Earnings Per Share

6 Months Ended

Sep. 30, 2011

Basic earnings per common share attributable to PSS World Medical, Inc. is computed by dividing Net income attributable to PSS World Medical, Inc. by the weighted average number of the Company's common shares outstanding during the period. Diluted earnings per common share attributable to PSS World Medical, Inc. is computed by dividing Net income attributable to PSS World Medical, Inc. by the weighted average number of the Company's common shares and common equivalent shares outstanding during the period adjusted for the potential dilutive effect of stock options and restricted stock using the treasury stock method and the potential dilutive effect of outstanding convertible senior notes. Common equivalent shares are excluded from the computation in periods in which they have an anti-dilutive effect.

The following table sets forth computational data for the denominator in the basic and diluted earnings per common share calculation for the three and six months ended September 30, 2011 and October 1, 2010:

		For the Three Months Ended		For the Six Months Ended
		September 30,	October 1,	September 30,	October 1,
(in thousands)		2011	2010	2011	2010
Denominator-weighted average shares outstanding
	used in computing basic earnings per common share	52,309	54,985	53,237	55,539
Assumed conversion of the 2008 Notes		1,177	-	1,898	405
Assumed vesting of restricted stock		400	723	457	758
Assumed exercise of stock options^(a)		70	179	80	203
Denominator-weighted average shares outstanding
	used in computing diluted earnings per common share	53,956	55,887	55,672	56,905

There were no anti-dilutive options outstanding as of September 30, 2011 and October 1, 2010.

The Company included shares underlying its 2008 Notes in its diluted weighted average shares outstanding during the three and six months ended September 30, 2011. Under the treasury stock method of accounting for share dilution, shares that would be issuable upon conversion were included, based upon the amount by which the average stock price for the period exceeded the conversion price of $21.22.

If the price of the Company's common stock exceeds $28.29 per share, additional potential shares that may be issued related to outstanding warrants, using the treasury stock method, will also be included. Prior to conversion, the purchased options are not considered for purposes of the dilutive earnings per share calculation as their effect is considered to be anti-dilutive.