Income (Loss) Per Share

6 Months Ended

Jul. 01, 2016

INCOME (LOSS) PER SHARE

The following table sets forth the computation of the basic and diluted net loss per share (in thousands, except per share amounts):



	Three months ended						Six months ended
	July 1, 2016			July 3, 2015			July 1, 2016			July 3, 2015
Numerator:
Net loss	$	(20,679	)	$	(994	)	$	(45,859	)	$	(3,651	)
Denominator:
Weighted average number of common shares outstanding
Basic and diluted	77,342			88,426			77,168			88,541
Net loss per share:
Basic and diluted	$	(0.27	)	$	(0.01	)	$	(0.59	)	$	(0.04	)

The diluted net loss per share is the same as basic net loss per share for the three and six months ended July 1, 2016 and July 3, 2015 because potential common shares are only considered when their effect would be dilutive. The following table sets forth the potential weighted common shares outstanding that were excluded from the computation of basic and diluted net loss per share calculations (in thousands):



	Three months ended		Six months ended
	July 1, 2016	July 3, 2015	July 1, 2016	July 3, 2015
Stock options	5,428	6,840	5,488	6,964
RSUs	2,247	2,462	2,010	2,256
Stock purchase rights under the ESPP	652	449	355	476
Total	8,327	9,751	7,853	9,696

Also excluded from the table above are the Notes, which are convertible under certain conditions into an aggregate of 22,304,348 shares of common stock. (See Note 11, “Convertible Notes, Other Debts and Capital Leases” for additional information on the Notes). Since the Company’s intent is to settle the principal amount of the Notes in cash, the treasury stock method is being used to calculate any potential dilutive effect of the conversion spread on diluted net income per share, if applicable. The conversion spread will have a dilutive impact on diluted net income per share when the Company’s average market price of its common stock for a given period exceeds the conversion price of $5.75 per share.