Net Income (Loss) Per Share

12 Months Ended

Dec. 31, 2023

Net income (loss) per share

The computation of basic net income (loss) per share is based on the weighted-average number of our common shares outstanding during the period. The computation of diluted net income (loss) per share is based on the weighted-average number of our common shares and dilutive potential common shares, which primarily include shares that may be issued under our stock option, restricted stock award, and Employee Stock Purchase Plans ("ESPP") (collectively, "dilutive securities") as determined under the treasury stock method.

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


	Year Ended December 31,
	2023		2022		2021
Net income (loss) (Numerator):
Net income (loss)	$	(307)	$	(267)	$	53
Weighted-average shares (Denominator):
Outstanding	74.0		72.0		70.3
Less: Subject to vesting	—		—		(1.0)
Weighted-average shares for basic EPS	74.0		72.0		69.3
Effect of dilutive securities	—		—		4.7
Weighted-average shares for diluted EPS	74.0		72.0		74.0

Net income (loss) per share
Basic	$	(4.15)	$	(3.71)	$	0.76
Diluted	$	(4.15)	$	(3.71)	$	0.71

The following table summarizes potentially dilutive securities excluded from the computation of diluted net income (loss) per share calculations because they would have been antidilutive (in millions):


	At December 31,
	2023	2022	2021
Common stock options issued and outstanding	13.5	12.0	4.5
Restricted stock units issued	1.5	1.3	—
Employee Stock Purchase Plan shares	0.3	0.2	0.1
Total potential dilutive securities	15.3	13.5	4.6

We have also excluded the effect of Gilead's right to purchase additional shares of our common stock from the calculation as these rights had no intrinsic value at December 31, 2023, 2022 or 2021.