Net Income Per Share

3 Months Ended

Apr. 30, 2022

NOTE 13—NET INCOME PER SHARE

The calculation of our net income per share is as follows:


	THREE MONTHS ENDED
	APRIL 30,		MAY 1,
	2022		2021
	(restated)

	(in thousands, except share and per share amounts)
Net income available to common stockholders	$	200,711	$	130,656

Weighted-average shares—basic		22,608,537		21,003,244
Effect of dilutive stock-based awards		4,367,607		6,716,485
Effect of dilutive convertible senior notes⁽¹⁾		831,938		3,490,282
Weighted-average shares—diluted		27,808,082		31,210,011
Basic net income per share	$	8.88	$	6.22
Diluted net income per share	$	7.22	$	4.19

(1)

We adopted ASU 2020-06 in the first quarter of fiscal 2022, and the adoption requires the dilutive impact of the 2023 Notes and 2024 Notes for diluted net income per share purposes to be determined under the if-converted method which assumes share settlement of the entire convertible debt instrument. Prior to adoption of ASU 2020-06, we applied the treasury stock method to determine the dilutive impact of the 2023 Notes and 2024 Notes for diluted net income per share purposes, and the 2023 Notes and the 2024 Notes had an impact on our dilutive share count beginning at stock prices of $193.65 per share and $211.40 per share, respectively.

The warrants associated with the 2023 Notes and 2024 Notes had an impact on our dilutive share count beginning at stock prices of $309.84 per share and $338.24 per share, respectively. The warrants associated with the 2023 Notes and 2024 Notes were repurchased in April 2022 and, as a result, no warrant instruments are outstanding as of April 30, 2022. Accordingly, the warrants have no impact on our dilutive shares post-repurchase. Refer to Note 9—Convertible Senior Notes.

The following number of options and restricted stock units, as well as shares issuable under convertible senior notes prior to extinguishment during the period, were excluded from the calculation of diluted net income per share because their inclusion would have been anti-dilutive:


	THREE MONTHS ENDED
	APRIL 30,	MAY 1,
	2022	2021
	(restated)

	(in thousands)
Options	1,086,549	55,273
Restricted stock units	19,552	—
Convertible senior notes	719,164	—