Net Income Per Common Share

6 Months Ended

Oct. 01, 2011

Net Income Per Common Share [Abstract]

Net Income Per Common Share

Note 8. 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 includes 3.9 million and 4.6 million potentially dilutive common equivalent shares outstanding for the second quarter and the first six months of fiscal 2012, respectively, that are not included in basic net income per common share. For both the second quarter and the first six months of fiscal 2011, the total shares used in the denominator of the diluted net income per common share calculation includes 3.1 million potentially dilutive common equivalent shares. Potentially dilutive common equivalent shares are determined by applying the treasury stock method to the impact of incremental shares issuable assuming conversion of the debentures, exercise of outstanding stock options, vesting of outstanding RSUs and issuance of common stock under the ESPP.

Outstanding stock options, RSUs and warrants (see “Note 10. Convertible Debentures and Revolving Credit Facility” for more discussion of warrants) to purchase approximately 29.0 million shares for both the second quarter and the first six months of fiscal 2012 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 antidilutive. These options, RSUs and warrants 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, RSUs and warrants.

Diluted net income per common share for all periods, other than the first six months of fiscal 2012, does not include any incremental shares assuming the conversion of $600.0 million principal amount of 2.625% senior convertible debentures due June 15, 2017 (2.625% Debentures) and the 3.125% Debentures (see “Note 10. Convertible Debentures and Revolving Credit Facility”). The debentures will have no impact on diluted net income per common share if the price of the Company’s common stock is below the conversion price of each debenture, because the principal amount of these debentures will be settled in cash upon conversion. Prior to conversion, the Company includes the effect of the additional shares that may be issued upon conversions using the treasury stock method in the diluted net income per common share calculation, provided that the impact was not anti dilutive.

The call options to purchase the Company’s common stock, which the Company purchased to hedge against potential dilution upon conversion of the 2.625% Debentures (see “Note 10. Convertible Debentures and Revolving Credit Facility”), 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.