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Net Income (Loss) Per Share
 3 Months Ended
Apr. 30, 2015
Earnings Per Share [Abstract]  
Net Income (Loss) Per Share
Net Loss Per Share

We compute basic net income (loss) per share using the weighted average number of common shares outstanding during the period. We compute diluted net income per share using the weighted average number of common shares and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares consist of common shares issuable upon vesting of restricted stock units, exercise of stock options and ESPP purchase rights, and conversion of the 4.00% Debentures using the treasury stock method, if dilutive.

The following provides the computation of basic and diluted net loss per share:
 
Three months ended April 30,
 
2015
 
2014
Net loss attributable to Mentor Graphics shareholders
$
(9,885
)
 
$
(2,551
)
Adjustment to redemption value of non-controlling interest with redemption feature
269

 
667

Adjusted net loss attributable to Mentor Graphics shareholders
$
(9,616
)
 
$
(1,884
)
Weighted average common shares used to calculate basic net loss per share
116,003

 
114,935

Employee stock options, restricted stock units and employee stock purchase plan
—

 
—

Weighted average common and potential common shares used to calculate diluted net loss per share
116,003

 
114,935

Net loss per share attributable to Mentor Graphics shareholders:
 
 
 
Basic net loss per share
$
(0.08
)
 
$
(0.02
)
Diluted net loss per share
$
(0.08
)
 
$
(0.02
)


We excluded from the computation of diluted net loss per share 2,638 shares of common stock for stock options, restricted stock units and ESPP purchase rights for the three months ended April 30, 2015 and 2,587 shares of common stock for stock options, restricted stock units and ESPP purchase rights for the three months ended April 30, 2014. These stock options, restricted stock units, and ESPP purchase rights were determined to be anti-dilutive because we incurred a net loss for the period.

We have increased the numerator of our basic and diluted earnings per share calculation by $269 for the three months ended April 30, 2015 and $667 for the three months ended April 30, 2014 for the decrease of the noncontrolling interest with redemption feature to its calculated redemption value, 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 loss per share. We assume that the excess of the value of the converted shares over the principal amount of 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 $519 and additional incremental shares of 2,116 for the three months ended April 30, 2015 and additional income of $519 and additional incremental shares of 548 for the three months ended April 30, 2014. The conversion feature of the 4.00% Debentures, which allows for settlement in cash or a combination of cash and common stock, are further described in Note 5. “Notes Payable.”