XML 30 R19.htm IDEA: XBRL DOCUMENT v3.20.2
Earnings Per Share
 9 Months Ended
Sep. 30, 2020
Earnings Per Share [Abstract]  
Earnings Per Share
Note 12. Earnings Per Share
Basic earnings per share is computed under the two-class method by dividing income available to Class A common stockholders by the weighted average number of Class A common shares outstanding during the period. Unvested restricted share-based awards are excluded from the number of Class A common shares outstanding for the basic earnings per share calculation because the shares have not yet been earned by employees. Income available to Class A common stockholders is computed by reducing net income attributable to APAM by earnings (both distributed and undistributed) allocated to participating securities, according to their respective rights to participate in those earnings. Except for certain performance share units, unvested share-based awards are participating securities because the awards include non-forfeitable dividend rights during the vesting period. Class B and Class C common shares do not share in profits of APAM and therefore are not reflected in the calculations.
Diluted earnings per share is computed under the more dilutive of the treasury stock method or the two-class method. The weighted average number of Class A common shares outstanding during the period is increased by the assumed conversion of nonparticipating unvested share-based awards into Class A common stock using the treasury stock method.
The computation of basic and diluted earnings per share for the three and nine months ended September 30, 2020 and 2019 were as follows:
 For the Three Months Ended September 30, For the Nine Months Ended September 30,
Basic and Diluted Earnings Per Share2020201920202019
Numerator:
Net income attributable to APAM$58,527 $41,256 $139,503 $111,983 
Less: Allocation to participating securities6,006 4,494 16,944 16,521 
Net income available to common stockholders$52,521 $36,762 $122,559 $95,462 
Denominator:
Basic weighted average shares outstanding56,402,503 51,448,938 55,188,563 50,950,618 
Dilutive effect of nonparticipating equity awards5,769 — 1,923 — 
Diluted weighted average shares outstanding56,408,272 51,448,938 55,190,486 50,950,618 
Earnings per share - Basic $0.93 $0.71 $2.22 $1.87 
Earnings per share - Diluted$0.93 $0.71 $2.22 $1.87 
Allocation to participating securities in the table above primarily represents dividends paid to holders of unvested restricted share-based awards, which reduces net income available to common stockholders.
The Holdings limited partnership units are anti-dilutive primarily due to the impact of public company expenses. Unvested restricted share-based awards with non-forfeitable dividend rights during the vesting period are considered participating securities and are therefore anti-dilutive. The following table summarizes the weighted-average shares outstanding that are excluded from the calculation of diluted earnings per share because their effect would have been anti-dilutive:
 For the Three Months Ended September 30, For the Nine Months Ended September 30,
Anti-Dilutive Weighted Average Shares Outstanding2020201920202019
Holdings limited partnership units17,177,313 21,594,086 18,308,766 21,958,470 
Unvested restricted share-based awards5,389,854 5,060,127 5,323,596 5,033,331 
Total22,567,167 26,654,213 23,632,362 26,991,801