Net Income Per Share From Continuing Operations

12 Months Ended

Apr. 03, 2016

Net Income Per Share From Continuing Operations

Basic net income per share is computed using the weighted-average number of common shares outstanding during the period. Diluted net income per share is computed using the weighted-average number of common and dilutive potential common shares outstanding during the period. Potential common shares include employee stock options and restricted stock units. For purposes of computing diluted net income per share, weighted-average potential common shares do not include potential common shares that are anti-dilutive under the treasury stock method.

The following table sets forth the computation of basic and diluted net income per share from continuing operations:



	Fiscal Year Ended
(in thousands, except per share amounts)	April 3, 2016		March 29, 2015		March 30, 2014
Numerator (basic and diluted):
Net income from continuing operations	$	195,299	$	114,581	$	111,313

Denominator:
Weighted average common shares outstanding, basic	142,783		148,714		149,480
Dilutive effect of employee stock options, restricted stock units and performance stock units	4,869		5,269		3,889
Weighted average common shares outstanding, diluted	147,652		153,983		153,369

Basic net income per share from continuing operations	$	1.37	$	0.77	$	0.74
Diluted net income per share from continuing operations	$	1.32	$	0.74	$	0.73

Potential dilutive common shares of 0.4 million, 11 thousand and 1.5 million pertaining to employee stock options, restricted stock and performance stock units were excluded from the calculation of diluted earnings per share for the fiscal years ended April 3, 2016, March 29, 2015 and March 30, 2014, respectively, because the effect would have been anti-dilutive.

The denominator for diluted net income per share for the fiscal 2016 does not include any effect from the 0.875% Convertible Senior Notes due 2022, or the Convertible Notes. In accordance with ASC 260, Earnings per Share, the Convertible 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 $33.45 per share. Likewise, the denominator for diluted net income per share will not include any effect from the warrants unless the average price of our common stock, as calculated under the terms of the warrants, exceeds $48.66 per share.

The denominator for diluted net income per share for the fiscal 2016 also does not include any effect from the convertible note hedge transaction, or the Note Hedges. In future periods, the denominator for diluted net income per share will exclude any effect of the Note Hedges, as their effect would be anti-dilutive. In the event an actual conversion of any or all of the Convertible Notes occurs, the shares that will be delivered to us under the Note Hedges are designed to neutralize the dilutive effect of the shares that the Company will issue under the Convertible Notes. Refer to Note 17 for further discussion regarding the Convertible Notes.