Net Income Per Share

12 Months Ended

Jun. 28, 2015

Note 8: Net Income Per Share

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 (“RSUs”), 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, 2015		June 29, 2014		June 30, 2013
	(in thousands, except per share data)
Numerator:
Net income	$	655,577	$	632,289	$	113,879

Denominator:
Basic average shares outstanding		159,629		164,741		168,932
Effect of potential dilutive securities:
Employee stock plans		3,193		2,864		2,558
Convertible notes		13,530		6,898		1,940
Warrants		715		—		—

Diluted average shares outstanding		177,067		174,503		173,430

Net income per share - basic	$	4.11	$	3.84	$	0.67

Net income per share - diluted	$	3.70	$	3.62	$	0.66

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,
2015

June 29,
2014

June 30,
2013

(in thousands)

Number of options and RSUs excluded

330

534

Diluted shares outstanding include the effect of the Convertible Notes. Diluted shares outstanding do not include any effect resulting from note hedges associated with the Company’s 2016 or 2018 Notes (as described in Note 14) as their impact would have been anti-dilutive.