Table:
|  |  | YearEnded |  |
| --- | --- | --- | --- |
|  | June 30, 2019 | June 24, 2018 | June 25, 2017 |
|  |  | (in thousands, except per share data) |  |
| Numerator: |  |  |  |
| Net income | $2,191,430 | $2,380,681 | $1,697,763 |
| Denominator: |  |  |  |
| Basic average shares outstanding | 152,478 | 161,643 | 162,222 |
| Effect of potential dilutive securities: |  |  |  |
| Employee stock plans | 1,323 | 2,312 | 2,058 |
| Convertible notes | 5,610 | 12,258(1) | 16,861(1) |
| Warrants | 504 | 4,569 | 2,629 |
| Diluted average shares outstanding | 159,915 | 180,782 | 183,770 |
| Net income per share-basic | $14.37 | $14.73 | $10.47 |
| Net income per share-diluted | $13.70 | $13.17 | $9.24 |
Paragraphs:
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, and convertible notes.
The following table reconciles the numerators and denominators of the basic and diluted computations for net income per share.
(1) 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.
Question:
What do the diluted shares outstanding not include?