Net Income Per Share

6 Months Ended

Jul. 27, 2014

Notes to financial statements [Abstract]

Net Income Per Share

Net Income Per Share

The following is a reconciliation of the numerator and denominator of the basic and diluted net income per share computations for the periods presented: 

	Three Months Ended				Six Months Ended
	July 27,		July 28,		July 27,		July 28,
	2014		2013		2014		2013
	(In thousands, except per share data)
Numerator:
Net income	$	127,976	$	96,448	$	264,492	$	174,339
Denominator:
Denominator for basic net income per share, weighted average shares	558,223		585,345		558,657		601,109
Effect of dilutive securities:
Equity awards outstanding	12,349		6,661		11,942		4,942
Denominator for diluted net income per share, weighted average shares	570,572		592,006		570,599		606,051
Net income per share:
Basic net income per share	$	0.23	$	0.16	$	0.47	$	0.29
Diluted net income per share	$	0.22	$	0.16	$	0.46	$	0.29
Potentially dilutive securities excluded from diluted net income per share because their effect would have been anti-dilutive	3,987		17,749		7,928		27,039

The denominator for diluted net income per share for the three and six months ended July 27, 2014 did not include any effect from the 1.00% Convertible Senior Notes due 2018, or the Notes. The calculation of the dilution impact is based on the treasury stock method in accordance with Accounting Standards Codification, or ASC 260, Earnings per Share. Commencing after the fiscal quarter ended on April 27, 2014, the Notes will not impact the denominator for diluted net income per share unless the average price of our common stock, as calculated under the terms of the Notes, exceeds the conversion price of $20.16 per share. Likewise, the denominator for diluted net income per share will not include any effect from the warrants that were issued simultaneously with the Notes unless the average price of our common stock, as calculated under the terms of the warrants, exceeds $27.14 per share. 

The denominator for diluted net income per share for the three and six months ended July 27, 2014 also did not include any effect from the note hedges that were issued simultaneously with the Notes. In future periods, the denominator for diluted net income per share will exclude any effect of the note hedges, unless in the event an actual conversion of any or all of the Notes occurs, the shares that would be delivered to us under the note hedges are designed to neutralize the dilutive effect of the shares that we would issue under the Notes. Please refer to Note 11 of these Notes to Condensed Consolidated Financial Statements for additional discussion regarding the Notes.