Net Income Per Share

3 Months Ended

Dec. 24, 2011

Net Income Per Share [Abstract]

Net Income Per Share

(9) Net Income Per Share

Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding. Diluted net income per share is computed by dividing net income by the weighted average number of common shares outstanding plus the dilutive effect of potential common shares from outstanding stock options, restricted stock units, the employee stock purchase plan, and convertible debt determined by applying the treasury stock method. In accordance with ASC 718, Stock Compensation, the assumed proceeds under the treasury stock method include the average unrecognized compensation expense of stock options that are in-the-money and restricted stock units.

The Company applies the provisions of ASC 260, Earnings per Share, Subtopic 10-45-44, to determine the diluted weighted average shares outstanding as it relates to its outstanding Convertible Notes, and due to the type of debt instrument issued, the Company uses the treasury stock method and not the if-converted method. The dilutive impact of the Company's Convertible Notes is based on the difference between the Company's current period average stock price and the conversion price of the Convertible Notes, provided there is a premium. Pursuant to this accounting standard, there is no dilution from the accreted principal of the Convertible Notes.

A reconciliation of basic and diluted share amounts is as follows:

	Three Months Ended
	December 24, 2011		December 25, 2010
Numerator:
Net income	$	20,812	$	10,940
Denominator:
Basic weighted average common shares outstanding		262,717		259,624
Weighted average common stock equivalents from assumed exercise of stock options and restricted stock units		2,241		3,522
Diluted weighted average common shares outstanding		264,958		263,146
Basic net income per common share	$	0.08	$	0.04
Diluted net income per common share	$	0.08	$	0.04
Weighted-average anti-dilutive shares related to:
Outstanding stock options		10,827		9,376
Restricted stock units		1,588		1

Diluted weighted average shares outstanding do not include any effect resulting from the assumed conversion of the Company's Convertible Notes as their impact would be anti-dilutive for all periods presented. As of December 24, 2011, upon conversion, including the potential premium that could be payable on a fundamental change, the Company would issue a maximum of approximately 68.6 million common shares to the Convertible Note holders. In those reporting periods in which the Company has reported net income, anti-dilutive shares comprise those common stock equivalents that have either an exercise price above the average stock price for the quarter or the common stock equivalents related average unrecognized stock compensation expense is sufficient to "buy back" the entire amount of shares.