Quarterly report pursuant to Section 13 or 15(d)

Net Income (Loss) Per Share

v2.4.0.6
Net Income (Loss) Per Share
 6 Months Ended
Jun. 30, 2012
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 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
 
Six Months Ended
 
 
June 30,
2012
 
July 2,
2011
 
June 30,
2012
 
July 2,
2011
 
 
(In millions, except per share amounts)
Numerator – Net income (loss):
 
 
 
 
 
 
 
 
Numerator for basic income (loss) per share
 
$
37

 
$
61

 
$
(553
)
 
$
571

Effect of assumed conversion of 5.75% convertible senior notes:
 
 
 
 
 
 
 
 
Interest expense and amortization of financing cost
 
—

 
—

 
—

 
15

Numerator for diluted net income (loss) per share
 
$
37

 
$
61

 
$
(553
)
 
$
586

Denominator - Weighted average shares
 
 
 
 
 
 
 
 
Denominator for basic net income (loss) per share
 
739

 
724

 
737

 
722

Effect of potentially dilutive shares:
 
 
 
 
 
 
 
 
Employee stock options and restricted stock units
 
16

 
19

 
—

 
20

5.75% convertible senior notes
 
—

 
—

 


 
24

Denominator for diluted net income (loss) per share
 
755

 
743

 
737

 
766

Net income (loss) per share:
 
 
 
 
 
 
 
 
Basic
 
$
0.05

 
$
0.08

 
$
(0.75
)
 
$
0.79

Diluted
 
$
0.05

 
$
0.08

 
$
(0.75
)
 
$
0.76


Potential shares (i) from outstanding stock options and restricted stock awards totaling approximately 19 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 second quarter of 2012 because their inclusion would have been anti-dilutive.
Potential shares (i) from outstanding stock options and restricted stock awards totaling approximately 18 million and (ii) issuable under the 5.75% Notes totaling 24 million were not included in the net loss per share calculation for the six months ended June 30, 2012 because their inclusion would have been anti-dilutive.
Potential shares (i) from outstanding stock options and restricted stock awards totaling approximately 14 million (ii) issuable under the 5.75% Notes totaling 24 million were not included in the net income per share calculation for the second quarter of 2011 because their inclusion would have been anti-dilutive.
Potential shares from outstanding stock options and restricted stock awards totaling approximately 15 million were not included in the net income per share calculation for the six months ended July 2, 2011 because their inclusion would have been anti-dilutive.