NVIDIA 2016 Annual Report Download - page 215

NVIDIA CORPORATION AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
69
Note 3 - 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 31,
2016
January 25,
2015
January 26,
2014
(In millions, except per share data)
Numerator:
Net income............................................................................................ $ 614 $ 631 $ 440
Denominator:
Denominator for basic net income per share, weighted average shares 543 552 588
Effect of dilutive securities:
Equity awards outstanding.................................................................... 13 11 7
Assumed conversion of 1% Convertible Senior Notes Due 2018........ 13——
Denominator for diluted net income per share, weighted average shares 569 563 595
Net income per share:
Basic .............................................................................................. $ 1.13 $ 1.14 $ 0.75
Diluted ........................................................................................... $ 1.08 $ 1.12 $ 0.74
Potentially dilutive securities excluded from income per diluted share
because their effect would have been anti-dilutive............................... 10 12 26
The 1.00% Convertible Senior Notes, or the Notes, are included in the calculation of diluted net income per share if
their inclusion is dilutive. The Notes will generally have a dilutive impact on net income per share if our average stock price
for the reporting period exceeds the adjusted conversion price of $20.1204 per share. For the fiscal year ended January 31,
2016, our average stock price exceeded the conversion price, causing the Notes to have a dilutive impact for this period.
The denominator for diluted net income per share does not include any effect from the convertible note hedge transaction,
or the Note Hedges, that we entered into concurrently with the issuance of the Notes, as its 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.
The denominator for diluted net income per share will not include any effect from the warrants, which we entered into
concurrently with the issuance of the Notes, unless our average stock price for the reporting period exceeds the adjusted
strike price of $27.0851 per share.
Please refer to Note 11 of these Notes to the Consolidated Financial Statements for additional discussion regarding the
Notes.