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) divide undistributed net income attributable to Greif, Inc. by the average Class A shares outstanding, then (iii) multiply item (i) by item (ii), and finally (iv) add item (iii) to the Class A cash dividend per share. 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) divide undistributed net income attributable to Greif, Inc. by the average Class B shares outstanding, then (iii) multiply item (i) by item (ii), and finally (iv) add item (iii) to the Class B cash dividend per share. Class B diluted EPS is identical to Class B basic EPS.

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


	Three months ended				Six months ended
	April 30,				April 30,
(In millions, except per share data)	2013		2012		2013		2012
Numerator for basic and diluted EPS
Net income attributable to Greif, Inc.	$	40.9	$	39.4	$	65.8	$	61.1
Cash dividends		24.6		24.5		49.0		48.8

Undistributed net income attributable to Greif, Inc.	$	16.3	$	14.9	$	16.8	$	12.3
Denominator for basic EPS
Class A common stock		25.4		25.1		25.4		25.1
Class B common stock		22.1		22.1		22.1		22.1
Denominator for diluted EPS
Class A common stock		25.4		25.3		25.4		25.2
Class B common stock		22.1		22.1		22.1		22.1
EPS Basic
Class A common stock	$	0.70	$	0.68	$	1.13	$	1.05
Class B common stock	$	1.05	$	1.01	$	1.68	$	1.57
EPS Diluted
Class A common stock	$	0.70	$	0.67	$	1.13	$	1.05
Class B common stock	$	1.05	$	1.01	$	1.68	$	1.57
Dividends per share
Class A common stock	$	0.42	$	0.42	$	0.84	$	0.84
Class B common stock	$	0.63	$	0.63	$	1.25	$	1.25

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 the six months ended April 30, 2013, the Company repurchased no shares of Class A or Class B Common Stock. During the six months ended April 30, 2012, the Company repurchased no shares of Class A Common Stock. During the three and six months ended April 30, 2012, the Company repurchased 1,000 shares of Class B Common Stock. As of April 30, 2013, 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 purchased in prior years. The total cost of the shares repurchased from November 1, 2011 through April 30, 2013 was approximately $0.1 million.

The following table summarizes the Company’s Class A and Class B common and treasury shares as of 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
April 30, 2013:
Class A Common Stock		128,000,000		42,281,920		25,424,224		16,857,696
Class B Common Stock		69,120,000		34,560,000		22,119,966		12,440,034

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


	Three months ended				Six months ended
	April 30,				April 30,
	2013		2012		2013		2012
Class A Common Stock:
Basic shares		25,390,486		25,149,691		25,353,441		25,101,280
Assumed conversion of stock options		43,699		141,404		40,962		134,423

Diluted shares		25,434,185		25,291,095		25,394,403		25,235,703

Class B Common Stock:
Basic and diluted shares		22,119,966		22,120,666		22,119,966		22,120,816

No stock options were antidilutive for the three and six month periods ended April 30, 2013 and 2012, respectively.