NET (LOSS) INCOME PER SHARE

Basic net (loss) income per share is computed by dividing net (loss) income by the weighted-average number of common shares outstanding during the period. Diluted net (loss) income per share is computed using the treasury stock method, for dilutive stock options, restricted stock units, 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 (loss) income per share.



	Three Months Ended					Six Months Ended
	December 24, 2017			December 25, 2016		December 24, 2017		December 25, 2016
	(in thousands, except per share data)
Numerator:
Net (loss) income	$	(9,955	)	$	332,791	$	580,735	$	596,626
Denominator:
Basic average shares outstanding	161,135			162,659		161,638		161,633
Effect of potential dilutive securities:
Employee stock plans	—			2,243		2,636		2,193
Convertible notes	—			16,640		15,287		15,930
Warrants	—			2,001		4,397		2,024
Diluted average shares outstanding	161,135			183,543		183,958		181,780
Net (loss) income per share - basic	$	(0.06	)	$	2.05	$	3.59	$	3.69
Net (loss) income per share - diluted	$	(0.06	)	$	1.81	$	3.16	$	3.28

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 24, 2017	December 25, 2016	December 24, 2017	December 25, 2016
	(in thousands)
Options and RSUs	7	—	20	3
Employee stock plans	2,757	—	—	—
Convertible notes	15,423	—	—	—
Warrants	4,721	—	—	—

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