Note 11 - Common Stock and Earnings Per Share

6 Months Ended

Feb. 28, 2019

Notes to Financial Statements

Earnings Per Share [Text Block]

1

1

. COMMON STOCK AND EARNINGS PER SHARE

On

February 15, 2019,

FactSet’s Board of Directors approved a regular quarterly dividend of

$0.64

per share. The cash dividend of

$24.4

million was paid on

March 19, 2019

to common stockholders of record at the close of business on

February 28, 2019.

Shares of common stock outstanding were as follows:

	Six Months ended February 28,
(i n thousands)	2019			2018
Balance, beginning of year (September 1)		38,192			39,023
Common stock issued for employee stock plans		426			495
Repurchase of common stock from employees (1)		(28	)		(6	)
Repurchase of common stock under the share repurchase program		(490	)		(585	)
Balance at February 28, 2019 and 2018, respectively		38,100			38,927

( 1 )   For the six months ended February 28 , 201 9 and 201 8 , the Company repurchased 27 , 852 and 5 , 563 shares, or $ 6 . 1 million and $ 1 . 0 million, of common stock, respectively, in settlement of employee tax withholding obligations due upon the vesting of restricted stock.

A reconciliation of the weighted average shares outstanding used in the basic and diluted earnings per share (“EPS”) 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 February 28, 2019
Basic EPS
Income available to common stockholders	$	84,702		38,055	$	2.23
Diluted EPS
Dilutive effect of stock options and restricted stock				564
Income available to common stockholders plus assumed conversions	$	84,702		38,619	$	2.19
For the three months ended February 28, 2018
Basic EPS
Income available to common stockholders	$	53,137		38,991	$	1.36
Diluted EPS
Dilutive effect of stock options and restricted stock				855
Income available to common stockholders plus assumed conversions	$	53,137		39,846	$	1.33
For the six months ended February 28, 2019
Basic EPS
Income available to common stockholders	$	168,998		38,081	$	4.44
Diluted EPS
Dilutive effect of stock options and restricted stock				633
Income available to common stockholders plus assumed conversions	$	168,998		38,714	$	4.37
For the six months ended February 28, 2018
Basic EPS
Income available to common stockholders	$	123,516		39,038	$	3.16
Diluted EPS
Dilutive effect of stock options and restricted stock				725
Income available to common stockholders plus assumed conversions	$	123,516		39,763	$	3.11

Dilutive potential common shares consist of stock options and unvested restricted stock awards. There were

447,709

stock options excluded from the calculation of diluted EPS for the

three

and

six

months ended

February 28, 2019,

because their inclusion would have been anti-dilutive. There were

no

stock options or unvested restricted stock awards excluded from the calculation of diluted EPS for the

three

and

six

months ended

February 28, 2018.

Performance-based stock options are omitted from the calculation of diluted EPS until the performance criteria is probable of being achieved. For the

three

and

six

months ended

February 28, 2019,

the number of performance-based stock option grants excluded from the calculation of diluted EPS was

206,417

.

For the

three

and

six

months ended

February 28, 2018,

the number of performance-based stock option grants excluded from the calculation of diluted EPS was

309,800

.