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, 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				Nine Months Ended
	March 25, 2018		March 26, 2017		March 25, 2018		March 26, 2017
	(in thousands, except per share data)
Numerator:
Net income	$	778,800	$	574,713	$	1,359,535	$	1,171,339
Denominator:
Basic average shares outstanding	162,378		163,408		161,885		162,225
Effect of potential dilutive securities:
Employee stock plans	2,367		2,107		2,546		2,164
Convertible notes	10,279		16,829		13,618		16,230
Warrants	4,755		2,750		4,516		2,266
Diluted average shares outstanding	179,779		185,094		182,565		182,885
Net income per share - basic	$	4.80	$	3.52	$	8.40	$	7.22
Net income per share - diluted	$	4.33	$	3.10	$	7.45	$	6.40

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		Nine Months Ended
	March 25, 2018	March 26, 2017	March 25, 2018	March 26, 2017
	(in thousands)
Options and RSUs	19	28	6	135

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.