NET INCOME PER SHARE

6 Months Ended

Dec. 27, 2015

Basic net income per share is computed by dividing net income by the weighted-average number of shares of Common Stock outstanding during the period. Diluted net income per share is computed using the treasury stock method, for dilutive stock options, RSUs, convertible notes, and warrants. Dilutive shares outstanding include the effect of the convertible notes. Refer to Note 11 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 27, 2015		December 28, 2014		December 27, 2015		December 28, 2014
	(in thousands, except per share data)
Numerator:
Net income	$	222,980	$	176,940	$	511,659	$	318,021
Denominator:
Basic average shares outstanding	158,424		159,248		158,388		160,467
Effect of potential dilutive securities:
Employee stock plans	2,034		3,304		2,289		3,432
Convertible notes	13,363		13,744		13,242		12,805
Warrants	421		750		389		378
Diluted average shares outstanding	174,242		177,046		174,308		177,082
Net income per share - basic	$	1.41	$	1.11	$	3.23	$	1.98
Net income per share - diluted	$	1.28	$	1.00	$	2.94	$	1.80

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 27, 2015	December 28, 2014	December 27, 2015	December 28, 2014
	(in thousands)
Number of options and RSUs excluded	79	—	85	—

Diluted shares outstanding do not include any effect resulting from the note hedges associated with the Company’s 2016 or 2018 Notes as their impact would have been anti-dilutive.