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Earnings per Share
3 Months Ended
Sep. 30, 2011
Earnings Per Share [Abstract] 
Earnings Per Share
Earnings per Share

Basic earnings per share ("EPS") in computed based on the weighted-average number of shares of common stock outstanding during the period. Diluted EPS is computed based on the weighted-average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options, warrants, non-vested restricted stock awards and units, and non-vested performance stock units that have been earned.

The following table sets forth the computations of basic and diluted EPS for the three months ended September 30, 2011 and September 24, 2010:
 
Three Months Ended
 
September 30,
2011
 
September 24,
2010
Net income applicable to TRC Companies, Inc.
$
18,688

 
$
2,704

Accretion charges on preferred stock
—

 
(3,799
)
Net income (loss) applicable to TRC Companies, Inc.'s common shareholders
$
18,688

 
$
(1,095
)
 
 
 
 
Basic weighted-average common shares outstanding
27,472

 
19,684

Effect of dilutive stock options and restricted stock
920

 
—

Diluted weighted-average common shares outstanding
28,392

 
19,684

 
 
 
 
Earnings (loss) per common share applicable to TRC Companies, Inc.'s common shareholders:
 
 
 
Basic earnings (loss) per common share
$
0.68

 
$
(0.06
)
Diluted earnings (loss) per common share
$
0.66

 
$
(0.06
)
Anti-dilutive stock options, warrants RSA's, RSU's, and PSU's excluded from the calculation
2,005

 
3,392


For the three months ended September 24, 2010, the Company reported a net loss applicable to common shareholders; therefore, the potentially dilutive shares were anti-dilutive and were excluded from the calculation of diluted loss per share in accordance with ASC Topic 260, Earnings Per Share. The holders of the convertible preferred stock did not have a contractual obligation to share in the net losses of the Company, and, as such, the undistributed net losses for the three months ended September 24, 2010 were not allocated to the convertible preferred stock. Because the effects were anti-dilutive, 7 preferred shares were excluded from the calculation of diluted EPS for the three months ended September 24, 2010 (prior to conversion on December 1, 2010).