Earnings Per Share

9 Months Ended

May 31, 2011

9. Earnings per share

Basic earnings per share is computed by dividing net earnings available to common stockholders by the weighted average number of common shares outstanding, which has been modified to include the effects of all participating securities (unvested share-based payment awards with a right to receive nonforfeitable dividends) as prescribed by the two-class method under ASC 260, Earnings Per Share (“ASC 260”), during the period. Diluted earnings per share is computed similarly but reflects the potential dilution that would occur if dilutive options were exercised and other distributions related to deferred stock agreements were incurred. Stock options of 138,848 shares (whole units) were excluded from the diluted earnings per share calculation for the three months ended May 31, 2011, as the effect of inclusion would have been antidilutive. No stock options were considered antidilutive and excluded from the diluted earnings per share calculation for the three months ended May 31, 2010. Stock options of 119,470 shares (whole units) and 288,034 shares (whole units) were excluded from the diluted earnings per share calculation for the nine months ended May 31, 2011 and 2010, respectively, as the effect of inclusion would have been antidilutive. Further discussion of the Company’s stock options and restricted stock awards are included within the Common Stock and Related Matters and Share-Based Payments footnotes of the Notes to Consolidated Financial Statements within the Company’s Form 10-K.

The following table calculates basic and diluted earnings per common share for the three and nine months ended May 31, 2011 and 2010:


	Three Months Ended				Nine Months Ended
	May 31,				May 31,
	2011		2010		2011		2010
Basic earnings per share from continuing operations:
Income from continuing operations	$	27.1	$	21.3	$	71.3	$	51.8

Basic weighted average shares outstanding		42.5		42.7		42.3		42.5

Basic earnings per share from continuing operations	$	0.63	$	0.49	$	1.66	$	1.20


Diluted earnings per share from continuing operations:
Income from continuing operations	$	27.1	$	21.3	$	71.3	$	51.8

Basic weighted average shares outstanding		42.5		42.7		42.3		42.5
Common stock equivalents		0.6		0.8		0.6		0.8

Diluted weighted average shares outstanding		43.1		43.5		42.9		43.3

Diluted earnings per share from continuing operations	$	0.62	$	0.48	$	1.63	$	1.17


Basic earnings per share from discontinued operations:
Income from discontinued operations	$	—	$	—	$	—	$	0.6

Basic weighted average shares outstanding		42.5		42.7		42.3		42.5

Basic earnings per share from discontinued operations	$	—	$	—	$	—	$	0.01


Diluted earnings per share from discontinued operations:
Income from discontinued operations	$	—	$	—	$	—	$	0.6

Basic weighted average shares outstanding		42.5		42.7		42.3		42.5
Common stock equivalents		0.6		0.8		0.6		0.8

Diluted weighted average shares outstanding		43.1		43.5		42.9		43.3

Diluted earnings per share from discontinued operations	$	—	$	—	$	—	$	0.01