Note 11 - Common Stock and Earnings Per Share

9 Months Ended

May 31, 2014

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

11. COMMON STOCK AND EARNINGS PER SHARE

On May 5, 2014, FactSet’s Board of Directors approved an 11% increase in the regular quarterly dividend, beginning with the Company’s dividend payment in June 2014 of $0.39 per share, or $1.56 per share per annum. The cash dividend of $16.4 million was paid on June 17, 2014, to common stockholders of record on May 30, 2014.

Shares of common stock outstanding were as follows (in thousands): 

	Nine Months Ended May 31,
	2014			2013
Balance at September 1		43,324			44,279
Common stock issued for employee stock plans		562			1,775
Repurchase of common stock		(1,870	)		(2,016	)
Balance at May 31, 2014 and 2013, respectively		42,016			44,038

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):

			Weighted
	Net Income		Average Common Shares		Per Share
	(Numerator)		(Denominator)		Amount
For the three months ended May 31, 2014
Basic EPS
Income available to common stockholders	$	51,532		42,166	$	1.22
Diluted EPS
Dilutive effect of stock options and restricted stock				449
Income available to common stockholders plus assumed conversions	$	51,532		42,615	$	1.21
For the three months ended May 31, 2013
Basic EPS
Income available to common stockholders	$	53,367		43,954	$	1.21
Diluted EPS
Dilutive effect of stock options and restricted stock				531
Income available to common stockholders plus assumed conversions	$	53,367		44,485	$	1.20
For the nine months ended May 31, 2014
Basic EPS
Income available to common stockholders	$	156,136		42,615	$	3.66
Diluted EPS
Dilutive effect of stock options and restricted stock				555
Income available to common stockholders plus assumed conversions	$	156,136		43,170	$	3.62
For the nine months ended May 31, 2013
Basic EPS
Income available to common stockholders	$	147,674		44,028	$	3.35
Diluted EPS
Dilutive effect of stock options and restricted stock				756
Income available to common stockholders plus assumed conversions	$	147,674		44,784	$	3.30

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 May 31, 2014 and 2013 was 49,571 and 464,874, respectively, because their inclusion would have been anti-dilutive. The number of stock options excluded from the calculation of diluted earnings per share for the nine months ended May 31, 2014 and 2013 was 35,147 and 457,569, respectively, because their inclusion would have been anti-dilutive.

For the three and nine months ended May 31, 2014 the number of performance-based stock option grants excluded from the calculation of diluted earnings per share was 1,389,674. Similarly, for the three and nine months ended May 31, 2013, the number of performance-based stock option grants excluded from the calculation of diluted earnings per share was 1,886,622. 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 May 31, 2014 and 2013 for these performance-based stock options.