Earnings Per Share Attributable to Federated Hermes, Inc. Shareholders

12 Months Ended

Dec. 31, 2019

Earnings Per Share Attributable to Federated Hermes, Inc. Shareholders

The following table sets forth the computation of basic and diluted earnings per share using the two-class method for amounts attributable to Federated for the years ended December 31:



(in thousands, except per share data)	2019			2018			2017
Numerator
Net Income Attributable to Federated Hermes, Inc.¹	$	272,339		$	220,297		$	291,341
Less: Total Net Income Available to Participating Unvested Restricted Shareholders²	(10,234		)	(8,555		)	(11,420		)
Total Net Income Attributable to Federated Common Stock - Basic¹	$	262,105		$	211,742		$	279,921
Less: Total Net Income Available to Unvested Restricted Shareholders of a Nonpublic Consolidated Subsidiary	(872		)	(794		)	0
Total Net Income Attributable to Federated Common Stock - Diluted¹	$	261,233		$	210,948		$	279,921
Denominator
Basic Weighted-Average Federated Common Stock³	97,259			96,949			97,411
Dilutive Potential Shares from Stock Options	0			0			1
Diluted Weighted-Average Federated Common Stock³	97,259			96,949			97,412
Earnings Per Share
Net Income Attributable to Federated Common Stock - Basic and Diluted^3,4	$	2.69		$	2.18		$	2.87


1	2017 includes a $70.4 million reduction to the income tax provision resulting from the revaluation of the net deferred tax liability due to the enactment of the Tax Act, thereby increasing net income.


2	Includes dividends paid on unvested restricted Federated Class B Common shares and their proportionate share of undistributed earnings attributable to Federated shareholders.


3	Federated Common Stock excludes unvested restricted stock which are deemed participating securities in accordance with the two-class method of computing earnings per share.

2017 includes a $0.69 increase to earnings per share resulting from the revaluation of the net deferred tax liability due to the enactment of the Tax Act.