Net Income per Share

12 Months Ended

Jun. 28, 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, 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 28, 2020		June 30, 2019		June 24, 2018
	(in thousands, except per share data)
Numerator:
Net income	$	2,251,753	$	2,191,430	$	2,380,681
Denominator:
Basic average shares outstanding	144,814		152,478		161,643
Effect of potential dilutive securities:
Employee stock plans	1,236		1,323		2,312
Convertible notes	3,040		5,610		12,258		⁽¹⁾
Warrants	—		504		4,569
Diluted average shares outstanding	149,090		159,915		180,782
Net income per share - basic	$	15.55	$	14.37	$	14.73
Net income per share - diluted	$	15.10	$	13.70	$	13.17


(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 28, 2020	June 30, 2019	June 24, 2018
	(in thousands)
Options and RSUs	206	578	34