Earnings Per Share

12 Months Ended

Mar. 31, 2019

EARNINGS PER SHARE

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



	Fiscal Year Ended March 31,
(in thousands, except share and per share data)	2019		2018		2017
Basic Earnings Per Share
Numerator for basic earnings per share
Net income attributable to Universal Corporation	$	104,121	$	105,662	$	106,304
Less: Dividends on convertible perpetual preferred stock	—		—		(11,061		)
Less: Cost in excess of carrying value on conversion or repurchase of convertible perpetual preferred stock	—		—		(74,353		)
Earnings available to Universal Corporation common shareholders for calculation of basic earnings per share	104,121		105,662		20,890

Denominator for basic earnings per share
Weighted average shares outstanding	25,129,192		25,274,975		23,433,860

Basic earnings per share	$	4.14	$	4.18	$	0.89

Diluted Earnings Per Share
Numerator for diluted earnings per share
Earnings available to Universal Corporation common shareholders	$	104,121	$	105,662	$	20,890

Denominator for diluted earnings per share:
Weighted average shares outstanding	25,129,192		25,274,975		23,433,860
Effect of dilutive securities (if conversion or exercise assumed)
Employee and outside director share-based awards	201,245		233,169		336,228
Denominator for diluted earnings per share	25,330,437		25,508,144		23,770,088

Diluted earnings per share	$	4.11	$	4.14	$	0.88

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 shares of the Company's common stock. In January 2017, the Company announced a mandatory conversion of all 107,418 remaining outstanding shares of the preferred stock after meeting the requirements to initiate the mandatory conversion under the original terms of the preferred shares. The Company chose to satisfy the conversion obligation for the mandatory conversion in cash. Although the conversions of the preferred stock into common stock or for cash did not impact the Company’s net income, the shares converted for cash under the mandatory conversion in January 2017 resulted in a one-time reduction of retained earnings of approximately $74.4 million during the fourth quarter ended March 31, 2017, representing the excess of the conversion cost over the carrying value of those shares. The reduction in retained earnings resulted in a corresponding one-time reduction of earnings available to common shareholders for the fiscal year ended March 31, 2017 for purposes of determining the amounts reported for basic and diluted earnings per share. The effects of the conversions on the computation of basic and diluted earnings per share for the fiscal year ended March 31, 2017, are included in the table above. See Note 12 for additional information.