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Earnings (Loss) Per Share
 12 Months Ended
Dec. 31, 2011
Earnings (Loss) Per Share  
Earnings (Loss) Per Share

13. Earnings (Loss) Per Share

        Basic earnings (loss) per share is calculated by dividing the net income (loss) by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share is calculated by dividing the earnings (loss) by the weighted average number of common shares and potentially dilutive securities outstanding during the period. Potentially dilutive common shares consist of incremental common shares issuable upon exercise of stock options, employee stock purchases, restricted stock and restricted stock units and shares issuable upon the conversion of convertible notes. The dilutive effect of outstanding shares is reflected in diluted earnings per share by application of the treasury stock method. This method includes consideration of the amounts to be paid by the employees, the amount of excess tax benefits that would be recognized in equity if the instrument was exercised and the amount of unrecognized stock-based compensation related to future services. No potential dilutive common shares are included in the computation of any diluted per share amount when a net loss is reported. As discussed in Note 4, "Settlement Agreement with Samsung," the Company reported approximately 4.8 million shares issued to Samsung as contingently redeemable common stock due to the contractual put rights associated with those shares. As such, the Company used the two-class method for reporting earnings per share for those periods where the contingently redeemable common stock were outstanding (during 2010 until August 2011).

        The following table sets forth the computation of basic and diluted income (loss) per share:

 
   Years Ended December 31,  
 
   2011   2010   2009  
 
   (In thousands, except per share amounts)
  
 
   CRCS*   Other CS**   CRCS*   Other CS**   CRCS*   Other CS**  

Basic net income (loss) per share:

                                      

Numerator:

                                      

Allocation of undistributed earnings

   $ (1,180 ) $ (41,873 ) $ 6,109   $ 144,808   $ —   $ (92,186 )

Denominator:

                                      

Weighted-average common shares outstanding

     4,788     107,024     4,552     107,904     —     105,011  
                           

Basic net income (loss) per share

   $ (0.25 ) $ (0.39 ) $ 1.34   $ 1.34   $ —   $ (0.88 )
                           

Diluted net income (loss) per share:

                                      

Numerator:

                                      

Allocation of undistributed earnings for basic computation

   $ (1,180 ) $ (41,873 ) $ 6,109   $ 144,808   $ —   $ (92,186 )

Reallocation of undistributed earnings

     —     —     (181 )   181     —     —  
                           

Allocation of undistributed earnings for diluted computation

   $ (1,180 ) $ (41,873 ) $ 5,928   $ 144,989   $ —   $ (92,186 )
                           

Denominator:

                                      

Number of shares used in basic computation

     4,788     107,024     4,552     107,904     —     105,011  

Dilutive potential shares from stock options, ESPP, convertible notes, CRI retention bonuses and nonvested equity stock and stock units

     —     —     —     3,428     —     —  
                           

Number of shares used in diluted computation

     4,788     107,024     4,552     111,332     —     105,011  
                           

Diluted net income (loss) per share

   $ (0.25 ) $ (0.39 ) $ 1.30   $ 1.30   $ —   $ (0.88 )
                           
*
CRCS—Contingently Redeemable Common Stock

**
Other CS—Common Stock other than CRCS

        For the years ended December 31, 2011, 2010 and 2009, options to purchase approximately 12.0 million, 6.4 million and 11.0 million shares, respectively, were excluded from the calculation because they were anti-dilutive after considering proceeds from exercise, taxes and related unrecognized stock-based compensation expense. For the years ended December 31, 2011 and 2009, an additional 4.1 million and 1.4 million potentially dilutive shares, respectively, have been excluded from the weighted average dilutive shares because there was a net loss for the period.