NOTE 4. EARNINGS PER SHARE

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

	Fiscal Year Ended March 31,
	2011			2010			2009
Basic Earnings Per Share
Numerator for basic earnings per share
Net income attributable to Universal Corporation	$	156,565		$	168,397		$	131,739
Less: Dividends on convertible perpetual preferred stock		(14,850	)		(14,850	)		(14,850	)
Earnings available to Universal Corporation common shareholders for calculation of basic earnings per share		141,715			153,547			116,889
Denominator for basic earnings per share
Weighted average shares outstanding		23,859			24,732			25,570
Basic earnings per share	$	5.94		$	6.21		$	4.57
Diluted Earnings Per Share
Numerator for diluted earnings per share
Earnings available to Universal Corporation common shareholders	$	141,715		$	153,547		$	116,889
Add: Dividends on convertible perpetual preferred stock (if conversion assumed)		14,850			14,850			14,850
Earnings available to Universal Corporation common shareholders for calculation of diluted earnings per share		156,565			168,397			131,739
Denominator for diluted earnings per share:
Weighted average shares outstanding		23,859			24,732			25,570
Effect of dilutive securities (if conversion or exercise assumed)
Convertible perpetual preferred stock		4,750			4,733			4,718
Employee share-based awards		279			197			178
Denominator for diluted earnings per share		28,888			29,662			30,466
Diluted earnings per share	$	5.42		$	5.68		$	4.32

For the fiscal years ended March 31, 2011, 2010, and 2009, certain stock appreciation rights and certain stock options outstanding were not included in the computation of diluted earnings per share because their effect would have been antidilutive. These shares totaled 622,801 at a weighted-average exercise price of $53.44 for the fiscal year ended March 31, 2011, 404,800 at a weighted-average exercise price of $58.96 for the fiscal year ended March 31, 2010, and 507,801 at a weighted-average exercise price of $56.52 for the fiscal year ended March 31, 2009.