NOTE 5—NET INCOME PER COMMON SHARE

Basic earnings per share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that would share in the net income of the Company. For the three and six months ended June 30, 2017, the effect of 34,374 stock appreciation rights (“SARs”) have not been considered in the diluted earnings per share, because the market price of the stock was less than the exercise price during the period in the computation, respectively. In addition, 1.2 million and 2.5 million restricted shares have not been considered in the diluted earnings per share calculation for the three and six months ended June 30, 2017, respectively, as the effect would be anti-dilutive.

The following tables set forth the computation of basic and diluted earnings per share:


	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Basic:
Net income (loss) attributable to ISG	$	2,362	$	(302)	$	2,526	$	(908)
Weighted average common shares		44,655		43,058		44,180		42,687
Earnings (loss) per share attributable to ISG	$	0.05	$	(0.01)	$	0.06	$	(0.02)
Diluted:
Net income (loss) attributable to ISG	$	2,362	$	(302)	$	2,526	$	(908)
Interest expense of convertible debt, net of tax		—		—		—		—
Net income (loss) attributable to ISG, as adjusted	$	2,362	$	(302)	$	2,526	$	(908)
Basic weighted average common shares		44,655		43,058		44,180		42,687
Potential common shares		1,431		—		1,793		—
Diluted weighted average common shares		46,086		43,058		45,973		42,687
Diluted earnings (loss) per share attributable to ISG	$	0.05	$	(0.01)	$	0.05	$	(0.02)