Quarterly report pursuant to Section 13 or 15(d)

Net Income (Loss) Per Share

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Net Income (Loss) Per Share
 9 Months Ended
Oct. 01, 2011
Net Income (Loss) Per Share [Abstract]  
Net Income (Loss) Per Share

NOTE 4. 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     Nine Months Ended  
    October 1,
2011		     September 25,
2010		     October 1,
2011		     September 25,
2010		  
    (In millions, except per share amounts)  

Numerator – Net income (loss):

        

Numerator for basic and diluted income (loss) per share

   $ 97      $ (118 )    $ 668      $ 96   
 

 

 

    

 

 

    

 

 

    

 

 

  

Denominator - Weighted average shares

        

Denominator for basic net income (loss) per share

     729        713        725        710   

Effect of potentially dilutive shares:

        

Employee stock options and restricted stock units

     12        —          17        22   
 

 

 

    

 

 

    

 

 

    

 

 

  

Denominator for diluted net income (loss) per share

     741        713        742        732   
 

 

 

    

 

 

    

 

 

    

 

 

  

Net income (loss) per share:

        

Basic

   $ 0.13      $ (0.17 )    $ 0.92      $ 0.13   

Diluted

   $ 0.13      $ (0.17 )    $ 0.90      $ 0.13   

Potential shares (i) from outstanding stock options and restricted stock units totaling approximately 53 million and (ii) issuable under the Company's 5.75% Convertible Senior Notes due 2012 (5.75% Notes) totaling 24 million were not included in the net income per share calculation for the third quarter of 2011 because their inclusion would have been anti-dilutive.

Potential shares (i) from outstanding stock options and restricted stock units totaling approximately 27 million and (ii) issuable under the Company's 5.75% Notes totaling 24 million were not included in the net income per share calculation for the nine months ended October 1, 2011 because their inclusion would have been anti-dilutive.

Potential shares (i) from outstanding stock options and restricted stock units totaling approximately 65 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 third quarter of 2010 because their inclusion would have been anti-dilutive.

Potential shares (i) from outstanding stock options and restricted stock units totaling approximately 21 million and (ii) issuable under the Company's 5.75% Notes totaling 24 million were not included in the net income per share calculation for the nine months ended September 25, 2010 because their inclusion would have been anti-dilutive.