Earnings Per Share

9 Months Ended

Jun. 30, 2011

Earnings Per Share

Earnings Per Share

Note 3. Earnings per share

Basic earnings per share attributable to Woodward is computed by dividing net earnings available to common stockholders by the weighted average number of shares of common stock outstanding for the period.

Diluted earnings per share attributable to Woodward reflects the weighted average number of shares outstanding after the assumed conversion of all dilutive securities.

The following is a reconciliation of net earnings to net earnings per share — basic and net earnings per share — diluted:

	Three-Months Ending				Nine-Months Ending
	June 30,				June 30,
	2011		2010		2011		2010
Numerator:
Net earnings attributable to Woodward	$	36,056	$	31,745	$	90,545	$	78,169
Denominator:
Basic shares outstanding		68,793		68,489		68,785		68,428
Dilutive effect of employee stock options		1,373		1,498		1,370		1,443
Diluted shares outstanding		70,166		69,987		70,155		69,871
Income per common share:
Basic earnings per share attribuable to Woodward	$	0.52	$	0.46	$	1.32	$	1.14
Diluted earnings per share attributable to Woodward	$	0.51	$	0.45	$	1.29	$	1.12

The following stock option grants were outstanding during the three and nine-months ending June 30, 2011 and 2010, but were excluded from the computation of diluted earnings per share because their inclusion would have been anti-dilutive:

	Three-Months Ending				Nine-Months Ending
	June 30,				June 30,
	2011		2010		2011		2010
Options		678		430		679		447
Weighted-average option price	$	32.06	$	32.58	$	32.03	$	32.49

The weighted-average shares of common stock outstanding for basic and diluted earnings per share included weighted-average treasury stock shares held for deferred compensation obligations of the following:

	Three-Months Ending				Nine-Months Ending
	June 30,				June 30,
	2011		2010		2011		2010
Weighted average treasury stock shares held for deferred compensation obligation		324		361		340		375