NET INCOME PER SHARE

3 Months Ended

Sep. 27, 2015

NOTE 6 — NET INCOME PER SHARE

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, and convertible notes. Dilutive shares outstanding include the effect of the 2016, 2018, and 2041 Notes. The following table reconciles the numerators and denominators of the basic and diluted computations for net income per share.


	Three Months Ended
	September 27, 2015		September 28, 2014
	(in thousands, except per share data)
Numerator:
Net income	$	288,679	$	141,081

Denominator:
Basic average shares outstanding		158,352		161,685
Effect of potential dilutive securities:
Employee stock plans		2,544		3,560
Convertible notes		13,120		11,867
Warrants		358		6

Diluted average shares outstanding		174,374		177,118

Net income per share - basic	$	1.82	$	0.87

Net income per share - diluted	$	1.66	$	0.80

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
	September 27, 2015		September 28, 2014
	(in thousands)
Number of options and RSUs excluded		93		—

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.