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

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) for the three months ended March 31:


	2017		2018
Numerator:
Net income attributable to Magellan	$	17,747	$	11,452
Denominator:
Weighted average number of common shares outstanding—basic		23,012		24,349
Common stock equivalents—stock options		474		806
Common stock equivalents—RSAs		402		24
Common stock equivalents—RSUs		81		77
Common stock equivalents—PSUs		66		353
Common stock equivalents—employee stock purchase plan		3		3
Weighted average number of common shares outstanding—diluted		24,038		25,612
Net income attributable to Magellan per common share—basic	$	0.77	$	0.47
Net income attributable to Magellan per common share—diluted	$	0.74	$	0.45

The weighted average number of common shares outstanding for the three months ended March 31, 2017 and 2018 were calculated using outstanding shares of the Company’s common stock. Common stock equivalents included in the calculation of diluted weighted average common shares outstanding for the three months ended March 31, 2017 and 2018 represent stock options to purchase shares of the Company’s common stock, RSAs, RSUs, PSUs and stock purchased under the Employee Stock Purchase Plan.

The Company had additional potential dilutive securities outstanding representing 0.6 million and 0.2 million options for the three months ended March 31, 2017 and 2018, respectively, that were not included in the computation of dilutive securities because they were anti-dilutive for the period. Had these shares not been anti-dilutive, all of these shares would not have been included in the net income attributable to common shareholder per common share calculation as the Company uses the treasury stock method of calculating diluted shares.