Net Income per Share

9 Months Ended

Oct. 31, 2018

NET INCOME PER SHARE

Basic net income per share is computed by dividing net income by the weighted average common shares and fully vested stock units outstanding. Diluted net income per share is computed by dividing net income by the weighted average common and common equivalent shares outstanding which includes the shares issuable upon exercise of employee stock options (net of shares assumed purchased with the option proceeds), stock units, and restricted stock units outstanding. Performance share awards are included in the diluted calculation based upon what would be issued if the end of the most recent reporting period was the end of the term of the award.

Certain outstanding options and restricted stock units were excluded from the diluted net income per-share calculations because their effect would have been anti-dilutive under the treasury stock method. The options and restricted stock units excluded from the diluted net income per-share share calculation were as follows:



	Three Months Ended		Nine Months Ended
	October 31, 2018	October 31, 2017	October 31, 2018	October 31, 2017
Anti-dilutive options and restricted stock units	—	338,244	50,699	385,157

The computation of earnings per share is presented below:



	Three Months Ended				Nine Months Ended
	October 31, 2018		October 31, 2017		October 31, 2018		October 31, 2017
Numerator:
Net income attributable to Raven Industries, Inc.	$	13,032	$	11,998	$	48,844	$	32,581

Denominator:
Weighted average common shares outstanding	35,952,688		35,829,880		35,890,638		36,002,024
Weighted average fully vested stock units outstanding	104,649		109,558		98,235		105,830
Denominator for basic calculation	36,057,337		35,939,438		35,988,873		36,107,854

Weighted average common shares outstanding	35,952,688		35,829,880		35,890,638		36,002,024
Weighted average fully vested stock units outstanding	104,649		109,558		98,235		105,830
Dilutive impact of stock options and restricted stock units	414,542		380,997		450,429		369,339
Denominator for diluted calculation	36,471,879		36,320,435		36,439,302		36,477,193

Net income per share ─ basic	$	0.36	$	0.33	$	1.36	$	0.90
Net income per share ─ diluted	$	0.36	$	0.33	$	1.34	$	0.89