Net Income Per Share Attributable to Evercore Inc. Common Shareholders

12 Months Ended

Dec. 31, 2022

Net Income Per Share Attributable to Evercore Inc. Common Shareholders

Net Income Per Share Attributable to Evercore Inc. Common ShareholdersThe calculations of basic and diluted net income per share attributable to Evercore Inc. common shareholders for the years ended December 31, 2022, 2021 and 2020 are described and presented below.


	For the Years Ended December 31,
		2022		2021		2020
Basic Net Income Per Share Attributable to Evercore Inc. Common Shareholders
Numerator:
Net income attributable to Evercore Inc. common shareholders		$	476,520	$	740,116	$	350,574




Denominator:
Weighted average Class A Shares outstanding, including vested RSUs		39,224		40,054		40,553


Basic net income per share attributable to Evercore Inc. common shareholders		$	12.15	$	18.48	$	8.64
Diluted Net Income Per Share Attributable to Evercore Inc. Common Shareholders
Numerator:
Net income attributable to Evercore Inc. common shareholders		$	476,520	$	740,116	$	350,574
Noncontrolling interest related to the assumed exchange of LP Units for Class A Shares(1)		—		—		—
Associated corporate taxes related to the assumed elimination of Noncontrolling Interest described above(1)		—		—		—


Diluted net income attributable to Evercore Inc. common shareholders		$	476,520	$	740,116	$	350,574
Denominator:
Weighted average Class A Shares outstanding, including vested RSUs		39,224		40,054		40,553
Assumed exchange of LP Units for Class A Shares(1)(2)		—		—		72
Additional shares of the Company's common stock assumed to be issued pursuant to non-vested RSUs, as calculated using the Treasury Stock Method		1,605		2,768		1,578
Shares that are contingently issuable(3)		208		499		420

Diluted weighted average Class A Shares outstanding		41,037		43,321		42,623


Diluted net income per share attributable to Evercore Inc. common shareholders		$	11.61	$	17.08	$	8.22

(1)The Company has outstanding Class A, E, I and K 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, 2022, 2021 and 2020, these 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 2,970, 4,854 and 5,126 for the years ended December 31, 2022, 2021 and 2020, 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 $43,520, $92,797 and $45,578 for the years ended December 31, 2022, 2021 and 2020, respectively. In computing this adjustment, the Company assumes that all Class A, E, I and K 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, E, I and K LP Units will result in a dilutive computation in future periods.

(2)The Company previously had outstanding Class J LP Units, which converted into Class E LP Units and ultimately became exchangeable into Class A Shares on a one-for-one basis. As of December 31, 2022, 2021 and 2020, no Class J LP Units remained issued or outstanding. See Note 18 for further information. During the year ended December 31, 2020, 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.

(3)The Company previously had outstanding Class I-P Units which were contingently exchangeable into Class I LP Units, and ultimately Class A Shares, and has 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. On March 1, 2022, all of the Class I-P Units converted to Class I LP Units. See Note 18 for further information. For the purposes of calculating diluted net income per share attributable to Evercore Inc. common shareholders, the Company's 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 shares of Class B common stock have no right to receive dividends or a distribution on liquidation or winding up of the Company. The shares of Class B common stock do not share in the earnings of the Company and no earnings are allocable to such class. Accordingly, basic and diluted net income per share of Class B common stock have not been presented.