Net Income Per Share (Tables)

9 Months Ended

Oct. 31, 2015

Computation of basic and diluted net income (loss) per share

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



	Three months ended October 31,					Nine months ended October 31,
	2015		2014			2015		2014
Net income attributable to Mentor Graphics shareholders	$	14,679	$	21,030		$	36,006	$	32,651
Adjustment to redemption value of noncontrolling interest with redemption feature	133		(267		)	258		1,295
Adjusted net income attributable to Mentor Graphics shareholders, basic	14,812		20,763			36,264		33,946
Adjustment for convertible debt interest, net of tax to be forfeited upon conversion of 4.00% Debentures	—		—			519		—
Adjusted net income attributable to Mentor Graphics shareholders, diluted	$	14,812	$	20,763		$	36,783	$	33,946

Weighted average common shares used to calculate basic net income per share	117,759		114,405			116,787		114,399
Employee stock options, restricted stock units, employee stock purchase plan and convertible debt	2,382		2,310			5,176		2,529
Weighted average common and potential common shares used to calculate diluted net income per share	120,141		116,715			121,963		116,928

Net income per share attributable to Mentor Graphics shareholders:
Basic net income per share	$	0.13	$	0.18		$	0.31	$	0.30
Diluted net income per share	$	0.12	$	0.18		$	0.30	$	0.29

We have adjusted the numerator of our basic and diluted earnings per share calculation for the adjustment 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 dilutive for the nine months ended October 31, 2015. 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. We have adjusted the numerator of our diluted earnings per share calculation for the forfeited interest, net of tax, resulting from the assumed conversion.

Adjustments to Net Income excluded from the computation of diluted EPS

The following details adjustments to net income excluded from the computation of diluted net income:



	Three months ended October 31,				Nine months ended October 31,
	2015		2014		2015		2014
Adjustment for convertible debt interest, net of tax to be forfeited upon conversion of 4.00% Debentures	$	519	$	519	$	—	$	519

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]

The following details shares excluded from the computation of diluted net income:



	Three months ended October 31,		Nine months ended October 31,
	2015	2014	2015	2014
Shares of common stock for restricted stock units	—	1,657	—	1,138
Shares of common stock for stock options	—	20	—	51
Shares of common stock for convertible debt	2,695	354	—	476
Total anti-dilutive shares excluded	2,695	2,031	—	1,665

These stock options, restricted stock units, and convertible debt were determined to be anti-dilutive as a result of applying the treasury stock method.