NET INCOME PER SHARE

3 Months Ended

Sep. 23, 2018

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, convertible notes, and warrants. Dilutive shares outstanding include the effect of the convertible notes. Refer to Note 12 - Long-term Debt and Other Borrowings 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
	September 23, 2018		September 24, 2017
	(in thousands, except per share data)
Numerator:
Net income	$	533,360	$	590,690
Denominator:
Basic average shares outstanding	155,658		162,141
Effect of potential dilutive securities:
Employee stock plans	1,539		2,514
Convertible notes	6,075		15,151
Warrants	2,055		4,074
Diluted average shares outstanding	165,327		183,880
Net income per share - basic	$	3.43	$	3.64
Net income per share - diluted	$	3.23	$	3.21

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
	September 23, 2018	September 24, 2017
	(in thousands)
Options and RSUs	87	7

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.