Earnings Per Share ("EPS")

9 Months Ended

Jul. 01, 2012

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				Nine Months Ended
	July 1, 2012		July 3, 2011		July 1, 2012		July 3, 2011
	(in thousands, except per share data)
Net income attributable to Tetra Tech	$	29,054	$	23,839	$	73,948	$	63,639
Weighted-average common shares outstanding – basic	63,387		62,203		63,054		61,967
Effect of dilutive stock options and unvested restricted stock	792		731		698		778
Weighted-average common stock outstanding – diluted	64,179		62,934		63,752		62,745
Earnings per share attributable to Tetra Tech:
Basic	$	0.46	$	0.38	$	1.17	$	1.03
Diluted	$	0.45	$	0.38	$	1.16	$	1.01

For the three and nine months ended July 1, 2012, 2.1 million and 2.9 million options were excluded from the calculation of dilutive potential common shares, respectively, compared to 2.9 million and 2.7 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.