Net Income Per Share

12 Months Ended

Nov. 30, 2011

Net Income Per Share [Abstract]

Net Income Per Share

19.    Net Income Per Share

Basic net income per share is computed by dividing the net income available to common stockholders for the period by the weighted average number of shares of common stock outstanding during the period less shares of common stock subject to repurchase and nonvested stock awards. Diluted net income per share is computed by dividing the net income for the period by the weighted average number of shares of common stock and potential shares of common stock outstanding during the period if their effect is dilutive. Certain potential dilutive securities were not included in computing net income per share because their effect was anti-dilutive.

We use the treasury stock method to calculate the weighted-average shares used in the diluted earnings per share. Under this treasury stock method, the assumed proceeds calculation includes: (a) the actual proceeds to-be-received from the employee upon exercise, (b) the average unrecognized compensation cost during the period and (c) any tax benefits that will be credited upon exercise to additional paid in capital. We determine whether our windfall pool of available excess tax benefits is sufficient to absorb the shortfall. Currently, we have determined that we have sufficient windfall pool available.

Effective December 1, 2009, we adopted new accounting guidance that requires unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) to be included in the computation of net income per share using the two-class method. Our nonvested stock awards issued are not considered participating securities due to their forfeitability.

The following table sets forth the computation of basic and diluted net income per share for the periods indicated (in thousands, except per share data):

	Year Ended November 30,
	2011		2010		2009
Net income attributable to TIBCO Software Inc.	$	112,406	$	78,088	$	62,302
Weighted-average shares of common stock used in computing basic net income per share (excluding unvested restricted stock)		161,469		160,959		168,970
Effect of dilutive common stock equivalents:
Stock options		9,558		7,952		2,548
Stock awards		2,245		2,042		810
Weighted-average shares of common stock used in computing diluted net income per share		173,272		170,953		172,328
Net Income per share attributable to TIBCO Software Inc.:
Basic net income per share	$	0.70	$	0.49	$	0.37
Diluted net income per share	$	0.65	$	0.46	$	0.36

The following potential weighted-average common stock equivalents are not included in the diluted net income per share calculation above, because their effect was anti-dilutive for the periods indicated (in thousands):

	Year Ended November 30,
	2011		2010		2009
Stock options		1,264		4,487		23,882
Stock awards		404		76		1,299
Total anti-dilutive common stock equivalents		1,668		4,563		25,181

In fiscal year 2010, we granted 4.1 million PRSUs that contain performance metrics based on the attainment and maintenance of specified non-GAAP EPS goals. If the performance criteria are achieved, these PRSUs will be considered outstanding for the purpose of computing diluted EPS if the effect is dilutive. Please see Note 15 for additional details. The dilutive impact of these awards will be deferred until the first quarter of fiscal year 2013, at the earliest, when and if the performance criteria of the awards have been met.

Additionally, we granted 0.3 million of PRSUs in the first quarter of fiscal year 2011 that are not included in the diluted net income per share calculation. The dilutive impact of these awards will be deferred until the first quarter of fiscal year 2012 when and if the performance criteria of the awards have been met.