Earnings Per Share ("EPS")

9 Months Ended

Jun. 28, 2015

8.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
	June 28, 2015		June 29, 2014		June 28, 2015		June 29, 2014
	(in thousands, except per share data)

Net income attributable to Tetra Tech	$	26,206	$	26,657	$	70,798	$	85,680


Weighted-average common shares outstanding – basic	60,207		64,566		61,293		64,683
Effect of dilutive stock options and unvested restricted stock	585		736		594		810

Weighted-average common stock outstanding – diluted	60,792		65,302		61,887		65,493


Earnings per share attributable to Tetra Tech:
Basic	$	0.44	$	0.41	$	1.16	$	1.32

Diluted	$	0.43	$	0.41	$	1.14	$	1.31

For the three and nine months ended June 28, 2015, 1.1 million and 1.3 million options were excluded from the calculation of dilutive potential common shares, respectively, compared to 0.7 million and no 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 during the period. Therefore, their inclusion would have been anti-dilutive.