Net Income Per Share

The following is a reconciliation of the denominator of the basic and diluted net income per share computations for the periods presented:



	Three Months Ended				Six Months Ended
	July 29,		July 30,		July 29,		July 30,
	2018		2017		2018		2017
	(In millions, except per share data)
Numerator:
Net income	$	1,101	$	583	$	2,345	$	1,091
Denominator:
Basic weighted average shares	607		597		607		595
Dilutive impact of outstanding securities:
Equity awards	18		26		19		26
1.00% Convertible Senior Notes	1		4		1		9
Warrants issued with the 1.00% Convertible Senior Notes	—		6		—		7
Diluted weighted average shares	626		633		627		637
Net income per share:
Basic (1)	$	1.81	$	0.98	$	3.86	$	1.83
Diluted (2)	$	1.76	$	0.92	$	3.74	$	1.71
Equity awards excluded from diluted net income per share because their effect would have been anti-dilutive	—		—		1		1


(1)	Calculated as net income divided by basic weighted average shares.


(2)	Calculated as net income divided by diluted weighted average shares.

The 1.00% Convertible Senior Notes Due 2018, or the Convertible Notes, are included in the calculation of diluted net income per share. The Convertible Notes have a dilutive impact on net income per share if our average stock price for the reporting period exceeds the adjusted conversion price of $20.02 per share. The warrants associated with our Convertible Notes, or the Warrants, outstanding are also included in the calculation of diluted net income per share. As of July 29, 2018, there were no warrants outstanding.

Refer to Note 12 of these Notes to Condensed Consolidated Financial Statements for additional discussion regarding the Convertible Notes and Note Hedges.