Earnings per Common Share (Tables)

12 Months Ended

Dec. 31, 2019

Computation of Basic and Diluted Earnings per Common Share

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

	Year Ended December 31,
	2019⁽¹⁾		2018⁽²⁾			2017⁽³⁾
Numerators:
Consolidated net income	$	40,773	$	51,095		$	62,307
Less: Net income attributable to noncontrolling interest		—		(1,986	)		(2,256	)
Net income attributable to Novanta Inc.		40,773		49,109			60,051
Redeemable noncontrolling interest redemption value adjustment		—		1,781			(20,244	)
Net income attributable to Novanta Inc. after adjustment for redeemable noncontrolling interest redemption value	$	40,773	$	50,890		$	39,807

Denominators:
Weighted average common shares outstanding— basic		35,030		34,913			34,817
Dilutive potential common shares		516		560			463
Weighted average common shares outstanding— diluted		35,546		35,473			35,280
Antidilutive potential common shares excluded from above		41		4			—

Earnings per Common Share Attributable to Novanta Inc.:
Basic	$	1.16	$	1.46		$	1.14
Diluted	$	1.15	$	1.43		$	1.13

(1)

For the year ended December 31, 2019, 46 non-GAAP EPS performance-based restricted stock units granted to certain members of the executive management team and 213 shares of restricted stock issued to Laser Quantum former non-controlling interest shareholders are considered contingently issuable shares and were excluded from the calculation of the denominator as the contingent conditions had not been met as of December 31, 2019.

(2)

For the year ended December 31, 2018, 54 non-GAAP EPS performance-based restricted stock units granted to certain members of the executive management team and 213 shares of restricted stock issued to Laser Quantum former non-controlling interest shareholders were considered contingently issuable shares and were excluded from the calculation of the denominator as the contingent conditions had not been met as of December 31, 2018.

(3)	For the year ended December 31, 2017, 59 non-GAAP EPS performance-based restricted stock units granted to certain members of the executive management team were excluded from the calculation of the denominator as the contingent conditions had not been met as of December 31, 2017.