NET INCOME PER SHARE

9 Months Ended

Mar. 26, 2017

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				Nine Months Ended
	March 26, 2017		March 27, 2016		March 26, 2017		March 27, 2016
	(in thousands, except per share data)
Numerator:
Net income	$	574,713	$	143,451	$	1,171,339	$	655,110
Denominator:
Basic average shares outstanding	163,408		159,039		162,225		158,605
Effect of potential dilutive securities:
Employee stock plans	2,107		2,046		2,164		2,208
Convertible notes	16,829		12,999		16,230		13,161
Warrants	2,750		289		2,266		355
Diluted average shares outstanding	185,094		174,373		182,885		174,329
Net income per share - basic	$	3.52	$	0.90	$	7.22	$	4.13
Net income per share - diluted	$	3.10	$	0.82	$	6.40	$	3.76

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		Nine Months Ended
	March 26, 2017	March 27, 2016	March 26, 2017	March 27, 2016
	(in thousands)
Number of options and RSUs excluded	28	332	135	287

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.