5. Earnings per Common Share

Earnings per common share is computed by dividing net income attributable to Novanta Inc., after adjustment of redeemable noncontrolling interest to estimated redemption value, by the weighted average number of common shares outstanding during the period. The Company recognizes changes in the redeemable noncontrolling interest redemption value by adjusting the carrying amount of the redeemable noncontrolling interest as of the end of the period to the higher of: (i) the estimated redemption value assuming the end of the period is also the redemption date or (ii) the carrying value without any redemption value adjustments. Such adjustments are recorded in retained earnings in stockholders’ equity instead of net income attributable to Novanta Inc. For both basic and diluted earnings per common share, such redemption value adjustments are included in the calculation of the numerator. For diluted earnings per common share, the denominator also includes the dilutive effect of outstanding restricted stock units, stock options, non-GAAP EPS performance-based restricted stock units and total shareholder return performance-based restricted stock units determined using the treasury stock method. Dilutive effects of contingently issuable shares are included in the weighted average dilutive share calculation using the treasury stock method when the contingencies have been resolved. For periods in which net losses are generated, the dilutive potential common shares are excluded from the calculation of diluted earnings per common share as the effect would be anti-dilutive.

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

	Three Months Ended						Six Months Ended
	June 29,			June 30,			June 29,			June 30,
	2018			2017			2018			2017
Numerators:
Consolidated net income	$	11,625		$	9,990		$	24,462		$	44,264
Less: Net income attributable to noncontrolling interest		(625	)		(588	)		(1,551	)		(610	)
Net income attributable to Novanta Inc.		11,000			9,402			22,911			43,654
Decrease (increase) in estimated redemption value of redeemable noncontrolling interest (see Note 15)		303			(3,718	)		(5,096	)		(3,718	)
Net income attributable to Novanta Inc. after adjustment of redeemable noncontrolling interest to estimated redemption value	$	11,303		$	5,684		$	17,815		$	39,936

Denominators:
Weighted average common shares outstanding— basic		34,949			34,827			34,919			34,796
Dilutive potential common shares		525			636			532			498
Weighted average common shares outstanding— diluted		35,474			35,463			35,451			35,294
Antidilutive common shares excluded from above		—			—			6			—

Earnings per Common Share Attributable to Novanta Inc.:
Basic	$	0.32		$	0.16		$	0.51		$	1.15
Diluted	$	0.32		$	0.16		$	0.50		$	1.13

Common Share Repurchases

During the six months ended June 29, 2018, the Company repurchased 30 thousand of its common shares in the open market for an aggregate purchase price of $1.9 million at an average price of $63.88 per share.