Earnings Per Share

12 Months Ended

Oct. 31, 2011

Earnings Per Share [Abstract]

EARNINGS PER SHARE

NOTE 15—EARNINGS PER SHARE

The Company has two classes of common stock and, as such, applies the “two-class method” of computing earnings per share (“EPS”) as prescribed in ASC 260, “Earnings Per Share.” In accordance with this guidance, earnings are allocated first to Class A and Class B Common Stock to the extent that dividends are actually paid and the remainder allocated assuming all of the earnings for the period have been distributed in the form of dividends.

The Company calculates Class A EPS as follows: (i) multiply 40 percent times the average Class A shares outstanding, then divide that amount by the product of 40 percent of the average Class A shares outstanding plus 60 percent of the average Class B shares outstanding to get a percentage, (ii) undistributed net income divided by the average Class A shares outstanding, (iii) multiply item (i) by item (ii), (iv) add item (iii) to the Class A cash dividend. Diluted shares are factored into the Class A calculation.

The Company calculates Class B EPS as follows: (i) multiply 60 percent times the average Class B shares outstanding, then divide that amount by the product of 40 percent of the average Class A shares outstanding plus 60 percent of the average Class B shares outstanding to get a percentage, (ii) undistributed net income divided by the average Class B shares outstanding, (iii) multiply item (i) by item (ii), (iv) add item (iii) to the Class B cash dividend. Class B diluted EPS is identical to Class B basic EPS.

The following table provides EPS information for each period, respectively:

(In millions except per share data)	2011		2010		2009
Numerator
Numerator for basic and diluted EPS—
Net income attributable to Greif	$	176.0	$	210.0	$	110.6
Cash dividends		97.8		93.1		88.0
Undistributed net income attributable to Greif, Inc.	$	78.2	$	116.9	$	22.6
Denominator
Denominator for basic EPS—
Class A common stock		24.9		24.7		24.3
Class B common stock		22.3		22.4		22.5
Denominator for diluted EPS—
Class A common stock		25.0		25.0		24.6
Class B common stock		22.3		22.4		22.5
EPS Basic
Class A common stock	$	3.02	$	3.60	$	1.91
Class B common stock	$	4.52	$	5.40	$	2.86
EPS Diluted
Class A common stock	$	3.01	$	3.58	$	1.91
Class B common stock	$	4.52	$	5.40	$	2.86

Class A Common Stock is entitled to cumulative dividends of one cent a share per year after which Class B Common Stock is entitled to non-cumulative dividends up to a half-cent a share per year. Further distribution in any year must be made in proportion of one cent a share for Class A Common Stock to one and a half cents a share for Class B Common Stock. The Class A Common Stock has no voting rights unless four quarterly cumulative dividends upon the Class A Common Stock are in arrears. The Class B Common Stock has full voting rights. There is no cumulative voting for the election of directors.

Common Stock Repurchases

The Company’s Board of Directors has authorized the purchase of up to four million shares of Class A Common Stock or Class B Common Stock or any combination of the foregoing. During 2011, the Company repurchased 8,700 shares of Class A Common Stock and 291,300 shares of Class B Common Stock (refer to Item 5 to this Form 10-K for additional information regarding these repurchases). As of October 31, 2011, the Company had repurchased 3,183,272 shares, including 1,425,452 shares of Class A Common Stock and 1,757,820 shares of Class B Common Stock, under this program. The total cost of the shares repurchased from November 1, 2008 through October 31, 2011 was $20.9 million.

The following table summarizes the Company’s Class A and Class B common and treasury shares at the specified dates:

	Authorized Shares		Issued Shares		Outstanding Shares		Treasury Shares
October 31, 2011:
Class A Common Stock		128,000,000		42,281,920		24,972,029		17,309,891
Class B Common Stock		69,120,000		34,560,000		22,120,966		12,439,034
October 31, 2010:
Class A Common Stock		128,000,000		42,281,920		24,756,974		17,524,946
Class B Common Stock		69,120,000		34,560,000		22,412,266		12,147,734

The following is a reconciliation of the shares used to calculate basic and diluted earnings per share:

For the years ended October 31,	2011		2010		2009
Class A Common Stock:
Basic shares		24,869,573		24,654,364		24,328,724
Assumed conversion of stock options		174,869		304,712		311,259
Diluted shares		25,044,442		24,959,076		24,639,983
Class B Common Stock:
Basic and diluted shares		22,349,844		22,445,322		22,475,707

There were no stock options that were antidilutive for the years ended October 31, 2011, 2010, or 2009.

Dividends per Share

The Company pays quarterly dividends of varying amounts computed on the basis as described above. The annual dividends paid for the last two years are as follows:

2011 Dividends per Share - Class A $1.68; Class B $2.51

2010 Dividends per Share - Class A $1.60; Class B $2.39