NET INCOME PER SHARE

3 Months Ended

Sep. 24, 2017

Basic net income per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted net income per share is computed using the treasury stock method, for dilutive stock options, restricted stock units, 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 24, 2017		September 25, 2016
	(in thousands, except per share data)
Numerator:
Net income	$	590,690	$	263,835
Denominator:
Basic average shares outstanding	162,141		160,607
Effect of potential dilutive securities:
Employee stock plans	2,514		2,142
Convertible notes	15,151		15,220
Warrants	4,074		2,048
Diluted average shares outstanding	183,880		180,017
Net income per share - basic	$	3.64	$	1.64
Net income per share - diluted	$	3.21	$	1.47

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 24, 2017	September 25, 2016
	(in thousands)
Number of options and RSUs excluded	7	196

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