Quarterly report pursuant to Section 13 or 15(d)

Earnings (Loss) Per Share

v3.10.0.1
Earnings (Loss) Per Share
 6 Months Ended
Jun. 30, 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
 
Six Months Ended
 
June 30,
2018
 
July 1,
2017
 
June 30,
2018
 
July 1,
2017
 
(In millions, except per share amounts)
Numerator – Net income (loss):
 
 
 
 
 
 
 
Numerator for basic earnings (loss) per share
$
116

 
$
(42
)
 
$
197

 
$
(75
)
Effect of assumed conversion of Convertible Notes 2026:
 
 
 
 
 
 
 
              Unamortized debt issuance cost
11

 
—

 
—

 
—

Numerator for diluted earnings (loss) per share
$
127

 
$
(42
)
 
$
197

 
$
(75
)
Denominator - Weighted average shares:
 
 
 
 
 
 
 
Denominator for basic earnings (loss) per share
972

 
945

 
970

 
942

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

 
—

 
34

 
—

Warrants
40

 
—

 
39

 
—

Convertible Notes 2026
101

 
—

 
—

 
—

Denominator for diluted earnings (loss) per share
1,147

 
945

 
1,043

 
942

Earnings (loss) per share:
 
 
 
 
 
 
 
Basic
$
0.12

 
$
(0.04
)
 
$
0.20

 
$
(0.08
)
Diluted
$
0.11

 
$
(0.04
)
 
$
0.19

 
$
(0.08
)

Potential shares from certain employee stock options and restricted stock units totaling 2 million for the second quarter of 2018 were not included in the earnings (loss) per share calculation 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 second quarter of 2017 were not included in the earnings (loss) per share calculation because their inclusion would have been anti-dilutive.
Potential shares from certain employee stock options, restricted stock units and the conversion of the 2.125% Notes totaling 103 million for the six months ended June 30, 2018 were not included in the earnings (loss) per share calculation 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 196 million for the six months ended July 1, 2017 were not included in the earnings (loss) per share calculation because their inclusion would have been anti-dilutive.