NET INCOME PER SHARE

9 Months Ended

Mar. 29, 2020

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 29, 2020		March 31, 2019		March 29, 2020		March 31, 2019
	(in thousands, except per share data)
Numerator:
Net income	$	574,781	$	547,390	$	1,555,080	$	1,649,605
Denominator:
Basic average shares outstanding	145,301		151,201		144,654		153,891
Effect of potential dilutive securities:
Employee stock plans	1,453		1,413		1,390		1,461
Convertible notes	1,411		5,235		3,604		5,663
Warrants	—		—		—		668
Diluted average shares outstanding	148,165		157,849		149,648		161,683
Net income per share - basic	$	3.96	$	3.62	$	10.75	$	10.72
Net income per share - diluted	$	3.88	$	3.47	$	10.39	$	10.20

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 29, 2020	March 31, 2019	March 29, 2020	March 31, 2019
	(in thousands)
Options and RSUs	40	640	13	717