NET INCOME (LOSS) PER SHARE

3 Months Ended

Mar. 31, 2022

The following table sets forth the computation of basic and diluted net income (loss) per share (in millions, except per share amounts). For the three months ended March 31, 2022, 47 million shares related to the Convertible Notes and an immaterial number of shares related to the Company's restricted stock units and stock warrants were excluded from the denominator because inclusion of such shares would be antidilutive. An immaterial number of shares related to the Company's restricted stock units were excluded from the denominator for the three months ended March 31, 2021, because inclusion of such shares would be antidilutive.


	Three months ended March 31,
	2022			2021
NUMERATOR:
Net income (loss)	$	(278)		$	116



DENOMINATOR:
Weighted-average shares outstanding, basic	592			591
Dilutive effects of Convertible Notes	—		(a)	16		(b)
Dilutive effect of stock warrants	—			1
Dilutive effect of restricted stock units	—			1
Adjusted weighted-average shares outstanding, diluted	592			609

NET INCOME (LOSS) PER SHARE:



Basic	$	(0.47)		$	0.20
Diluted	$	(0.47)		$	0.19

(a) As of January 1, 2022, the Company adopted ASU 2020-06 using the modified retrospective method. The standard requires the Company to apply the if-converted method for purposes of Net income (loss) per share. Using this method, the numerator is affected by adding back interest expense and the denominator is affected by including the effect of potential share settlement, if the effect is more dilutive, regardless of the type of settlement. As a result, the Company will include all shares issuable upon conversion in the denominator if the Company has Net income for the period. For the three months ended March 31, 2022, the Company incurred a Net loss, thus all shares are considered antidilutive and have been excluded from the denominator. See Notes 3 and 11 for further information regarding the new standard and the Convertible Notes.

(b) Prior to the adoption of ASU 2020-06, the Convertible Notes were accounted for using the treasury stock method for the purposes of Net income (loss) per share. For the three months ended March 31, 2021, the average market price of the Company's common stock exceeded the conversion price per share of $38.48 and as such, the common shares underlying the Convertible Notes were included in the diluted calculation.