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Per Common Share Amounts
 12 Months Ended
Sep. 30, 2019
Earnings Per Share [Abstract]  
Earnings Per Share Per Common Share Amounts
Earnings per common share reflects net income attributable to RMR Inc. divided by our weighted average common shares outstanding. Basic and diluted weighted average common shares outstanding represents our outstanding Class A Common Shares and our Class B-1 Common Shares during the applicable periods. Our Class B-2 Common Shares, which are paired with ABP Trust’s Class A Units, have no independent economic interest in RMR Inc. and thus are not included as common shares outstanding for purposes of calculating our net income attributable to RMR Inc. per common share.
Unvested Class A Common Shares granted to our employees are deemed participating securities for purposes of calculating earnings per common share because they have dividend rights. We calculate earnings per share using the two-class method. Under the two-class method, we allocate earnings proportionately to vested Class A Common Shares and Class B-1 Common
Shares outstanding and unvested Class A Common Shares outstanding for the period. Earnings attributable to unvested Class A Common Shares are excluded from earnings per share under the two-class method as reflected in our consolidated statements of comprehensive income.
The calculation of basic and diluted earnings per share is as follows:
 
 
Fiscal Year Ended September 30,
 
 
2019
 
2018
 
2017
Basic EPS
 
 
 
 
 
 
Numerator:
 
 
 
 
 
 
Net income attributable to The RMR Group Inc.
 
$
74,580

 
$
96,041

 
$
42,293

Income attributable to unvested participating securities
 
(482
)
 
(564
)
 
(158
)
Net income attributable to The RMR Group Inc. used in calculating basic EPS
 
$
74,098

 
$
95,477

 
$
42,135

Denominator:
 
 
 
 
 
 
Weighted average common shares outstanding - basic
 
16,132

 
16,077

 
16,032

Net income attributable to The RMR Group Inc. per common share - basic
 
$
4.59

 
$
5.94

 
$
2.63

 
 
 
 
 
 
 
Diluted EPS
 
 
 
 
 
 
Numerator:
 
 
 
 
 
 
Net income attributable to The RMR Group Inc.
 
$
74,580

 
$
96,041

 
$
42,293

Income attributable to unvested participating securities
 
(482
)
 
(564
)
 
(158
)
Net income attributable to The RMR Group Inc. used in calculating diluted EPS
 
$
74,098

 
$
95,477

 
$
42,135

Denominator:
 
 
 
 
 
 
Weighted average common shares outstanding - basic
 
16,132

 
16,077

 
16,032

Dilutive effect of incremental unvested shares
 
11

 
43

 
16

Weighted average common shares outstanding - diluted
 
16,143

 
16,120

 
16,048

Net income attributable to The RMR Group Inc. per common share - diluted
 
$
4.59

 
$
5.92

 
$
2.63


The 15,000,000 Class A Units that we do not own may be redeemed for our Class A Common Shares on a one-for-one basis, or upon such redemption, we may elect to pay cash instead of issuing Class A Common Shares. Upon redemption of a Class A Unit, the Class B-2 Common Share “paired” with such unit is canceled for no additional consideration. If all outstanding Class A Units that we do not own had been redeemed for our Class A Common Shares in the periods presented, our Class A Common Shares outstanding as of September 30, 2019, would have been 30,302,710. In computing the dilutive effect, if any, that the aforementioned redemption would have on earnings per share, we considered that net income available to holders of our Class A Common Shares would increase due to elimination of the noncontrolling interest (including any tax impact). For the periods presented, such redemption is not reflected in diluted earnings per share as the assumed redemption would be anti-dilutive.