Earnings Per Common Share

3 Months Ended

Mar. 31, 2017

3. EARNINGS PER COMMON SHARE

Basic earnings per share (“EPS”) is computed by dividing income available to MSCI common shareholders by the weighted average number of common shares outstanding during the period. Common shares outstanding include common stock and vested restricted stock unit awards where recipients have satisfied either the explicit vesting terms or retirement-eligible requirements. Diluted EPS reflects the assumed conversion of all dilutive securities. There were 3,002 anti-dilutive securities excluded from the calculation of diluted EPS for the three months ended March 31, 2017. There were no anti-dilutive securities excluded from the calculation of diluted EPS for the three months ended March 31, 2016.

The following table presents the computation of basic and diluted EPS:

	Three Months Ended
	March 31,
	2017		2016
(in thousands, except per share data)
Net income	$	72,951	$	60,367

Basic weighted average common shares outstanding		90,708		99,425
Effect of dilutive securities:
Stock options and restricted stock units		916		573
Diluted weighted average common shares outstanding		91,624		99,998

Earnings per basic common share	$	0.80	$	0.61

Earnings per diluted common share	$	0.80	$	0.60