Common Share and Earnings Per Common Share

3 Months Ended

Feb. 28, 2022

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 February 28,
		2022		2021
Numerator for earnings per share:
Net income attributable to Jefferies Financial Group Inc. common shareholders		$	327,447	$	582,435
Allocation of earnings to participating securities (1)		(1,976)		(3,216)
Net income attributable to Jefferies Financial Group Inc. common shareholders for basic earnings per share		325,471		579,219
Adjustment to allocation of earnings to participating securities related to diluted shares (1)		39		42
Mandatorily redeemable convertible preferred share dividends		2,070		1,626
Net income attributable to Jefferies Financial Group Inc. common shareholders for diluted earnings per share		$	327,580	$	580,887

Denominator for earnings per share:
Weighted average common shares outstanding		241,963		249,352
Weighted average shares of restricted stock outstanding with future service required		(1,557)		(1,461)
Weighted average RSUs outstanding with no future service required		17,146		18,495
Denominator for basic earnings per share – weighted average shares		257,552		266,386
Stock options and other share based awards		1,892		208
Senior executive compensation plan awards		2,686		1,846
Mandatorily redeemable convertible preferred shares		4,441		4,441
Denominator for diluted earnings per share		266,571		272,881

(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 1,571,000 and 1,482,000 for the three months ended February 28, 2022 and 2021, respectively. Dividends declared on

participating securities were not material during the three months ended February 28, 2022 and 2021. Undistributed earnings are allocated to participating securities based upon their right to share in earnings if all earnings for the period had been distributed.

Our Board of Directors from time to time has authorized the repurchase of our common shares. In January 2022, the Board of Directors increased the share repurchase authorization by $87.5 million. During the first quarter of 2022, we purchased a total of 10,038,189 of our common shares for $364.2 million, or an average price of $36.28 per share, including 6,848,095 of our common shares in the open market for $250.0 million under our current Board of Director authorization, and 3,190,094 shares of our common stock for $114.2 million in connection with net-share settlements under our equity compensation plan. At February 28, 2022, we had no remaining authorization of future repurchases. In March 2022, the Board of Directors increased the share repurchase authorization back up to $250.0 million.