Basic earnings per common share is computed by dividing net income attributable to Novanta Inc., after redeemable noncontrolling interest redemption value adjustment, by the weighted average number of common shares outstanding during the period. The Company recognized changes in the redeemable noncontrolling interest redemption value by adjusting the carrying amount of the redeemable noncontrolling interest as of the end of the applicable period to the higher of: (i) the estimated redemption value assuming the end of the period was also the redemption date or (ii) the carrying value without any redemption value adjustments. Such adjustments were 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 were 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, 2017 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 attainment-based contingently issuable shares granted to the former Laser Quantum noncontrolling interest shareholders, as well as 2018 and 2019 non-GAAP EPS performance-based restricted stock units will be included in the weighted average dilutive share calculation when the performance targets have been achieved. The dilutive effects of market-based contingently issuable shares are included in the weighted average dilutive share calculation based on the number of shares, if any, that would be issuable as of the end of the reporting period.

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
	March 29,		March 30,
	2019 ⁽¹⁾		2018 ⁽²⁾
Numerators:
Consolidated net income	$	12,253	$	12,837
Less: Net income attributable to noncontrolling interest		—		(926	)
Net income attributable to Novanta Inc.		12,253		11,911
Redeemable noncontrolling interest redemption value adjustment		—		(5,399	)
Net income attributable to Novanta Inc. after adjustment for redeemable noncontrolling interest redemption value	$	12,253	$	6,512

Denominators:
Weighted average common shares outstanding— basic		34,958		34,887
Dilutive potential common shares		516		541
Weighted average common shares outstanding— diluted		35,474		35,428
Antidilutive common shares excluded from above		58		12

Earnings per Common Share Attributable to Novanta Inc.:
Basic	$	0.35	$	0.19
Diluted	$	0.35	$	0.18

(1)

45,252 non-GAAP EPS performance restricted stock units granted to certain members of the executive management team and 213,219 shares of restricted stock issued to Laser Quantum former non-controlling interest holders are considered contingently issuable shares and are excluded from the calculation of the denominator as the contingent conditions had not been met as of March 29, 2019.

(2)

53,968 non-GAAP EPS performance restricted stock units granted to certain members of the executive management team were considered contingently issuable shares and were excluded from the calculation of the denominator as the contingent conditions had not been met as of March 30, 2018.