7. Net Income per Share

Basic earnings per share is based on the weighted average number of shares of common stock outstanding, and diluted earnings per share is based on the weighted average number of shares of common stock outstanding and all potentially dilutive common stock equivalents outstanding. Common stock equivalents are included in the per share calculations when the effect of their inclusion is dilutive.

The following is a reconciliation of basic to diluted net income per share:

	Quarter Ended				Year to Date Ended
	September 30, 2018		September 30, 2017		September 30, 2018		September 30, 2017
Net income	$	12,313	$	13,277	$	40,321	$	38,987
Shares used in net income per common share - basic		29,010		29,008		29,101		28,912
Incremental shares of unvested restricted common stock		39		66		77		89
Shares used in net income per common share - diluted		29,049		29,074		29,178		29,001
Earnings per share:
Basic net income	$	0.42	$	0.46	$	1.39	$	1.35
Diluted net income	$	0.42	$	0.46	$	1.38	$	1.34

On October 1, 2018, upon consummation of the Fortive Transaction, the Company issued 35.0 million shares of Altra common stock pursuant to the Merger Agreement and the Distribution Agreement. As a result, the total amount of common stock issued and outstanding is approximately 64.4 million.