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EARNINGS PER SHARE | 12 Months Ended
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Oct. 31, 2012
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) |  | 2012 |  |  | 2011 |  |  | 2010 |
Numerator |  |  |  |  |  |  |  |  |  |  |  |
Numerator for basic and diluted EPS - |  |  |  |  |  |  |  |  |  |  |  |
Net income attributable to Greif |  | $ | 126.1 |  |  | $ | 177.5 |  |  | $ | 202.8 |
Cash dividends |  |  | 97.7 |  |  |  | 97.8 |  |  |  | 93.1 |
Undistributed net income attributable to Greif, Inc. |  | $ | 28.4 |  |  | $ | 79.7 |  |  | $ | 109.7 |
Demonimator |  |  |  |  |  |  |  |  |  |  |  |
Denominator for basic EPS - |  |  |  |  |  |  |  |  |  |  |  |
Class A common stock |  |  | 25.2 |  |  |  | 24.9 |  |  |  | 24.7 |
Class B common stock |  |  | 22.1 |  |  |  | 22.3 |  |  |  | 22.4 |
Denominator for diluted EPS - |  |  |  |  |  |  |  |  |  |  |  |
Class A common stock |  |  | 25.2 |  |  |  | 25.0 |  |  |  | 25.0 |
Class B common stock |  |  | 22.1 |  |  |  | 22.3 |  |  |  | 22.4 |
EPS Basic |  |  |  |  |  |  |  |  |  |  |  |
Class A common stock |  | $ | 2.17 |  |  | $ | 3.05 |  |  | $ | 3.48 |
Class B common stock |  | $ | 3.24 |  |  | $ | 4.56 |  |  | $ | 5.21 |
EPS Diluted |  |  |  |  |  |  |  |  |  |  |  |
Class A common stock |  | $ | 2.17 |  |  | $ | 3.04 |  |  | $ | 3.46 |
Class B common stock |  | $ | 3.24 |  |  | $ | 4.56 |  |  | $ | 5.21 |
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 2012, the Company repurchased no shares of Class A Common Stock and 1,000 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, 2012, the Company had repurchased 3,184,272 shares, including 1,425,452 shares of Class A Common Stock and 1,758,820 shares of Class B Common Stock, under this program which were all repurchased in prior years except for the 1,000 shares referenced above. The total cost of the shares repurchased from November 1, 2009 through October 31, 2012 was $17.8 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, 2012: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Class A Common Stock |  |  | 128,000,000 |  |  |  | 42,281,920 |  |  |  | 25,283,465 |  |  |  | 16,998,455 |
Class B Common Stock |  |  | 69,120,000 |  |  |  | 34,560,000 |  |  |  | 22,119,966 |  |  |  | 12,440,034 |
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 |
The following is a reconciliation of the shares used to calculate basic and diluted earnings per share:
For the years ended October 31, |  | 2012 |  |  | 2011 |  |  | 2010 |
Class A Common Stock: |  |  |  |  |  |  |  |  |  |  |  |
Basic shares |  |  | 25,162,686 |  |  |  | 24,869,573 |  |  |  | 24,654,364 |
Assumed conversion of stock options |  |  | 73,306 |  |  |  | 180,253 |  |  |  | 299,448 |
Diluted shares |  |  | 25,235,992 |  |  |  | 25,049,826 |  |  |  | 24,953,812 |
Class B Common Stock: |  |  |  |  |  |  |  |  |  |  |  |
Basic and diluted shares |  |  | 22,120,391 |  |  |  | 22,349,844 |  |  |  | 22,445,322 |
No stock options were antidilutive for the years ended October 31, 2012, 2011, or 2010. 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: 2012 Dividends per Share – Class A $1.68; Class B $2.51 2011 Dividends per Share – Class A $1.68; Class B $2.51

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- Definition The entire disclosure for earnings per share. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 260 -SubTopic 10 -Section 45 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=7655603&loc=d3e1252-109256 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 260 -SubTopic 10 -Section 55 -Paragraph 52 -URI http://asc.fasb.org/extlink&oid=16381557&loc=d3e4984-109258 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 260 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 260 -SubTopic 10 -Section 45 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=7655603&loc=d3e1278-109256 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 128 -Paragraph 40 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 225 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SX 210.5-03.21) -URI http://asc.fasb.org/extlink&oid=6880815&loc=d3e20235-122688 + Details
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