Net Income per Share

12 Months Ended

Jun. 30, 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, and convertible notes.

The following table reconciles the numerators and denominators of the basic and diluted computations for net income per share.



	Year Ended
	June 30, 2019		June 24, 2018			June 25, 2017
	(in thousands, except per share data)
Numerator:
Net income	$	2,191,430	$	2,380,681		$	1,697,763
Denominator:
Basic average shares outstanding	152,478		161,643			162,222
Effect of potential dilutive securities:
Employee stock plans	1,323		2,312			2,058
Convertible notes	5,610		12,258		⁽¹⁾	16,861		⁽¹⁾
Warrants	504		4,569			2,629
Diluted average shares outstanding	159,915		180,782			183,770
Net income per share - basic	$	14.37	$	14.73		$	10.47
Net income per share - diluted	$	13.70	$	13.17		$	9.24


(1)	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.

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:



	Year Ended
	June 30, 2019	June 24, 2018	June 25, 2017
	(in thousands)
Options and RSUs	578	34	34