NET INCOME PER SHARE

3 Months Ended

Sep. 25, 2016

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 using the treasury stock method, for dilutive stock options, RSUs, convertible notes, and warrants. Dilutive shares outstanding include the effect of the convertible notes. Refer to Note 11 for additional information regarding the Company's convertible notes. The following table reconciles the numerators and denominators of the basic and diluted computations for net income per share.



	Three Months Ended
	September 25, 2016		September 27, 2015
	(in thousands, except per share data)
Numerator:
Net income	$	263,835	$	288,679
Denominator:
Basic average shares outstanding	160,607		158,352
Effect of potential dilutive securities:
Employee stock plans	2,142		2,544
Convertible notes	15,220		13,120
Warrants	2,048		358
Diluted average shares outstanding	180,017		174,374
Net income per share - basic	$	1.64	$	1.82
Net income per share - diluted	$	1.47	$	1.66

For purposes of computing diluted net income per share, weighted-average common shares do not include potentially dilutive securities that are anti-dilutive under the treasury stock method. The following potentially dilutive securities were excluded:



	Three Months Ended
	September 25, 2016	September 27, 2015
	(in thousands)
Number of options and RSUs excluded	196	93

Diluted shares outstanding do not include any effect resulting from the note hedges associated with the Company’s 2018 Notes as their impact would have been anti-dilutive.