AMD 1997 Annual Report Download - page 74

ADVANCED MICRO DEVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)
Net Income (Loss) Per Common Share. In February 1997, the Financial
Accounting Standards Board issued Statement of Financial Accounting Standards
No. 128 (SFAS 128), "Earnings per Share." SFAS 128 supersedes Accounting
Principles Board Opinion No. 15 (APB 15), "Earnings per Share," and other
related Interpretations and is effective for the periods ending after December
15, 1997. Under SFAS 128, all prior-period earnings per share amounts have
been restated. Basic earnings per share is based upon weighted-average common
shares outstanding. Diluted earnings per share is computed using the weighted-
average common shares outstanding plus any potentially dilutive securities.
Dilutive securities include stock options, warrants, restricted stock,
convertible debt and convertible preferred stock.
The following table sets forth the computation of basic and diluted net
income (loss) per common share:
1997 1996 1995
----------- ----------- -----------
(THOUSANDS EXCEPT PER SHARE DATA)
Numerator:
Net income (loss).................... $ (21,090) $ (68,950) $ 216,326
Preferred stock dividends............ -- -- (10)
---------- ---------- -----------
Numerator for basic and diluted net
income (loss) per common share...... $ (21,090) $ (68,950) $ 216,316
---------- ---------- -----------
Denominator:
Denominator for basic net income
(loss) per common share--weighted-
average shares...................... 140,453 135,126 127,680
Effect of dilutive securities:
Employee stock options.............. -- -- 6,231
Warrants............................ -- -- 2,233
Convertible preferred stock......... -- -- 1,343
Other dilutive securities........... -- -- 211
---------- ---------- -----------
Dilutive potential common shares..... -- -- 10,018
Denominator for diluted net income
(loss) per common share--adjusted
weighted-average shares and assumed
conversions......................... 140,453 135,126 137,698
========== ========== ===========
Basic net income (loss) per common
share................................ $ (0.15) $ (0.51) $ 1.69
========== ========== ===========
Diluted net income (loss) per common
share................................ $ (0.15) $ (0.51) $ 1.57
========== ========== ===========
For additional disclosures regarding the warrants, the employee stock
options and the restricted stock, see Notes 7 and 12.
Options, warrants and restricted stock were outstanding during 1997 and
1996, but were not included in the computation of diluted net loss per common
share because the effect in years with a net loss would be antidilutive.
Options to purchase 1,970,000 shares of common stock at a weighted-average
price of $30.18 per share were outstanding during 1995, but were not included
in the computation of diluted net income per common share because the options'
exercise price was greater than the average market price of the common shares
and, therefore, the effect would be antidilutive.
Employee Stock Plans. The Company accounts for its stock option plans and
its employee stock purchase plan in accordance with provisions of the
Accounting Principles Board's Opinion No. 25 (APB 25), "Accounting For Stock
Issued to Employees." In 1995, the Financial Accounting Standards Board
released the Statement of
F-9
Source: ADVANCED MICRO DEVIC, 10-K405, March 03, 1998