NET INCOME PER SHARE

Basic net income per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding, plus the dilutive effects of stock options, RSUs, and ESPP. Potentially dilutive shares of common stock are determined by applying the treasury stock method.

A reconciliation of the numerator and denominator used in the calculation of basic and diluted net income per share is as follows ($ and share amounts in 000’s, except per share amounts):



	Fiscal Year
	2013	2012	2011
Numerator:
Net income	44,273	66,836	62,492

Denominator:
Basic shares:
Weighted-average common stock outstanding-basic	162,435	158,074	152,581
Diluted shares:
Weighted-average common stock outstanding-basic	162,435	158,074	152,581
Effect of potentially dilutive securities:
Stock options	5,685	8,214	11,200
RSUs	35	—	—
ESPP	28	41	—
Weighted-average shares used to compute diluted net income per share	168,183	166,329	163,781
Net income per share:
Basic	0.27	0.42	0.41
Diluted	0.26	0.40	0.38

The following weighted-average shares of common stock were excluded from the computation of diluted net income per share for the periods presented, as their effect would have been antidilutive (in 000’s):



	Fiscal Year
	2013	2012	2011
Stock options	7,397	7,183	3,893
RSUs	2,774	291	—
ESPP	419	321	122
	10,590	7,795	4,015