Net Income per Common Share Attributable to Magellan Health, Inc. (Tables)

9 Months Ended

Sep. 30, 2017

Net Income per Common Share Attributable to Magellan Health, Inc.

Computation of basic and diluted earnings per share

The following table reconciles income attributable to common shareholders (numerator) and shares (denominator) used in the computations of net income per share attributable to common shareholders (in thousands, except per share data):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2016		2017		2016		2017
Numerator:
Net income attributable to Magellan	$	25,509	$	32,451	$	42,704	$	55,698
Denominator:
Weighted average number of common shares outstanding—basic		23,052		23,282		23,394		23,135
Common stock equivalents—stock options (1)		226		572		287		485
Common stock equivalents—RSAs  (1)		696		483		647		461
Common stock equivalents—RSUs  (1)		29		61		28		46
Common stock equivalents—PSUs  (1)		2		162		23		111
Common stock equivalents—employee stock purchase plan		4		3		3		3
Weighted average number of common shares outstanding—diluted (1)		24,009		24,563		24,382		24,241
Net income attributable to Magellan per common share—basic	$	1.11	$	1.39	$	1.83	$	2.41
Net income attributable to Magellan per common share—diluted	$	1.06	$	1.32	$	1.75	$	2.30

(1) During 2016, the Company early adopted ASU 2016-09. As a result, the common stock equivalents and diluted weighted average common shares outstanding as of September 30, 2016 have been adjusted. There was no impact to net income per common share – diluted.