Common Share and Earnings Per Common Share

6 Months Ended

May 31, 2019

Common Share and Earnings Per Common Share

Basic and diluted earnings per share amounts were calculated by dividing net income by the weighted average number of common shares outstanding. The numerators and denominators used to calculate basic and diluted earnings per share are as follows (in thousands):



	For the Three Months Ended						For the Six Months Ended
	May 31, 2019			June 30, 2018			May 31, 2019			June 30, 2018
Numerator for earnings per share:
Net income attributable to Jefferies Financial Group Inc. common shareholders	$	670,764		$	725,529		$	715,575		$	850,054
Allocation of earnings to participating securities (1)	(4,086		)	(3,870		)	(4,241		)	(3,831		)
Net income attributable to Jefferies Financial Group Inc. common shareholders for basic earnings per share	666,678			721,659			711,334			846,223
Adjustment to allocation of earnings to participating securities related to diluted shares (1)	43			37			34			29
Mandatorily redeemable convertible preferred share dividends	1,276			—			2,552			—
Net income attributable to Jefferies Financial Group Inc. common shareholders for diluted earnings per share	$	667,997		$	721,696		$	713,920		$	846,252

Denominator for earnings per share:
Weighted average common shares outstanding	293,600			342,719			299,067			349,647
Weighted average shares of restricted stock outstanding with future service required	(1,873		)	(1,868		)	(1,851		)	(1,578		)
Weighted average RSUs outstanding with no future service required	15,283			11,198			13,892			11,168
Denominator for basic earnings per share – weighted average shares	307,010			352,049			311,108			359,237
Stock options	—			7			—			18
Senior executive compensation plan awards	1,355			4,019			2,466			3,430
Mandatorily redeemable convertible preferred shares	4,162			—			4,162			—
Denominator for diluted earnings per share	312,527			356,075			317,736			362,685

(1)

Represents dividends declared during the period on participating securities plus an allocation of undistributed earnings to participating securities. Net losses are not allocated to participating securities. Participating securities represent restricted stock and RSUs for which requisite service has not yet been rendered and amounted to weighted average shares of 1,881,600 and 1,887,100 for the three months ended May 31, 2019 and June 30, 2018, respectively, and 1,856,400 and 1,603,500 for the six months ended May 31, 2019 and June 30, 2018, respectively. Dividends declared on participating securities were not material during the three and six months ended May 31, 2019 and June 30, 2018. Undistributed earnings are allocated to participating securities based upon their right to share in earnings if all earnings for the period had been distributed.

For the three and six months ended June 30, 2018, shares related to the mandatorily redeemable convertible preferred shares were not included in the computation of diluted per share amounts as the effect was antidilutive.

The Board of Directors from time to time has authorized the repurchase of our common shares. In January 2019, the Board of Directors approved an additional $500.0 million share repurchase authorization. During the six months ended May 31, 2019, we purchased a total of 17,350,000 of our common shares for an aggregate purchase price of $344.5 million under these authorizations. At May 31, 2019, $155.5 million remained available for repurchase. Additionally, in connection with the HomeFed merger on July 1, 2019, our Board of Directors has authorized the repurchase of an additional 9.25 million shares in the open market.