Net Income Per Share

The following is a reconciliation of the numerators and denominators of the basic and diluted net income per share computations for the periods presented:



	Year Ended
	January 25, 2015		January 26, 2014		January 27, 2013
	(In thousands, except per share data)
Numerator:
Net income	$	630,587	$	439,990	$	562,536
Denominator:
Denominator for basic net income per share, weighted average shares	552,319		587,893		619,324
Effect of dilutive securities:
Stock awards outstanding	10,749		6,624		5,633
Denominator for diluted net income per share, weighted average shares	563,068		594,517		624,957
Net income per share:
Basic	$	1.14	$	0.75	$	0.91
Diluted	$	1.12	$	0.74	$	0.90
Potentially dilutive securities excluded from income per diluted share because their effect would have been anti-dilutive	11,807		25,630		26,784

The denominator for diluted net income per share for fiscal years 2015 and 2014 does not include any effect from the 1.00 % Convertible Senior Notes due 2018, or the Notes. In accordance with ASC 260, Earnings per Share, commencing after the fiscal quarter ending on April 27, 2014, the Notes will not impact the denominator for diluted net income per share unless the average price of our common stock, as calculated under the terms of the Notes, exceeds the conversion price of $20.16 per share. Likewise, the denominator for diluted net income per share will not include any effect from the warrants unless the average price of our common stock, as calculated under the terms of the warrants, exceeds $27.14 per share.

The denominator for diluted net income per share for fiscal years 2015 and 2014 also does not include any effect from the convertible note hedge transaction, or the Note Hedges. In future periods, the denominator for diluted net income per share will exclude any effect of the Note Hedges, as their effect would be anti-dilutive. In the event an actual conversion of any or all of the Notes occurs, the shares that would be delivered to us under the Note Hedges are designed to neutralize the dilutive effect of the shares that we would issue under the Notes. Please refer to Note 11 of these Notes to the Consolidated Financial Statements for discussion regarding the Notes.