Earnings Per Share

12 Months Ended

Sep. 30, 2014

Earnings Per Share

Earnings Per Share

6. Earnings Per Share

Basic earnings per share, is calculated by dividing net earnings by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share, is calculated similarly but includes the potential dilution from the exercise of all outstanding stock options and stock awards, except when the effect would be anti-dilutive.

The following table sets forth the computations of basic and diluted earnings per share (in thousands, except per share data):

	Year ended September 30,
	2014		2013		2012
Net earnings	$	245,993	$	261,151	$	233,064
Total weighted average basic shares		159,933		171,682		183,420
Dilutive securities:
Stock options and stock award programs		3,486		4,477		5,190
Total weighted average diluted shares		163,419		176,159		188,610
Earnings per share:
Basic	$	1.54	$	1.52	$	1.27
Diluted	$	1.51	$	1.48	$	1.24

At September 30, 2014 and 2012, options to purchase 130,952 and 44,340 shares, respectively, of the Company's common stock were outstanding but not included in the computation of diluted earnings per share, since these options were anti-dilutive. Anti-dilutive options are: (a) out-of-the-money options (options the exercise price of which is greater than the average price per share of the Company's common stock during the period), and (b) in-the-money options (options the exercise price of which is less than the average price per share of the Company's common stock during the period) for which the sum of assumed proceeds, including any unrecognized compensation expense related to such options, exceeds the average price per share for the period. At September 30, 2013, all outstanding options to purchase shares of the Company's common stock were dilutive.