Earnings Per Share ("EPS")

6 Months Ended

Mar. 31, 2013

Earnings Per Share ("EPS")

Earnings Per Share ("EPS")

7. 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				Six Months Ended
	March 31, 2013		April 1, 2012		March 31, 2013		April 1, 2012
	(in thousands, except per share data)
Net income attributable to Tetra Tech	$	24,820	$	22,284	$	51,043	$	44,894
Weighted-average common shares outstanding – basic	64,551		63,072		64,376		62,846
Effect of dilutive stock options and unvested restricted stock	921		745		832		651
Weighted-average common stock outstanding – diluted	65,472		63,817		65,208		63,497
Earnings per share attributable to Tetra Tech:
Basic	$	0.38	$	0.35	$	0.79	$	0.71
Diluted	$	0.38	$	0.35	$	0.78	$	0.71

For the three and six months ended March 31, 2013, 0.4 million and 0.6 million options were excluded from the calculation of dilutive potential common shares, respectively, compared to 2.4 million and 3.0 million options for the same periods last year. 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.