Net Earnings per Common Share

Basic net earnings per common share is computed by dividing net earnings (after deducting the applicable preferential Class A Common Stock dividends) by the weighted average Common Shares outstanding of 51,677 for fiscal 2018, 51,056 for fiscal 2017, and 50,541 for fiscal 2016. The Company utilizes the two-class method to calculate earnings per share.

Reconciliations of the numerator and denominator of the basic and diluted per share computations for the Company’s Class A and Class B common stock are summarized as follows:



	Years ended July 31,
	2018			2017			2016
Numerator (in thousands):
Earnings (Numerator for basic and diluted earnings per Class A Nonvoting Common Share)	$	91,060		$	95,645		$	80,110
Less:
Preferential dividends	(799		)	(788		)	(783		)
Preferential dividends on dilutive stock options	(14		)	(14		)	(1		)
Numerator for basic and diluted earnings per Class B Voting Common Share	$	90,247		$	94,843		$	79,326
Denominator (in thousands):
Denominator for basic earnings per share for both Class A and Class B	51,677			51,056			50,541
Plus: Effect of dilutive equity awards	847			900			228
Denominator for diluted earnings per share for both Class A and Class B	52,524			51,956			50,769
Net earnings per Class A Nonvoting Common Share:
Basic	$	1.76		$	1.87		$	1.59
Diluted	$	1.73		$	1.84		$	1.58
Net earnings per Class B Voting Common Share:
Basic	$	1.75		$	1.86		$	1.57
Diluted	$	1.72		$	1.83		$	1.56

Options to purchase 751,200, 669,036, and 3,172,755 shares of Class A Nonvoting Common Stock for the fiscal years ended July 31, 2018, 2017, and 2016, respectively, were not included in the computation of diluted net earnings per share as the impact of the inclusion of the options would have been anti-dilutive.