EARNINGS PER SHARE

6 Months Ended

Mar. 29, 2013

EARNINGS PER SHARE

14. EARNINGS PER SHARE

Basic net earnings per share is computed by dividing net earnings by the weighted average number of shares of VMS common stock outstanding for the period. Diluted net earnings per share is computed by dividing net earnings by the sum of the weighted average number of common shares outstanding and dilutive common shares under the treasury stock method.

The following table sets forth the computation of net basic and diluted earnings per share:

	Three Months Ended				Six Months Ended
(In thousands, except per share amounts)	March 29, 2013		March 30, 2012		March 29, 2013		March 30, 2012
Net earnings	$	112,788	$	107,772	$	208,071	$	198,006
Weighted average shares outstanding—basic		108,841		112,354		109,038		112,282
Dilutive effect of potential common shares		1,809		2,159		1,825		2,146
Weighted average shares outstanding—diluted		110,650		114,513		110,863		114,428
Net earnings per share—basic	$	1.04	$	0.96	$	1.91	$	1.76
Net earnings per share—diluted	$	1.02	$	0.94	$	1.88	$	1.73
Anti-dilutive employee shared based awards, excluded		658		744		883		250

The Company excludes potentially dilutive common shares (consisting of shares underlying stock options and the employee stock purchase plan) from the computation of diluted weighted average shares outstanding if the per share value, either the exercise price of the awards or the sum of (a) the exercise price of the awards and (b) the amount of the compensation cost attributed to future services and not yet recognized and (c) the amount of tax benefit or shortfall that would be recorded in additional paid-in capital when the award becomes deductible, is greater than the average market price of the shares, because the inclusion of the shares underlying these stock awards would be antidilutive to earnings per share.