Net Income per Share

12 Months Ended

Jun. 26, 2022

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 inputs to the basic and diluted computations for net income per share.


	Year Ended
	June 26, 2022		June 27, 2021		June 28, 2020
	(in thousands, except per share data)
Numerator:
Net income	$	4,605,286	$	3,908,458	$	2,251,753
Denominator:
Basic average shares outstanding	139,899		143,609		144,814
Effect of potential dilutive securities:
Employee stock plans	729		1,168		1,236
Convertible notes	—		543		3,040

Diluted average shares outstanding	140,628		145,320		149,090
Net income per share - basic	$	32.92	$	27.22	$	15.55
Net income per share - diluted	$	32.75	$	26.90	$	15.10

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 impact from potentially dilutive securities, including options and RSUs, were not material for fiscal years ended June 26, 2022, June 27, 2021, and June 28, 2020.