Note 11. Common Stock and Earnings Per Share

6 Months Ended

Feb. 28, 2013

Earnings Per Share [Text Block]

11. COMMON STOCK AND EARNINGS PER SHARE

On February 21, 2013, 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 $13.5 million was paid on March 19, 2013, to common stockholders of record on February 28, 2013.  Shares of common stock outstanding were as follows (in thousands):

	Six Months Ended
	February 28, 2013			February 29, 2012
Balance at September 1		44,279			45,055
Common stock issued for employee stock plans		780			364
Repurchase of common stock		(1,480	)		(658	)
Balance at February 28, 2013 and February 29, 2012, respectively		43,579			44,761

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 February 28, 2013
Basic EPS
Income available to common stockholders	$	44,539		43,813	$	1.02
Diluted EPS
Dilutive effect of stock options and restricted stock				642
Income available to common stockholders plus assumed conversions	$	44,539		44,455	$	1.00
For the three months ended February 29, 2012
Basic EPS
Income available to common stockholders	$	46,746		44,880	$	1.04
Diluted EPS
Dilutive effect of stock options and restricted stock				827
Income available to common stockholders plus assumed conversions	$	46,746		45,707	$	1.02
For the six months ended February 28, 2013
Basic EPS
Income available to common stockholders	$	94,307		44,065	$	2.14
Diluted EPS
Dilutive effect of stock options and restricted stock				723
Income available to common stockholders plus assumed conversions	$	94,307		44,788	$	2.11
For the six months ended February 29, 2012
Basic EPS
Income available to common stockholders	$	92,290		44,993	$	2.05
Diluted EPS
Dilutive effect of stock options and restricted stock				979
Income available to common stockholders plus assumed conversions	$	92,290		45,972	$	2.01

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 February 28, 2013 and February 29, 2012 was 476,657 and 440,515, 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 six months ended February 28, 2013 and February 29, 2012 was 465,332 and 300,651, 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 and six months ended February 28, 2013 and February 29, 2012 was 30,456 and 30,090, respectively.

For the three and six months ended February 28, 2013 the number of performance-based stock option grants excluded from the calculation of diluted earnings per share was 1,920,874. Similarly, for the three and six months ended February 29, 2012, the number of performance-based stock option grants excluded from the calculation of diluted earnings per share was 2,323,117. 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 February 28, 2013 and February 29, 2012 for these performance-based stock options.