Citrix 2014 Annual Report Download - page 107

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CITRIX SYSTEMS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F-39
15. EARNINGS PER SHARE
The following table sets forth the computation of basic and diluted net income per share (in thousands, except per share
information):
Year Ended December 31,
2014 2013 2012
Numerator:
Net income $ 251,723 $ 339,523 $ 352,547
Denominator:
Denominator for basic earnings per share - weighted-average shares
outstanding 169,879 186,672 186,722
Effect of dilutive employee stock awards:
Employee stock awards 1,391 1,573 2,407
Denominator for diluted earnings per share - weighted-average shares
outstanding 171,270 188,245 189,129
Basic earnings per share $ 1.48 $ 1.82 $ 1.89
Diluted earnings per share $ 1.47 $ 1.80 $ 1.86
Anti-dilutive weighted-average shares 3,026 3,647 3,464
The weighted-average number of shares outstanding used in the computation of basic and diluted earnings per share does
not include the effect of the potential outstanding common stock from the Company's Convertible Notes and Warrants. The
effects of these potentially outstanding shares were not included in the calculation of diluted earnings per share because the
effect would have been anti-dilutive.
The Company uses the treasury stock method for calculating any potential dilutive effect of the conversion spread on its
Convertible Notes on diluted earnings per share, if applicable, as upon conversion, the Company will pay cash up to the
aggregate principal amount of the Convertible Notes to be converted and pay or deliver, as the case may be, cash, shares of
common stock or a combination of cash and shares of common stock, at the Company’s election, in respect of the remainder, if
any, of the Company’s conversion obligation in excess of the aggregate principal amount of the Convertible Notes being
converted. The conversion spread will have a dilutive impact on diluted earnings per share when the average market price of
the Company’s common shares for a given period exceeds the conversion price of $90.00 per share. For the year ended
December 31, 2014, the Convertible Notes have been excluded from the computation of diluted earnings per share as the effect
would be anti-dilutive since the conversion price of the Convertible Notes exceeded the average market price of the Company’s
common stock. In addition, the Company uses the treasury stock method for calculating any potential dilutive effect related to
the warrants. See Note 12 to the Company's consolidated financial statements for detailed information on the Convertible Notes
offering.