Net Income Per Share

9 Months Ended

Aug. 01, 2015

Net Income per Share

The following table presents the calculation of basic and diluted net income per share (in thousands, except per share amounts):



	Three Months Ended				Nine Months Ended
	August 1, 2015		August 2, 2014		August 1, 2015		August 2, 2014
Basic net income per share
Net income	$	91,667	$	87,352	$	255,974	$	154,552
Weighted-average shares used in computing basic net income per share	417,299		432,448		422,184		436,396
Basic net income per share	$	0.22	$	0.20	$	0.61	$	0.35
Diluted net income per share
Net income	$	91,667	$	87,352	$	255,974	$	154,552
Weighted-average shares used in computing basic net income per share	417,299		432,448		422,184		436,396
Dilutive potential common shares in the form of stock options	1,772		1,616		1,777		2,162
Dilutive potential common shares in the form of other share-based awards	8,447		7,725		9,342		10,038
Weighted-average shares used in computing diluted net income per share	427,518		441,789		433,303		448,596
Diluted net income per share	$	0.21	$	0.20	$	0.59	$	0.34
Antidilutive potential common shares in the form of: ⁽¹⁾
Warrants issued in conjunction with the 2020 Convertible Notes ⁽²⁾	36,125		—		26,453		—
Stock options	1,109		1,651		934		2,050
Other share-based awards	100		1,331		33		1,119


⁽¹⁾	These amounts are excluded from the computation of diluted net income per share.

⁽²⁾

In connection with the issuance of the 2020 Convertible Notes, the Company entered into convertible note hedge and warrant transactions as described in Note 8, “Borrowings.” The 2020 Convertible Notes have no impact on diluted earnings per share until the average quarterly price of the Company’s common stock exceeds the adjusted conversion price of $15.92 per share. If the common stock price exceeds this adjusted conversion price, prior to conversion, the Company will calculate the effect of the additional shares that may be issued using the treasury stock method. If the average price of the Company’s common stock exceeds $20.63 per share for a quarterly period, the Company’s weighted-average shares used in computing diluted net income per share will be impacted by the effect of the additional potential shares that may be issued related to the warrants using the treasury stock method. The convertible note hedge is not considered for purposes of the diluted earnings per share calculation, as its effect would be antidilutive.