Net Income Per Share Attributable to Evercore Inc. Common Shareholders (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Basic and Diluted Net Income Per Share

The calculations of basic and diluted net income per share attributable to Evercore Inc. common shareholders for the years ended December 31, 2019, 2018 and 2017 are described and presented below.



	For the Years Ended December 31,
	2019		2018		2017
Basic Net Income Per Share Attributable to Evercore Inc. Common Shareholders
Numerator:
Net income attributable to Evercore Inc. common shareholders	$	297,436	$	377,240	$	125,454
Denominator:
Weighted average Class A Shares outstanding, including vested RSUs	39,994		40,595		39,641
Basic net income per share attributable to Evercore Inc. common shareholders	$	7.44	$	9.29	$	3.16
Diluted Net Income Per Share Attributable to Evercore Inc. Common Shareholders
Numerator:
Net income attributable to Evercore Inc. common shareholders	$	297,436	$	377,240	$	125,454
Noncontrolling interest related to the assumed exchange of LP Units for Class A Shares	(b)		(b)		(b)
Associated corporate taxes related to the assumed elimination of Noncontrolling Interest described above	(b)		(b)		(b)
Diluted net income attributable to Evercore Inc. common shareholders	$	297,436	$	377,240	$	125,454
Denominator:
Weighted average Class A Shares outstanding, including vested RSUs	39,994		40,595		39,641
Assumed exchange of LP Units for Class A Shares^(a)(b)	718		1,378		842
Additional shares of the Company's common stock assumed to be issued pursuant to non-vested RSUs and deferred consideration, as calculated using the Treasury Stock Method	2,082		2,906		2,719
Shares that are contingently issuable^(c)	400		400		1,624
Diluted weighted average Class A Shares outstanding	43,194		45,279		44,826
Diluted net income per share attributable to Evercore Inc. common shareholders	$	6.89	$	8.33	$	2.80

(a)

The Company has outstanding Class J LP Units, which convert into Class E LP Units and ultimately become exchangeable into Class A Shares on a one-for-one basis. During the years ended December 31, 2019, 2018 and 2017, the Class J LP Units were dilutive and consequently the effect of their exchange into Class A Shares has been included in the calculation of diluted net income per share attributable to Evercore Inc. common shareholders under the if-converted method. In computing this adjustment, the Company assumes that all Class J LP Units are converted into Class A Shares.

(b)

The Company also has outstanding Class A and E LP Units, which give the holders the right to receive Class A Shares upon exchange on a one-for-one basis. During the years ended December 31, 2019, 2018 and 2017, the Class A and E LP Units were antidilutive and consequently the effect of their exchange into Class A Shares has been excluded from the calculation of diluted net income per share attributable to Evercore Inc. common shareholders. The units that would have been included in the denominator of the computation of diluted net income per share attributable to Evercore Inc. common shareholders if the effect would have been dilutive were 5,254, 5,075 and 5,920 for the years ended December 31, 2019, 2018 and 2017, respectively. The adjustment to the numerator, diluted net income attributable to Class A common shareholders, if the effect would have been dilutive, would have been $39,940, $46,060 and $28,186 for the years ended December 31, 2019, 2018 and 2017, respectively. In computing this adjustment, the Company assumes that all vested Class A LP Units and all Class E LP Units are converted into Class A Shares, that all earnings attributable to those shares are attributed to Evercore Inc. and that the Company is subject to the statutory tax rates of a C-Corporation under a conventional corporate tax structure in the U.S. at prevailing corporate tax rates. The Company does not anticipate that the Class A and E LP Units will result in a dilutive computation in future periods.

(c)

The Company has outstanding Class I-P Units which are contingently exchangeable into Class I LP Units, and ultimately Class A Shares, and outstanding Class K-P Units which are contingently exchangeable into Class K LP Units, and ultimately Class A Shares, as they are subject to certain performance thresholds being achieved. The Company previously had outstanding Class G and H LP Interests which were contingently exchangeable into Class E LP Units, and ultimately Class A Shares. In July 2017, the Company exchanged all of the outstanding Class H LP Interests for a number of Class J LP Units. As of December 31, 2017, all of the Class G LP Interests either converted into Class E LP Units or were forfeited pursuant to their performance terms. See Note 19 for further discussion. For the purposes of calculating diluted net income per share attributable to Evercore Inc. common shareholders, the Company's Class G and H LP Interests, Class I-P Units and Class K-P Units are included in diluted weighted average Class A Shares outstanding as of the beginning of the period in which all necessary performance conditions have been satisfied. If all necessary performance conditions have not been satisfied by the end of the period, the number of shares that are included in diluted weighted average Class A Shares outstanding is based on the number of shares that would be issuable if the end of the reporting period were the end of the performance period. The Units/Interests that were assumed to be converted to an equal number of Class A Shares for purposes of computing diluted net income per share attributable to Evercore Inc. common shareholders were 400 for each of the years ended December 31, 2019 and 2018, and 1,624 for the year ended December 31, 2017.