Net Income per Share

12 Months Ended

Jun. 25, 2023

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.


	Year Ended
	June 25, 2023		June 26, 2022		June 27, 2021
	(in thousands, except per share data)
Numerator:
Net income	$	4,510,931	$	4,605,286	$	3,908,458
Denominator:
Basic average shares outstanding	135,472		139,899		143,609
Effect of potential dilutive securities:
Employee stock plans	362		729		1,168
Convertible notes	—		—		543

Diluted average shares outstanding	135,834		140,628		145,320
Net income per share - basic	$	33.30	$	32.92	$	27.22
Net income per share - diluted	$	33.21	$	32.75	$	26.90

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 fiscal years ended June 25, 2023, June 26, 2022, and June 27, 2021.