NET INCOME PER SHARE

6 Months Ended

Dec. 26, 2021

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, and convertible notes. The following table reconciles the inputs to the basic and diluted computations for net income per share.


	Three Months Ended				Six Months Ended
	December 26, 2021		December 27, 2020		December 26, 2021		December 27, 2020
	(in thousands, except per share data)
Numerator:
Net income	$	1,194,830	$	869,229	$	2,374,574	$	1,692,680
Denominator:
Basic average shares outstanding	140,630		143,830		141,187		144,549
Effect of potential dilutive securities:
Employee stock plans	900		1,293		884		1,202
Convertible notes	—		787		—		828

Diluted average shares outstanding	141,530		145,910		142,071		146,579
Net income per share - basic	$	8.50	$	6.04	$	16.82	$	11.71
Net income per share - diluted	$	8.44	$	5.96	$	16.71	$	11.55

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 impact from potentially dilutive securities, including options and RSUs, was not material for the three and six months ended December 26, 2021 and December 27, 2020.