Quarterly report pursuant to Section 13 or 15(d)

Earnings (Loss) Per Share

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Earnings (Loss) Per Share
 3 Months Ended
Mar. 31, 2018
Earnings Per Share [Abstract]  
Earnings (Loss) Per Share
Earnings (Loss) Per Share
Basic earnings (loss) per share is computed based on the weighted average number of shares outstanding.
Diluted earnings (loss) per share is computed based on the weighted average number of shares outstanding plus potentially dilutive shares outstanding during the period. Potentially dilutive shares are determined by applying the treasury stock method to the assumed exercise of outstanding stock options, the assumed vesting of outstanding RSUs, and the assumed exercise of the warrant under the warrant agreement (the Warrant Agreement) with West Coast Hitech L.P. (WCH). Potentially dilutive shares issuable upon conversion of the 2.125% Convertible Senior Notes due 2026 (2.125% Notes) are calculated using the if-converted method.
The following table sets forth the components of basic and diluted earnings (loss) per share:
 
Three Months Ended
 
March 31,
2018
 
April 1,
2017
 
(In millions, except per share amounts)
Numerator – Net income (loss):
 
 
 
Numerator for basic and diluted earnings (loss) per share
$
81

 
$
(33
)
Denominator - Weighted average shares
 
 
 
Denominator for basic earnings (loss) per share
968

 
939

Effect of potentially dilutive shares:
 
 
 
Employee stock options and restricted stock units
34

 
—

Warrants
37

 
—

Denominator for diluted earnings (loss) per share
1,039

 
939

Earnings (loss) per share:
 
 
 
Basic
$
0.08

 
$
(0.04
)
Diluted
$
0.08

 
$
(0.04
)

Potential shares from certain employee stock options, restricted stock units and the conversion of the 2.125% Notes totaling 103 million for the first quarter of 2018 and potential shares from certain employee stock options, restricted stock units, the conversion of the 2.125% Notes and the warrants under the Warrant Agreement totaling 195 million for the first quarter of 2017 were not included in the earnings (loss) per share calculations because their inclusion would have been anti-dilutive.