Earnings per share

9 Months Ended

Jul. 31, 2011

Earnings per share. Basic earnings per share are computed based on the weighted-average number of common shares outstanding during each year, while diluted earnings per share are based on the weighted-average number of common shares and common share equivalents outstanding. Common share equivalents consist of shares issuable upon exercise of stock options computed using the treasury stock method, as well as nonvested (restricted) stock and deferred stock-based compensation. Options whose exercise price is higher than the average market price are excluded from the calculation of diluted earnings per share because the effect would be anti-dilutive. For the three months and nine months ended July 31, 2011, and the three months ended July 31, 2010, no options for common shares were excluded from the calculation of diluted earnings per share. For the nine months ended July 31, 2010, options for 23 common shares were excluded from the calculation of diluted earnings per share, because their effect would have been anti-dilutive.