Earnings Per Share

9 Months Ended

Dec. 31, 2016

EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per share:



	Three Months Ended December 31,						Nine Months Ended December 31,
(in thousands, except share and per share data)	2016			2015			2016			2015

Basic Earnings Per Share
Numerator for basic earnings per share
Net income attributable to Universal Corporation	$	53,647		$	44,534		$	73,435		$	61,052
Less: Dividends on convertible perpetual preferred stock	(3,687		)	(3,687		)	(11,061		)	(11,061		)
Earnings available to Universal Corporation common shareholders for calculation of basic earnings per share	49,960			40,847			62,374			49,991

Denominator for basic earnings per share
Weighted average shares outstanding	22,982,473			22,717,043			22,831,717			22,671,943

Basic earnings per share	$	2.17		$	1.80		$	2.73		$	2.20

Diluted Earnings Per Share
Numerator for diluted earnings per share
Earnings available to Universal Corporation common shareholders	$	49,960		$	40,847		$	62,374		$	49,991
Add: Dividends on convertible perpetual preferred stock (if conversion assumed)	3,687			3,687			11,061			—
Earnings available to Universal Corporation common shareholders for calculation of diluted earnings per share	53,647			44,534			73,435			49,991

Denominator for diluted earnings per share
Weighted average shares outstanding	22,982,473			22,717,043			22,831,717			22,671,943
Effect of dilutive securities (if conversion or exercise assumed)
Convertible perpetual preferred stock	4,693,155			4,857,262			4,816,904			—
Employee share-based awards	320,955			280,603			318,594			285,107
Denominator for diluted earnings per share	27,996,583			27,854,908			27,967,215			22,957,050

Diluted earnings per share	$	1.92		$	1.60		$	2.63		$	2.18

In December 2016, 111,072 shares of the Company’s Series B 6.75% Convertible Perpetual Preferred Stock were converted into approximately 2.5 million of the Company's common stock. The effect from the conversion on the computation of basic and diluted earnings per share for the three and nine months ended December 31, 2016, is included in the table above. See Note 3 for additional information.

The Company had the following potentially dilutive securities (stock appreciation rights) outstanding for the nine months ended December 31, 2016 and 2015 that were not included in the computation of diluted earnings per share because their exercise price exceeded the market price of the Company's common stock, and thus their effect would have been antidilutive:



	Nine Months Ended December 31,
	2016		2015

Potentially dilutive securities	122,200		133,600
Weighted-average exercise price	$	62.66	$	62.66