Quarterly report pursuant to Section 13 or 15(d)

Net Income (Loss) Per Share

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Net Income (Loss) Per Share
 6 Months Ended
Jul. 01, 2017
Earnings Per Share [Abstract]  
Net Income (Loss) Per Share
Net Income (Loss) Per Share
Basic net income (loss) per share is computed based on the weighted average number of shares outstanding.
Diluted net income (loss) 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, shares issuable upon conversion of the 2.125% Notes and the exercise of the warrant under the Warrant Agreement.
The following table sets forth the components of basic and diluted net income (loss) per share:
 
Three Months Ended
 
Six Months Ended
 
July 1,
2017
 
June 25,
2016
 
July 1,
2017
 
June 25,
2016
 
(In millions, except per share amounts)
Numerator – Net income (loss):
 
 
 
 
 
 
 
Numerator for basic and diluted net income (loss) per share
$
(16
)
 
$
69

 
$
(89
)
 
$
(40
)
Denominator - Weighted average shares
 
 
 
 
 
 
 
Denominator for basic net income (loss) per share
945

 
794

 
942

 
794

Effect of potentially dilutive shares:
 
 
 
 
 
 
 
Employee stock options and restricted stock units
—

 
27

 
—

 
—

Denominator for diluted net income (loss) per share
945

 
821

 
942

 
794

Net income (loss) per share:
 
 
 
 
 
 
 
Basic
$
(0.02
)
 
$
0.09

 
$
(0.09
)
 
$
(0.05
)
Diluted
$
(0.02
)
 
$
0.08

 
$
(0.09
)
 
$
(0.05
)

Potential shares from stock options, restricted stock units, the 2.125% Notes and the warrants under the Warrant Agreement totaling 193 million for the second quarter of 2017 and potential shares from stock options and restricted stock units totaling 19 million for the second quarter of 2016 were not included in the net income (loss) per share calculations because their inclusion would have been anti-dilutive.
Potential shares from stock options, restricted stock units, the 2.125% Notes and the warrants under the Warrant Agreement totaling 196 million for the six months ended July 1, 2017 and potential shares from stock options and restricted stock units totaling 41 million for the six months ended June 25, 2016 were not included in the net loss per share calculations because their inclusion would have been anti-dilutive.