Earnings Per Share ("EPS")

6 Months Ended

Mar. 29, 2015

Earnings Per Share ("EPS")

Earnings Per Share ("EPS")

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				Six Months Ended
	March 29, 2015		March 30, 2014		March 29, 2015		March 30, 2014
	(in thousands, except per share data)
Net income attributable to Tetra Tech	$	19,017	$	31,709	$	44,592	$	59,023
Weighted-average common shares outstanding – basic	61,153		64,835		61,816		64,670
Effect of dilutive stock options and unvested restricted stock	570		875		615		847
Weighted-average common stock outstanding – diluted	61,723		65,710		62,431		65,517
Earnings per share attributable to Tetra Tech:
Basic	$	0.31	$	0.49	$	0.72	$	0.91
Diluted	$	0.31	$	0.48	$	0.71	$	0.90

For both three and six months ended March 29, 2015, 1.3 million options were excluded from the calculation of dilutive potential common shares, compared to 0.3 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.