NET INCOME PER SHARE

3 Months Ended

Sep. 29, 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
	September 29, 2019		September 23, 2018
	(in thousands, except per share data)
Numerator:
Net income	$	465,789	$	533,360
Denominator:
Basic average shares outstanding	144,673		155,658
Effect of potential dilutive securities:
Employee stock plans	1,190		1,539
Convertible notes	4,819		6,075
Warrants	—		2,055
Diluted average shares outstanding	150,682		165,327
Net income per share - basic	$	3.22	$	3.43
Net income per share - diluted	$	3.09	$	3.23

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 29, 2019	September 23, 2018
	(in thousands)
Options and RSUs	155	87