8. Net Income Per Common Share

Net income per Common Share is computed by dividing net income (after deducting restricted stock dividends and the applicable preferential Class A Common Stock dividends) by the weighted average Common Shares outstanding of 52,639,355 for 2011, 52,402,387 for 2010, and 52,558,657 for 2009. The preferential dividend on the Class A Common Stock of $.01665 per share has been added to the net income per Class A Common Share for all years presented.

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:


	Years ended July 31,
	2011			2010			2009
Numerator
Net income (numerator for basic and diluted Class A net income per share)	$	108,652		$	81,956		$	70,122
Less:
Restricted stock dividends		(223	)		(147	)		(144	)

Numerator for basic and diluted Class A net income per share	$	108,429		$	81,809		$	69,978

Less:
Preferential dividends		(820	)		(816	)		(823	)
Preferential dividends on dilutive stock options		(6	)		(11	)		(11	)

Numerator for basic and diluted Class B net income per share	$	107,603		$	80,982		$	69,144

Denominator:
Denominator for basic net income per share for both Class A and B		52,639			52,402			52,559
Plus: effect of dilutive stock options		494			544			307

Denominator for diluted net income per share for both Class A and B		53,133			52,946			52,866

Class A common stock net income per share calculation:
Basic	$	2.06		$	1.56		$	1.33
Diluted	$	2.04		$	1.55		$	1.32
Class B common stock net income per share calculation:
Basic	$	2.04		$	1.55		$	1.32
Diluted	$	2.03		$	1.53		$	1.31

Options to purchase 3,049,611, 2,832,337, and 2,764,308 shares of Class A common stock were excluded from the computations of diluted net income per share for years ended July 31, 2011, 2010, and 2009, respectively, because the option exercise prices were greater than the average market price of the common shares and, therefore, the effect would be anti-dilutive.