NET INCOME (LOSS) PER SHARE

6 Months Ended

Jun. 30, 2021

The following table sets forth the computation of basic and diluted net income (loss) per share (in millions, except per share amounts). An immaterial number of shares related to the Company's restricted stock units and stock warrants were excluded from the denominator for the three and six months ended June 30, 2020, because inclusion of such shares would be antidilutive.


	Three months ended June 30,				Six months ended June 30,
	2021		2020		2021		2020
NUMERATOR:
Net income (loss)	$	348	$	(915)	$	463	$	(1,009)

DENOMINATOR:
Weighted-average shares outstanding, basic	591		563		591		539
Dilutive effects of convertible notes (a)	22		—		19		—
Dilutive effect of stock warrants	1		—		1		—
Dilutive effect of restricted stock units	1		—		1		—
Adjusted weighted-average shares outstanding, diluted	615		563		612		539

NET INCOME (LOSS) PER SHARE:
Basic	$	0.59	$	(1.63)	$	0.78	$	(1.87)
Diluted	$	0.57	$	(1.63)	$	0.76	$	(1.87)

(a) Because the Company intends to settle conversions by paying cash up to the principal amount of the convertible notes, with any excess conversion value settled in shares of common stock, the convertible notes are being accounted for using the treasury stock method for the purposes of Net income (loss) per share. Using this method, the denominator will be affected when the average share price of the Company's common stock for a given period is greater than the conversion price of approximately $38.48 per share, and the Company reports Net income for the given period. For the three and six months ended June 30, 2021, the average market price of the Company's common stock exceeded this conversion price per share and as such, the common shares underlying the convertible notes were included in the diluted calculation. The convertible notes stipulated that holders of the notes could not elect to convert their convertible notes to shares of common stock until after June 30, 2020, subject to certain terms contained therein, and therefore there was no dilutive impact related to the notes until July 1, 2020. See Note 8 for further information on the convertible notes.