Net Income Per Share

12 Months Ended

Jan. 31, 2015

Earnings Per Share, Basic and Diluted [Abstract]

Earnings Per Share

Net Income Per Share

The following provides the computation of basic and diluted net income per share:

Year ended January 31,	2015		2014			2013
Net income attributable to Mentor Graphics shareholders	$	147,139	$	155,258		$	138,736
Adjustment to redemption value of non-controlling interest with redemption feature	121		(4,486		)	(5,272		)
Adjusted net income attributable to Mentor Graphics shareholders	$	147,260	$	150,772		$	133,464
Weighted average common shares used to calculate basic net income per share	114,635		113,671			110,998
Employee stock options, restricted stock units and employee stock purchase plan	2,443		3,031			3,019
Weighted average common and potential common shares used to calculate diluted net income per share	117,078		116,702			114,017
Net income per share attributable to Mentor Graphics shareholders:
Basic	$	1.28	$	1.33		$	1.20
Diluted	$	1.26	$	1.29		$	1.17

We excluded from the computation of diluted net income per share stock options, restricted stock units, and ESPP purchase rights representing 919 shares of common stock for fiscal 2015, 1,195 for fiscal 2014, and 1,975 for fiscal 2013. The stock options, restricted stock units, and ESPP purchase rights were determined to be anti-dilutive as a result of applying the treasury stock method.

We have increased the numerator of our basic and diluted earnings per share calculation for the decrease of the noncontrolling interest with redemption feature to its calculated redemption value at January 31, 2015, recorded directly to retained earnings. We have decreased the numerator of our basic and diluted earnings per share calculation for the increase of the noncontrolling interest with redemption feature to its calculated redemption value at January 31, 2014 and January 31, 2013, recorded directly to retained earnings.

The effect of the conversion of the 4.00% Debentures was anti-dilutive and therefore excluded from the computation of diluted net income per share. We assume that the 4.00% Debentures will be settled in common stock for purposes of calculating the dilutive effect on net income per share. If the 4.00% Debentures had been dilutive we would have included additional income of $2,075 for the years ended January 31, 2015, 2014 and 2013. Dilutive net income per share would have included no incremental shares for the years ended January 31, 2015, 2014, or 2013 as the average stock price for the period was below the conversion rate.

The conversion features of the 4.00% Debentures, which allow for settlement in cash, common stock, or a combination of cash and common stock, are further described in Note 7. “Notes Payable.”