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
Sep. 30, 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
 
Nine Months Ended
 
September 30,
2017
 
September 24,
2016
 
September 30,
2017
 
September 24,
2016
 
(In millions, except per share amounts)
Numerator – Net income (loss):
 
 
 
 
 
 
 
Numerator for basic and diluted net income (loss) per share
$
71

 
$
(406
)
 
$
(18
)
 
$
(446
)
Denominator - Weighted average shares
 
 
 
 
 
 
 
Denominator for basic net income (loss) per share
957

 
815

 
947

 
801

Effect of potentially dilutive shares:
 
 
 
 
 
 
 
Employee stock options and restricted stock units
44

 
—

 
—

 
—

Warrants
41

 
—

 
—

 
—

Denominator for diluted net income (loss) per share
1,042

 
815

 
947

 
801

Net income (loss) per share:
 
 
 
 
 
 
 
Basic
$
0.07

 
$
(0.50
)
 
$
(0.02
)
 
$
(0.56
)
Diluted
$
0.07

 
$
(0.50
)
 
$
(0.02
)
 
$
(0.56
)

Potential shares from certain employee stock options, restricted stock units and the conversion of the 2.125% Notes totaling 102 million for the third quarter of 2017 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 144 million for the third 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 certain employee stock options, restricted stock units, the conversion of the 2.125% Notes and the warrants under the Warrant Agreement totaling 193 million for the nine months ended September 30, 2017 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 217 million for the nine months ended September 24, 2016 were not included in the net loss per share calculations because their inclusion would have been anti-dilutive.