Earnings Per Share (EPS)

9 Months Ended

Jul. 03, 2011

Earnings Per Share ("EPS")

Earnings Per Share ("EPS")

6.             Earnings Per Share (“EPS”)

Basic EPS is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding, less unvested restricted stock for the period.  Diluted EPS is computed by dividing net income by the weighted-average number of common shares outstanding and dilutive potential common shares for the period.  Potential common shares include the weighted-average dilutive effects of outstanding stock options and unvested restricted stock using the treasury stock method.

The following table sets forth the number of weighted-average shares used to compute basic and diluted EPS:

	Three Months Ended				Nine Months Ended
	July 3, 2011		June 27, 2010		July 3, 2011		June 27, 2010
	(in thousands, except per share data)
Net income attributable to Tetra Tech	$	23,839	$	20,639	$	63,639	$	53,678
Weighted-average common shares outstanding – basic		62,203		61,560		61,967		61,380
Effect of dilutive stock options and unvested restricted stock		731		621		778		735
Weighted-average common stock outstanding – diluted		62,934		62,181		62,745		62,115
Earnings per share attributable to Tetra Tech:
Basic	$	0.38	$	0.34	$	1.03	$	0.87
Diluted	$	0.38	$	0.33	$	1.01	$	0.86

For the three and nine months ended July 3, 2011, 2.9 million and 2.7 million options were excluded from the calculation of dilutive potential common shares, compared to 2.1 million and 2.3 million options for the same periods last year, respectively.  These options were not included in the computation of dilutive potential common shares because the assumed proceeds per share exceeded the average market price per share for that period.  Therefore, their inclusion would have been anti-dilutive.