Earnings Per Share

6 Months Ended

Oct. 31, 2011

Earnings Per Share [Abstract]

Earnings Per Share

4. Earnings Per Share

We calculate basic earnings per share by dividing net income available to common stockholders by the weighted average number of all unrestricted common shares outstanding during the period. Diluted earnings per share further includes the dilutive effect of stock options, stock-settled appreciation rights (“SSARs”), restricted stock units (“RSUs”), and deferred stock units (“DSUs”). We calculate that dilutive effect using the “treasury stock method” (as defined by GAAP).

We have granted restricted shares of common stock to certain employees as part of their compensation. These restricted shares contain non-forfeitable rights to dividends declared on common stock. As a result, the restricted shares are considered participating securities in the calculation of earnings per share.

The following table presents information concerning basic and diluted earnings per share:

	Three Months Ended October 31,						Six Months Ended October 31,
(Dollars in millions, except per share amounts)	2010			2011			2010			2011
Net income	$	154.0		$	157.6		$	265.4		$	275.6
Income allocated to participating securities (restricted shares)		(0.2	)		(0.1	)		(0.3	)		(0.1	)
Net income available to common stockholders	$	153.8		$	157.5		$	265.1		$	275.5
Share data (in thousands):
Basic average common shares outstanding		145,649			143,209			146,113			143,912
Dilutive effect of stock options, SSARs, RSUs, and DSUs		855			975			835			1,007
Diluted average common shares outstanding		146,504			144,184			146,948			144,919
Basic earnings per share	$	1.06		$	1.10		$	1.81		$	1.91
Diluted earnings per share	$	1.05		$	1.09		$	1.80		$	1.90

SSARs for approximately 407,000 common shares and 388,000 common shares were excluded from the calculation of diluted earnings per share for the three months ended October 31, 2010 and 2011, respectively. SSARs for approximately 417,000 common shares and 388,000 common shares were excluded from the calculation of diluted earnings per share for the six months ended October 31, 2010 and 2011, respectively. The SSARs were excluded because they were not dilutive for those periods under the treasury stock method.