NOTE D — Net Income Per Common Share

In June 2008, the Financial Accounting Standards Board (“FASB”) issued accounting guidance addressing whether instruments granted in share-based payment transactions are participating securities prior to vesting, and therefore need to be included in the earnings allocation in computing earnings per share. This guidance requires that all outstanding unvested share-based payment awards that contain rights to non-forfeitable dividends be considered participating securities in undistributed earnings with common shareholders. The Company adopted the guidance during the first quarter of fiscal 2010. As a result, the dividends on the Company’s performance-based restricted shares are included in the basic and diluted earnings per share calculations for the respective periods presented.

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 April 30,						Nine Months Ended April 30,
	2011			2010			2011			2010
Numerator:
Net income (numerator for basic and diluted Class A net income per share)	$	28,589		$	23,695		$	79,069		$	60,364
Less:
Restricted stock dividends		(56	)		(37	)		(168	)		(111	)

Numerator for basic and diluted Class A net income per share	$	28,533		$	23,658		$	78,901		$	60,253


Less:
Preferential dividends		—			—			(820	)		(816	)
Preferential dividends on dilutive stock options		—			—			(6	)		(11	)

Numerator for basic and diluted Class B net income per share	$	28,533		$	23,658		$	78,075		$	59,426


Denominator:
Denominator for basic net income per share for both Class A and Class B		52,701			52,427			52,581			52,378
Plus: Effect of dilutive stock options		636			446			486			593

Denominator for diluted net income per share for both Class A and Class B		53,337			52,873			53,067			52,971


Class A Nonvoting Common Stock net income per share:
Basic	$	0.54		$	0.45		$	1.50		$	1.15
Diluted	$	0.54		$	0.45		$	1.49		$	1.14

Class B Voting Common Stock net income per share:
Basic	$	0.54		$	0.45		$	1.48		$	1.13
Diluted	$	0.54		$	0.45		$	1.47		$	1.12

Options to purchase approximately 2,500,000 and 3,100,000 shares of Class A Nonvoting Common Stock for the three and nine months ended April 30, 2011, respectively, and 2,800,000 and 2,700,000 shares of Class A Nonvoting Common Stock for the three and nine months ended April 30, 2010, respectively, were not included in the computations of diluted net income per share because the option exercise price was greater than the average market price of the common shares and, therefore, the effect would be anti-dilutive.