EARNINGS PER COMMON SHARE

12 Months Ended

Oct. 30, 2016

Basic earnings per common share is computed by dividing net income allocated to common shares by the weighted average number of common shares outstanding. Diluted income per common share, if applicable, considers the dilutive effect of common stock equivalents. The reconciliation of the numerator and denominator used for the computation of basic and diluted income per common share is as follows (in thousands, except per share data):



	Fiscal Year Ended
	October 30, 2016		November 1, 2015		November 2, 2014
Numerator for Basic and Diluted Earnings Per Common Share:
Net income applicable to common shares	$	50,638	$	17,646	$	11,085
Denominator for Basic and Diluted Earnings Per Common Share:
Weighted average basic number of common shares outstanding	72,411		73,271		73,079
Common stock equivalents:
Employee stock options	446		652		729
PSUs and Performance Share Awards	—		—		901
Weighted average diluted number of common shares outstanding	72,857		73,923		74,709
Basic earnings per common share	$	0.70	$	0.24	$	0.15
Diluted earnings per common share	$	0.70	$	0.24	$	0.15

Incentive Plan securities excluded from dilution⁽¹⁾	195		289		78


(1)	Represents securities not included in the computation of diluted earnings per common share because their effect would have been anti-dilutive. Awards subject to the achievement of performance and market conditions are not included in any of the fiscal years presented as such conditions had not been met at the end of any of those periods.

We calculate earnings per share using the “two-class” method, whereby unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents are “participating securities” and, therefore, these participating securities are treated as a separate class in computing earnings per share. The calculation of earnings per share presented here excludes the income attributable to unvested restricted stock units related to our Incentive Plan from the numerator and excludes the dilutive impact of those shares from the denominator.