NET INCOME PER SHARE

6 Months Ended

Dec. 25, 2016

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, convertible notes, and warrants. Dilutive shares outstanding include the effect of the convertible notes. Refer to Note 11 for additional information regarding the Company's convertible 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 25, 2016		December 27, 2015		December 25, 2016		December 27, 2015
	(in thousands, except per share data)
Numerator:
Net income	$	332,791	$	222,980	$	596,626	$	511,659
Denominator:
Basic average shares outstanding	162,659		158,424		161,633		158,388
Effect of potential dilutive securities:
Employee stock plans	2,243		2,034		2,193		2,289
Convertible notes	16,640		13,363		15,930		13,242
Warrants	2,001		421		2,024		389
Diluted average shares outstanding	183,543		174,242		181,780		174,308
Net income per share - basic	$	2.05	$	1.41	$	3.69	$	3.23
Net income per share - diluted	$	1.81	$	1.28	$	3.28	$	2.94

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 25, 2016	December 27, 2015	December 25, 2016	December 27, 2015
	(in thousands)
Number of options and RSUs excluded	—	79	3	85

Diluted shares outstanding do not include any effect resulting from the note hedges associated with the Company’s 2018 Notes as their impact would have been anti-dilutive.