Net Income Per Share

12 Months Ended

Jun. 29, 2014

Net Income Per Share

Note 9: Net Income Per Share

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 (“RSUs”), and convertible notes. The following table reconciles the numerators and denominators of the basic and diluted computations for net income per share.

	Year Ended
	June 29, 2014		June 30, 2013		June 24, 2012
	(in thousands, except per share data)
Numerator:
Net income	$	632,289	$	113,879	$	168,723
Denominator:
Basic average shares outstanding		164,741		168,932		124,176
Effect of potential dilutive securities:
Employee stock plans		2,864		2,558		910
Convertible notes		6,898		1,940		147
Diluted average shares outstanding		174,503		173,430		125,233
Net income per share - basic	$	3.84	$	0.67	$	1.36
Net income per share - diluted	$	3.62	$	0.66	$	1.35

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:

	Year Ended
	June 29, 2014		June 30, 2013		June 24, 2012
	(in thousands)
Number of options and RSUs excluded		78		534		382

Diluted shares outstanding include only the effect of the 2041 Notes. 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.