NET INCOME PER SHARE

6 Months Ended

Dec. 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				Six Months Ended
	December 29, 2019		December 23, 2018		December 29, 2019		December 23, 2018
	(in thousands, except per share data)
Numerator:
Net income	$	514,510	$	568,855	$	980,299	$	1,102,215
Denominator:
Basic average shares outstanding	143,987		155,022		144,330		155,340
Effect of potential dilutive securities:
Employee stock plans	1,528		1,435		1,359		1,487
Convertible notes	4,582		5,713		4,700		5,894
Warrants	—		—		—		1,028
Diluted average shares outstanding	150,097		162,170		150,389		163,749
Net income per share - basic	$	3.57	$	3.67	$	6.79	$	7.10
Net income per share - diluted	$	3.43	$	3.51	$	6.52	$	6.73

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 29, 2019	December 23, 2018	December 29, 2019	December 23, 2018
	(in thousands)
Options and RSUs	3	227	4	890