Earnings Per Common Share

Basic EPS is computed based upon the weighted average number of common shares outstanding for the year. Diluted EPS is computed based upon the weighted average number of common shares outstanding for the year plus the dilutive effect of common stock equivalents using the treasury stock method and the average market price of our common stock for the year. We include participating securities (nonvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents) in the computation of EPS pursuant to the two-class method. Our participating securities consist solely of nonvested restricted stock awards, which have contractual participation rights equivalent to those of stockholders of unrestricted common stock. The two-class method of computing earnings per share is an allocation method that calculates earnings per share for common stock and participating securities.

The following table sets forth the computation of basic and diluted EPS available to stockholders of common stock (excluding participating securities):



	Year Ended July 31,
	2018			2017			2016
Numerator for basic and diluted earnings per share:
Net income	$	91,041		$	71,378		$	59,953
Less income allocated to participating securities	(320		)	(431		)	(488		)
Net income available to common shareholders	$	90,721		$	70,947		$	59,465
Denominator for basic and diluted earnings per share, as adjusted for participating securities:
Denominator for basic earnings per share - weighted average number of shares outstanding attributable to common stock	41,567,722			41,468,487			41,344,013
Dilutive effect of stock options using the treasury stock method and the average market price for the year	67,356			74,278			46,181
Denominator for diluted earnings per share - weighted average number of shares and common stock equivalents attributable to common stock	41,635,078			41,542,765			41,390,194
Earnings per share attributable to common stock:
Basic earnings per share	$	2.18		$	1.71		$	1.44
Diluted earnings per share	$	2.18		$	1.71		$	1.44
Stock options excluded from weighted average dilutive common shares outstanding because their inclusion would have been antidilutive	—			—			—

A reconciliation of weighted average number of shares and common stock equivalents attributable to common stock, as determined above, to our total weighted average number of shares and common stock equivalents, including participating securities, is set forth in the following table:



	Year Ended July 31,
	2018	2017	2016
Denominator for diluted earnings per share - weighted average number of shares and common stock equivalents attributable to common stock	41,635,078	41,542,765	41,390,194
Participating securities	148,700	254,727	340,363
Total weighted average number of shares and common stock equivalents attributable to both common stock and participating securities	41,783,778	41,797,492	41,730,557