Note 9: Net Income (Loss) Per Share

Basic net income (loss) per share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share is computed, using the treasury stock method, as though all potential common shares that are dilutive were outstanding during the period. There are no dilutive shares included during fiscal year 2009 due to the net loss for the period. The following table provides a reconciliation of the numerators and denominators of the basic and diluted computations for net income per share.


	Year Ended
	June 26, 2011		June 27, 2010		June 28, 2009
	(in thousands, except per share data)
Numerator:
Net income (loss)	$	723,748	$	346,669	$	(302,148	)

Denominator:
Basic average shares outstanding		123,529		126,933		125,595
Effect of potential dilutive securities:
Employee stock plans		1,490		1,193		—

Diluted average shares outstanding		125,019		128,126		125,595

Net income (loss) per share — basic	$	5.86	$	2.73	$	(2.41	)

Net income (loss) per share — diluted	$	5.79	$	2.71	$	(2.41	)

For purposes of computing diluted net income (loss) 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 26,
2011

June 27,
2010

June 28,
2009

(in thousands)

Number of options and RSUs excluded

241

577

2,699

Diluted shares outstanding do not include any effect resulting from warrants, assumed conversion of the Notes, or note hedges (as described in Note 13) as their impact would have been anti-dilutive.