Earnings Per Share ("EPS")

6 Months Ended

Apr. 02, 2017

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
	April 2, 2017		March 27, 2016		April 2, 2017		March 27, 2016
	(in thousands, except per share data)
Net income attributable to Tetra Tech	$	26,862	$	3,744	$	53,424	26,983
Weighted-average common shares outstanding – basic	57,270		58,451		57,171		58,819
Effect of dilutive stock options and unvested restricted
stock	1,000		680		1,023		708
Weighted-average common stock outstanding – diluted	58,270		59,131		58,194		59,527
Earnings per share attributable to Tetra Tech:
Basic	$	0.47	$	0.06	$	0.93	$	0.46
Diluted	$	0.46	$	0.06	$	0.92	$	0.45

For the three and six months ended April 2, 2017, no options were excluded from the calculation of dilutive potential common shares for both periods, compared to 0.8 million and 0.5 million for the prior-year periods, respectively, because the assumed proceeds per share exceeded the average market price per share during the period.  Therefore, their inclusion would have been anti-dilutive.