Net Income Per Common Share

12 Months Ended

Jul. 31, 2012

Net Income Per Common Share [Abstract]

Net Income Per Common Share

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 52,453,285 for 2012, 52,639,355 for 2011, and 52,402,387 for 2010. 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,
	2012			2011			2010
Numerator
Net (loss) income (numerator for basic and diluted Class A net income per share)	$	(17,911	)	$	108,652		$	81,956
Less:
Restricted stock dividends		(2029	)		(223	)		(147	)
Numerator for basic and diluted Class A net income per share	$	(18,140	)	$	108,429		$	81,809
Less:
Preferential dividends		(818	)		(820	)		(816	)
Preferential dividends on dilutive stock options		(5	)		(6	)		(11	)
Numerator for basic and diluted Class B net income per share	$	(18,963	)	$	107,603		$	80,982
Denominator:
Denominator for basic net (loss) income per share for both Class A and B		52,453			52,639			52,402
Plus: effect of dilutive stock options		—			494			544
Denominator for diluted net (loss) income per share for both Class A and B		52,453			53,133			52,946
Class A common stock net (loss) income per share calculation:
Basic	$	(0.35	)	$	2.06		$	1.56
Diluted	$	(0.35	)	$	2.04		$	1.55
Class B common stock net (loss) income per share calculation:
Basic	$	(0.36	)	$	2.04		$	1.55
Diluted	$	(0.36	)	$	2.03		$	1.53

In accordance with ASC 260, “Earnings per Share,” dilutive options were not included in the computation of diluted loss per share for fiscal 2012 since to do so would reduce the calculated loss per share.

Options to purchase 4,592,486, 3,049,611 and 2,832,337 shares of Class A Nonvoting Common Stock for fiscal years ended July 31, 2012, 2011 and 2010, respectively, were not included in the computation of diluted net loss or net gain per share because the impact of the inclusion of the options would have been anti-dilutive.