Net Income Per Common Share

6 Months Ended

Sep. 28, 2013

Earnings Per Share [Abstract]

Net Income Per Common Share

Net Income Per Common Share

The computation of basic net income per common share for all periods presented is derived from the information on the condensed consolidated statements of income, and there are no reconciling items in the numerator used to compute diluted net income per common share.

The total shares used in the denominator of the diluted net income per common share calculation included 15.5 million and 13.3 million potentially dilutive common equivalent shares outstanding for the second quarter and the first six months of fiscal 2014, respectively, that are not included in basic net income per common share by applying the treasury stock method to the impact of incremental shares issuable assuming conversion of the debentures (see "Note 10. Convertible Debentures and Revolving Credit Facility"). For the second quarter and the first six months of fiscal 2013, the total shares used in the denominator of the diluted net income per common share calculation included 5.5 million and 5.8 million, respectively, that are not included in basic net income per common share by applying the treasury stock method to the impact of incremental shares issuable assuming conversion of the debentures.

Additionally, the total shares used in the denominator of the diluted net income per common share calculation includes 6.7 million and 5.6 million potentially dilutive common equivalent shares outstanding for the second quarter and the first six months of fiscal 2014, respectively, that are not included in basic net income per common share. For the second quarter and the first six months of fiscal 2013, the total shares used in the denominator of the diluted net income per common share calculation included 4.1 million and 4.3 million potentially dilutive common equivalent shares, respectively. Potentially dilutive common equivalent shares are determined by applying the treasury stock method to the impact of incremental shares issuable assuming exercise of outstanding stock options and warrants, vesting of outstanding RSUs and issuance of common stock under the ESPP.

Outstanding stock options and RSUs to purchase approximately 1.4 million and 3.7 million shares for the second quarter and for the first six months of fiscal 2014, respectively, under the Company’s stock award plans were excluded from diluted net income per common share by applying the treasury stock method, as their inclusion would have been anti-dilutive. These options and RSUs could be dilutive in the future if the Company’s average share price increases and is greater than the combined exercise prices and the unamortized fair values of these options and RSUs.

To hedge against potential dilution upon conversion of the 2.625% Debentures, the Company also purchased call options on its common stock from the hedge counterparties. The call options give the Company the right to purchase up to 20.0 million shares of its common stock at $29.97 per share. These call options are not considered for purposes of calculating the total shares outstanding under the basic and diluted net income per share, as their effect would be anti-dilutive. Upon exercise, the call options would serve to neutralize the dilutive effect of the 2.625% Debentures and potentially reduce the weighted number of diluted shares used in per share calculations.