Net Income per Common Share

3 Months Ended

Oct. 31, 2020

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:


	Three months ended October 31,
	2020		2019
Numerator (in thousands):
Net income (Numerator for basic and diluted income per Class A Nonvoting Common Share)	$	33,481	$	37,498
Less:
Preferential dividends	(808)		(828)
Preferential dividends on dilutive stock options	(4)		(10)
Numerator for basic and diluted income per Class B Voting Common Share	$	32,669	$	36,660
Denominator: (in thousands)
Denominator for basic income per share for both Class A and Class B	52,021		53,143
Plus: Effect of dilutive equity awards	271		593
Denominator for diluted income per share for both Class A and Class B	52,292		53,736
Net income per Class A Nonvoting Common Share:
Basic	$	0.64	$	0.71
Diluted	$	0.64	$	0.70
Net income per Class B Voting Common Share:
Basic	$	0.63	$	0.69
Diluted	$	0.62	$	0.68

Potentially dilutive securities attributable to outstanding stock options and restricted stock units were excluded from the calculation of diluted earnings per share where the combined exercise price and average unamortized fair value were greater than the average market price of Brady's Class A Nonvoting Common Stock because the effect would have been anti-dilutive. The amount of anti-dilutive shares were 740,745 and 323,719 for the three months ended October 31, 2020 and 2019, respectively.