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Net Income Per Share
 6 Months Ended
Jul. 31, 2016
Notes to financial statements [Abstract]  
Net Income Per Share
Net Income Per Share

The following is a reconciliation of the numerator and denominator of the basic and diluted net income per share computations for the periods presented:
 
Three Months Ended
 
Six Months Ended
 
July 31,
 
July 26,
 
July 31,
 
July 26,
 
2016
 
2015
 
2016
 
2015
 
(In millions, except per share data)
Numerator:
 
 
 
 
 
 
 
Net income
$
253

 
$
26

 
$
449

 
$
160

Denominator:
 
 
 
 
 
 
 
Basic weighted average shares
534

 
541

 
536

 
545

Dilutive impact of outstanding securities:
 
 
 
 
 
 
 
Equity awards outstanding
23

 
11

 
20

 
13

1% Convertible Senior Notes
43

 
4

 
37

 
5

Warrants issued with the Notes
31

 
—

 
24

 
—

Diluted weighted average shares
631

 
556

 
617

 
563

Net income per share:
 
 
 
 
 
 
 
Basic (1)
$
0.47

 
$
0.05

 
$
0.84

 
$
0.29

Diluted (2)
$
0.40

 
$
0.05

 
$
0.73

 
$
0.28

Equity awards excluded from diluted net income per share because their effect would have been anti-dilutive
—

 
1

 
4

 
4


(1)
Calculated as net income divided by basic weighted average shares.

(2)
Calculated as net income divided by diluted weighted average shares.

The 1.00% Convertible Senior Notes, or the Notes, are included in the calculation of diluted net income per share. The Notes have a dilutive impact on net income per share if our average stock price for the reporting period exceeds the adjusted conversion price of $20.0877 per share. The Warrants outstanding are included in the calculation of diluted net income per share. The Warrants have a dilutive impact on net income per share if our average stock price for the quarter exceeds the adjusted strike price of $27.0411 per share. For the three and six months ended July 31, 2016, our average stock price was $46.57 and $39.69, respectively, which exceeded both the adjusted conversion price and the adjusted strike price, causing the Notes and the Warrants to have a dilutive impact for these periods.

The denominator for diluted net income per share does not include any effect from the convertible note hedge transactions, or the Note Hedges, that we entered into concurrently with the issuance of the Notes, as its effect would be anti-dilutive. In the event of conversion of the Notes, the shares delivered to us under the Note Hedges will offset the dilutive effect of the shares that we would issue under the Notes. Please refer to Note 11 of these Notes to Condensed Consolidated Financial Statements for additional discussion regarding the Notes.