Quarterly report pursuant to Section 13 or 15(d)

Net Income (Loss) Per Share

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Net Income (Loss) Per Share
 3 Months Ended
Mar. 31, 2012
Net Income (Loss) Per Share [Abstract]  
Net Income (Loss) Per Share

NOTE 6. Net Income (Loss) Per Share

Basic net income (loss) per share is computed based on the weighted average number of shares outstanding and shares issuable upon exercise of warrants issued by the Company to West Coast Hitech L.P., in connection with the initial GF transaction in 2009. The warrants became exercisable on July 24, 2009.

Diluted net income per share is computed based on the weighted average number of shares outstanding plus any potentially dilutive shares outstanding. Potentially dilutive shares include stock options, restricted stock units and shares issuable upon the conversion of convertible debt.

The following table sets forth the components of basic and diluted income (loss) per share:

 

     Quarter Ended  
     March 31,
2012		     April 2,
2011		  
     (In millions, except per share amounts)  

Numerator – Net income (loss):

     

Numerator for basic income (loss) per share

    $ (590 )    $ 510   

Effect of assumed conversion of 5.75% convertible senior notes:

     

Interest expense and amortization of financing cost

      —          7   
  

 

 

    

 

 

  

Numerator for basic and diluted net income (loss) per share

    $ (590 )    $ 517   
  

 

 

    

 

 

  

Denominator – Weighted average shares

     

Denominator for basic and diluted income (loss) per share

      734        720   

Effect of potentially dilutive shares:

     

Employee stock options and restricted stock units

      —          20   

5.75% convertible senior notes

      —          24   
  

 

 

    

 

 

  

Denominator for basic and diluted income (loss) per share

      734        764   
  

 

 

    

 

 

  

Net income per share:

     

Basic

    $ (0.80 )    $ 0.71   

Diluted

    $ (0.80 )    $ 0.68   

Potential shares (i) from outstanding stock options and restricted stock units totaling approximately 32 million and (ii) issuable under the Company's 5.75% Notes totaling 24 million were not included in the net loss per share calculation for the first quarter of 2012 because their inclusion would have been anti-dilutive.

Potential shares from outstanding stock options and restricted stock totaling approximately 15 million were not included in the net income per share calculation for the first quarter of 2011 because the inclusion would have been anti-dilutive.