Earnings Per Share and Dividends

9 Months Ended

May 31, 2011

Earnings Per Share and Dividends [Abstract]

Earnings Per Share and Dividends

Note 3. Earnings Per Share and Dividends

a. Earnings Per Share

     The Company calculates its basic earnings per share by dividing net income attributable to Jabil Circuit, Inc. by the weighted average number of common shares and participating securities outstanding during the period. In periods of a net loss, participating securities are not included in the basic loss per share calculation as such participating securities are not contractually obligated to fund losses. The Company’s diluted earnings per share is calculated in a similar manner, but includes the effect of dilutive securities. To the extent these securities are anti-dilutive, they are excluded from the calculation of diluted earnings per share. The following table sets forth the calculations of basic and diluted earnings per share attributable to the stockholders of Jabil Circuit, Inc. (in thousands, except earnings per share data):

	Three months ended				Nine months ended
	May 31,		May 31,		May 31,		May 31,
	2011		2010		2011		2010
Numerator:
Net income attributable to Jabil Circuit, Inc.	$	104,695	$	52,031	$	266,775	$	110,149
Denominator for basic and diluted earnings per share:
Weighted-average common shares outstanding		213,862		209,813		212,876		209,121
Share-based payment awards classified as participating securities		1,843		4,068		2,216		4,930
Denominator for basic earnings per share		215,705		213,881		215,092		214,051
Dilutive common shares issuable under the employee stock purchase plan and upon exercise of stock options and stock appreciation rights		806		413		869		265
Dilutive unvested restricted stock awards		5,826		2,228		4,812		3,773
Denominator for diluted earnings per share		222,337		216,522		220,773		218,089
Earnings per share:
Income attributable to the stockholders of Jabil Circuit, Inc.:
Basic	$	0.49	$	0.24	$	1.24	$	0.51
Diluted	$	0.47	$	0.24	$	1.21	$	0.51

     For the three months and nine months ended May 31, 2011, options to purchase 4,107,337 and 4,120,993 shares of common stock, respectively, and 5,288,984 and 5,360,899 stock appreciation rights, respectively, were excluded from the computation of diluted earnings per share as their effect would have been anti-dilutive. For the three months and nine months ended May 31, 2010, options to purchase 5,204,495 and 6,319,622 shares of common stock, respectively, and 7,990,732 and 7,997,232 stock appreciation rights, respectively, were excluded from the computation of diluted earnings per share as their effect would have been anti-dilutive.

b. Dividends

     The following table sets forth certain information relating to the Company’s cash dividends declared to common stockholders of the Company during the nine months ended May 31, 2011 and 2010:

Dividend Information
			Total Cash
	Dividend	Dividend	Dividends		Date of Record for	Dividend Cash
	Declaration Date	per Share	Declared		Dividend Payment	Payment Date
		(in thousands, except for per share data)
Fiscal year 2011:	October 25, 2010	$0.07	$15,563		November 15, 2010	December 1, 2010
	January 25, 2011	$0.07	$15,634		February 15, 2011	March 1, 2011
	April 13, 2011	$0.07	$15,647		May 16, 2011	June 1, 2011
Fiscal year 2010:	October 22, 2009	$0.07	$15,186	(1)	November 16, 2009	December 1, 2009
	January 22, 2010	$0.07	$15,238		February 16, 2010	March 1, 2010
	April 14, 2010	$0.07	$15,221		May 17, 2010	June 1, 2010

(1) Of the $15.2 million in total dividends declared during the first quarter of fiscal year 2010, $14.4 million was paid out of additional paid-in capital (which represents the amount of dividends declared in excess of the Company’s retained earnings balance as of the date that the dividend was declared).