Note 11. Common Stock and Earnings Per Share

3 Months Ended

Nov. 30, 2012

Earnings Per Share [Text Block]

11. COMMON STOCK AND EARNINGS PER SHARE

On November 15, 2012, FactSet’s Board of Directors approved a regular quarterly dividend of $0.31 per share, or $1.24 per share per annum. The cash dividend of $13.7 million was paid on December 18, 2012, to common stockholders of record on November 30, 2012.  Shares of common stock outstanding were as follows (in thousands):

	Three Months Ended November 30,
	2012			2011
Balance at September 1		44,279			45,055
Common stock issued for employee stock plans		333			209
Repurchase of common stock		(270	)		(150	)
Balance at November 30		44,342			45,114

A reconciliation of the weighted average shares outstanding used in the basic and diluted earnings per share computations is as follows (in thousands, except per share data):

	Net Income (Numerator)		Weighted Average Common Shares (Denominator)		Per Share Amount
For the three months ended November 30, 2012
Basic EPS
Income available to common stockholders	$	49,769		44,316	$	1.12
Diluted EPS
Dilutive effect of stock options and restricted stock				668
Income available to common stockholders plus assumed conversions	$	49,769		44,984	$	1.11
For the three months ended November 30, 2011
Basic EPS
Income available to common stockholders	$	45,544		45,107	$	1.01
Diluted EPS
Dilutive effect of stock options and restricted stock				996
Income available to common stockholders plus assumed conversions	$	45,544		46,103	$	0.99

Dilutive potential common shares consist of stock options and unvested restricted stock awards. The number of stock options excluded from the calculation of diluted earnings per share for the three months ended November 30, 2012 and 2011 was 442,728 and 160,786, respectively, because their inclusion would have been anti-dilutive. The number of restricted stock awards excluded from the calculation of diluted earnings per share for the three months ended November 30, 2012 and 2011 was 30,456 and 30,090, respectively.  For the three months ended November 30, 2012 and 2011, the number of performance-based stock option grants excluded from the calculation of diluted earnings per share was 2,669,380 and 2,329,439, respectively. Performance-based stock options are omitted from the calculation of diluted earnings per share until the performance criteria have been met. The criteria had not yet been met at November 30, 2012 and 2011 for these performance-based stock options.