NET INCOME PER SHARE

9 Months Ended

Mar. 30, 2014

NET INCOME PER SHARE

NOTE 11 — NET INCOME PER SHARE

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, and convertible notes. Dilutive shares outstanding include only the effect of the 2041 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 30,		March 31,		March 30,		March 31,
	2014		2013		2014		2013
	(in thousands, except per share data)
Numerator:
Net income	$	164,396	$	18,996	$	398,894	$	28,172
Denominator:
Basic average shares outstanding		162,238		163,034		161,904		171,016
Effect of potential dilutive securities:
Employee stock plans		2,641		2,729		2,810		2,390
Convertible notes		6,757		2,741		6,337		900
Diluted average shares outstanding		171,636		168,504		171,051		174,306
Net income per share - basic	$	1.01	$	0.12	$	2.46	$	0.16
Net income per share - diluted	$	0.96	$	0.11	$	2.33	$	0.16

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 30,		March 31,		March 30,		March 31,
	2014		2013		2014		2013
	(in thousands)
Number of potential dilutive securities excluded		75		298		85		567

Diluted shares outstanding do not include any effect resulting from warrants, assumed conversion of the notes, or note hedges associated with the Company’s 2016 or 2018 Notes (as described in Note 13) as their impact would have been anti-dilutive.