NET INCOME PER SHARE

9 Months Ended

Mar. 31, 2019

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				Nine Months Ended
	March 31, 2019		March 25, 2018		March 31, 2019		March 25, 2018
	(in thousands, except per share data)
Numerator:
Net income	$	547,390	$	778,800	$	1,649,605	$	1,359,535
Denominator:
Basic average shares outstanding	151,201		162,378		153,891		161,885
Effect of potential dilutive securities:
Employee stock plans	1,413		2,367		1,461		2,546
Convertible notes	5,235		10,279		5,663		13,618
Warrants	—		4,755		668		4,516
Diluted average shares outstanding	157,849		179,779		161,683		182,565
Net income per share - basic	$	3.62	$	4.80	$	10.72	$	8.40
Net income per share - diluted	$	3.47	$	4.33	$	10.20	$	7.45

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		Nine Months Ended
	March 31, 2019	March 25, 2018	March 31, 2019	March 25, 2018
	(in thousands)
Options and RSUs	640	19	717	6

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.