Earnings per Share

The basic and diluted earnings per share (“EPS”), and the basic and diluted weighted average shares outstanding for all periods as presented in the accompanying Consolidated Statements of Income are shown below:



	For the year ended December 31,
	(In thousands, except per share amounts)
Earnings per share:	2017		2016		2015
Basic earnings per common share	$	3.19	$	2.88	$	2.29
Diluted earnings per common share	$	3.17	$	2.86	$	2.28
Basic weighted average shares outstanding	31,552		32,603		34,668
Diluted weighted average shares outstanding	31,719		32,863		34,901

Basic EPS is equal to net income attributable to Ebix, Inc divided by the weighted average number of shares of common stock outstanding for the period. Diluted EPS takes into consideration common stock equivalents which for the Company consist of stock options and restricted stock. With respect to stock options, diluted EPS is calculated as if the Company had additional common stock outstanding from the beginning of the year or the date of grant or issuance, net of assumed repurchased shares using the treasury stock method. Diluted EPS is equal to net income attributable to Ebix, Inc divided by the combined sum of the weighted average number of shares outstanding and common stock equivalents. At December 31, 2017, 2016, and 2015 there were no potentially issuable shares with respect to stock options which could dilute EPS in the future but which were excluded from the diluted EPS calculation because presently their effect is anti-dilutive. Diluted shares outstanding are determined as follows for each year ending December 31, 2017, 2016, and 2015:



	For the year ended December 31,
	(in thousands)
	2017	2016	2015
Basic weighted average shares outstanding	31,552	32,603	34,668
Incremental shares for common stock equivalents	167	260	233
Diluted shares outstanding	31,719	32,863	34,901