Net income per common share (Notes)

9 Months Ended

Dec. 31, 2014

Earnings Per Share [Abstract]

Net income per common share

Net Income Per Common Share Attributable to Microchip Technology Stockholders

The following table sets forth the computation of basic and diluted net income per common share attributable to Microchip Technology stockholders (in thousands, except per share amounts):

	Three Months Ended				Nine Months Ended
	December 31,				December 31,
	2014		2013		2014		2013
Net income attributable to Microchip Technology	$	86,057	$	105,401	$	269,607	$	283,786
Weighted average common shares outstanding	201,203		198,759		200,673		197,845
Dilutive effect of stock options and RSUs	3,396		3,834		3,652		3,882
Dilutive effect of convertible debt	18,888		16,496		20,108		14,216
Weighted average common and potential common shares outstanding	223,487		219,089		224,433		215,943
Basic net income per common share attributable to Microchip Technology stockholders	$	0.43	$	0.53	$	1.34	$	1.43
Diluted net income per common share attributable to Microchip Technology stockholders	$	0.39	$	0.48	$	1.20	$	1.31

The Company computed basic earnings per common share attributable to its stockholders using net income available to common stockholders and the weighted average number of common shares outstanding during the period. The Company computed diluted earnings per common share attributable to its stockholders using net income available to stockholders and the weighted average number of common shares outstanding plus potentially dilutive common shares outstanding during the period.

Potentially dilutive common shares from employee equity incentive plans are determined by applying the treasury stock method to the assumed exercise of outstanding stock options and the assumed vesting of outstanding RSUs.

Diluted net income per common share attributable to stockholders for the three and nine months ended December 31, 2014 includes 18,888,013 shares and 20,107,818 shares, respectively, issuable upon the exchange of debentures (see Note 16).  Diluted net income per common share attributable to stockholders for the three and nine months ended December 31, 2013 includes 16,496,384 shares and 14,215,573 shares, respectively, issuable upon the exchange of debentures.  The debentures have no impact on diluted net income per common share unless the average price of the Company's common stock exceeds the conversion price because the principal amount of the debentures will be settled in cash upon conversion.  Prior to conversion, the Company will include, in the diluted net income per common share calculation, the effect of the additional shares that may be issued when the Company's common stock price exceeds the conversion price using the treasury stock method.  The weighted average conversion price per share used in calculating the dilutive effect of the convertible debt for the three and nine-month periods ended December 31, 2014 was $25.39 and $25.57, respectively. The weighted average conversion price per share used in calculating the dilutive effect of the convertible debt for the three and nine-month periods ended December 31, 2013 was $26.19 and $26.43, respectively.

Weighted average common shares exclude the effect of option shares which are not dilutive.  For each of the three and nine months ended December 31, 2014, the number of option shares that were antidilutive was 46,959. There were no antidilutive option shares for the three and nine months ended December 31, 2013.