31,
	2017		2016
Weighted average number of common shares outstanding		92,360		92,269
Weighted average number of dilutive common share equivalents		783		822

Weighted average number of common and common equivalent shares outstanding		93,143		93,091

Antidilutive securities not included in the diluted net income per common share calculation		3		6