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Earnings (Loss) Per Share
 9 Months Ended
Sep. 30, 2012
Earnings Per Share [Abstract]  
Earnings (Loss) Per Share
10. 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. For the first eight months of 2011, the Company reported approximately 4.8 million shares issued to Samsung as contingently redeemable common stock (“CRCS”) 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 the first eight months of 2011.
The following table sets forth the computation of basic and diluted loss per share:
 
Three Months Ended September 30,
 
2012
 
2011
 
(In thousands, except per share amounts)
 
CRCS*
 
Other CS**
 
CRCS*
 
Other CS**
Basic net income (loss) per share:
 

 
 

 
 

 
 

Numerator:
 

 
 

 
 

 
 

Allocation of undistributed earnings
$
—

 
$
(58,098
)
 
$
11

 
$
467

Denominator:
 

 
 

 
 

 
 

Weighted-average common shares outstanding
—

 
110,826

 
4,788

 
109,784

Basic net income (loss) per share
$
—

 
$
(0.52
)
 
$
0.00

 
$
0.00

 
 
 
 
 
 
 
 
Diluted net income (loss) per share:
 
 
 
 
 
 
 
Numerator:
 
 
 
 
 
 
 
Allocation of undistributed earnings for basic computation
$
—

 
$
(58,098
)
 
$
11

 
$
467

Reallocation of undistributed earnings
—

 
—

 
—

 
—

Allocation of undistributed earnings for diluted computation
$
—

 
$
(58,098
)
 
$
11

 
$
467

Denominator:
 
 
 
 
 
 
 
Number of shares used in basic computation
—

 
110,826

 
4,788

 
109,784

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

 
—

 
—

 
3,218

Number of shares used in diluted computation
—

 
110,826

 
4,788

 
113,002

Diluted net income (loss) per share
$
—

 
$
(0.52
)
 
$
0.00

 
$
0.00


 
Nine Months Ended September 30,
 
2012
 
2011
 
(In thousands, except per share amounts)
 
CRCS*
 
Other CS**
 
CRCS*
 
Other CS**
Basic and diluted net loss per share:
 

 
 

 
 

 
 

Numerator:
 

 
 

 
 

 
 

Allocation of undistributed earnings
$
—

 
$
(118,204
)
 
$
(526
)
 
$
(13,811
)
Denominator:
 

 
 

 
 

 
 

Weighted-average common shares outstanding
—

 
110,580

 
4,788

 
105,963

Basic and diluted net loss per share
$
—

 
$
(1.07
)
 
$
(0.11
)
 
$
(0.13
)
_________________________________________
*    CRCS — Contingently Redeemable Common Stock
**    Other CS — Common Stock other than CRCS
For the three months ended September 30, 2012 and 2011, options to purchase approximately 13.4 million and 13.1 million shares, respectively, and for the nine months ended September 30, 2012 and 2011, options to purchase approximately 13.3 million and 11.8 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 three months ended September 30, 2012, an additional 6.9 million shares, and for the nine months ended September 30, 2012 and 2011, an additional 7.0 million and 2.5 million shares, respectively, potentially dilutive shares have been excluded from the weighted average dilutive shares because there were net losses for the periods.