5. Earnings per Share

Basic earnings per common share is computed by dividing net income by the weighted average number of common shares outstanding during the period. For diluted earnings per common share, the denominator also includes the dilutive effect of outstanding restricted stock units determined using the treasury stock method. For periods in which net losses are generated, the dilutive potential common shares are excluded from the calculation of diluted earnings per share as the effect would be anti-dilutive. Dilutive effects of contingently issuable shares are included in the weighted average dilutive share calculation when the contingencies have been resolved.

The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts):

	Three Months Ended						Nine Months Ended
	September 26,			September 27,			September 26,			September 27,
	2014			2013			2014			2013
Numerators:
Income from continuing operations	$	5,119		$	2,244		$	11,381		$	5,278
Consolidated loss from discontinued operations		(594	)		(466	)		(5,138	)		(2,235	)
Less: income (loss) attributable to noncontrolling interest		—			12			(10	)		(42	)
Loss from discontinued operations attributable to GSI Group Inc.		(594	)		(454	)		(5,148	)		(2,277	)
Net income attributable to GSI Group Inc.	$	4,525		$	1,790		$	6,233		$	3,001

Denominators:
Weighted average common shares outstanding— basic		34,389			34,102			34,333			34,058
Dilutive potential common shares		404			315			392			267
Weighted average common shares outstanding— diluted		34,793			34,417			34,725			34,325
Antidilutive common shares excluded from above		—			37			29			327

Basic Earnings (Loss) per Common Share:
From continuing operations	$	0.15		$	0.07		$	0.33		$	0.15
From discontinued operations	$	(0.02	)	$	(0.02	)	$	(0.15	)	$	(0.07	)
Basic earnings per share attributable to GSI Group Inc.	$	0.13		$	0.05		$	0.18		$	0.08

Diluted Earnings (Loss) per Common Share:
From continuing operations	$	0.15		$	0.07		$	0.33		$	0.15
From discontinued operations	$	(0.02	)	$	(0.02	)	$	(0.15	)	$	(0.07	)
Diluted earnings per share attributable to GSI Group Inc.	$	0.13		$	0.05		$	0.18		$	0.08

Common Stock Repurchases

In October 2013, the Company’s Board of Directors authorized a share repurchase plan under which the Company may repurchase outstanding shares of the Company’s common stock up to an aggregate amount of $10.0 million. The shares may be repurchased from time to time, at the Company’s discretion, based on ongoing assessment of the capital needs of the business, the market price of the Company’s common stock, and general market conditions. Shares may also be repurchased through an accelerated stock purchase agreement, on the open market or in privately negotiated transactions in accordance with applicable federal securities laws. Repurchases may be made under certain SEC regulations, which would permit common stock to be purchased when the Company would otherwise be prohibited from doing so under insider trading laws. The share repurchase plan does not obligate the Company to acquire any particular amount of common stock. No time limit was set for the completion of the share repurchase program, and the program may be suspended or discontinued at any time. As of December 31, 2013, the Company cumulatively repurchased 50 thousand shares of its common stock in the open market for a weighted average share price of $10.49 per share. There were no share repurchases during the nine months ended September 26, 2014.