NET INCOME PER SHARE

6 Months Ended

Dec. 28, 2014

NET INCOME PER SHARE

NOTE 10 — 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 the effect of the 2016, 2018 and 2041 Notes. The following table reconciles the numerators and denominators of the basic and diluted computations for net income per share.

	Three Months Ended				Six Months Ended
	December 28, 2014		December 29, 2013		December 28, 2014		December 29, 2013
	(in thousands, except per share data)
Numerator:
Net income	$	176,940	$	148,992	$	318,021	$	234,498
Denominator:
Basic average shares outstanding		159,248		162,305		160,467		162,603
Effect of potential dilutive securities:
Employee stock plans		3,304		2,847		3,432		2,869
Convertible notes		13,744		6,605		12,805		6,120
Warrants		750		—		378		—
Diluted average shares outstanding		177,046		171,757		177,082		171,592
Net income per share - basic	$	1.11	$	0.92	$	1.98	$	1.44
Net income per share - diluted	$	1.00	$	0.87	$	1.80	$	1.37

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				Six Months Ended
	December 28, 2014		December 29, 2013		December 28, 2014		December 29, 2013
	(in thousands)
Number of potential dilutive securities excluded		—		—		—		296

Diluted shares outstanding do not include any effect resulting from the note hedges associated with the Company’s 2016 or 2018 Notes (as described in Note 12) as their impact would have been anti-dilutive.