Earnings Per Share

9 Months Ended

Jun. 30, 2015

Note 3. Earnings per share

Basic earnings per share 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 reflects the weighted-average number of shares outstanding after consideration of the dilutive effect of stock options and restricted stock.

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



	Three-Months Ended				Nine-Months Ended
	June 30,				June 30,
	2015		2014		2015		2014
Numerator:
Net earnings	$	43,753	$	46,001	$	131,392	$	114,182
Denominator:
Basic shares outstanding		64,781		65,845		65,088		66,736
Dilutive effect of stock options and restricted stock		1,446		1,302		1,416		1,294
Diluted shares outstanding		66,227		67,147		66,504		68,030
Income per common share:
Basic earnings per share	$	0.68	$	0.70	$	2.02	$	1.71
Diluted earnings per share	$	0.66	$	0.69	$	1.98	$	1.68

On June 2, 2015, Woodward entered into an accelerated share repurchase agreement (the “ASR Agreement”) with Goldman, Sachs & Co. (“Goldman”) under which Woodward repurchased shares of its common stock for an aggregate purchase price of $125,000. Upon execution of the ASR Agreement, Goldman initially delivered to Woodward 2,048 shares of common stock. The number of shares of common stock to be ultimately repurchased by Woodward under the ASR program, which is expected to be completed before December 31, 2015, will be based generally on the average daily volume-weighted average price of Woodward stock during the term of the ASR Agreement. The 2,048 shares of common stock delivered by Goldman to Woodward upon execution of the ASR Agreement are reflected in the calculation of basic shares outstanding used in the calculation of earnings per share.

The following stock option grants were outstanding during the three and nine-months ended June 30, 2015 and 2014, but were excluded from the computation of diluted earnings per share because their inclusion would have been anti-dilutive:



	Three-Months Ended				Nine-Months Ended
	June 30,				June 30,
	2015		2014		2015		2014
Options		-		677		699		236
Weighted-average option price	$	n/a	$	40.99	$	46.55	$	41.05

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



	Three-Months Ended				Nine-Months Ended
	June 30,				June 30,
	2015		2014		2015		2014
Weighted-average treasury stock shares held for deferred compensation obligations		182		206		194		220