AMD 2011 Annual Report Download - page 83

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Marketing, Communications and Advertising Expenses. Marketing, communications, and advertising
expenses for 2011, 2010 and 2009 were approximately $397 million, $380 million and $313 million,
respectively. Cooperative advertising funding obligations under customer incentive programs are accrued and the
costs are recorded upon agreement with customers and vendor partners. Cooperative advertising expenses are
recorded as marketing, general and administrative expense to the extent the cash paid does not exceed the fair
value of the advertising benefit received. Any excess of cash paid over the fair value of the advertising benefit
received is recorded as a reduction of revenue.
Net Income (Loss) Per Share. Basic net income (loss) attributable to AMD common stockholders per
share is computed based on the weighted average number of common shares outstanding and 35 million common
shares issuable upon exercise of the warrants issued by the Company to West Coast Hitech L.P. (WCH), in
connection with the initial GF transaction in 2009. The warrants became exercisable on July 24, 2009.
Diluted net income attributable to AMD common stockholders per share is computed based on the weighted
average number of common shares outstanding plus any potentially dilutive common shares outstanding.
Potentially dilutive common shares include stock options, restricted stock units and shares issuable upon the
conversion of convertible debt.
The following table sets forth the components of basic and diluted income attributable to AMD common
stockholders per share:
2011 2010 2009
(In millions, except per share amounts)
Numerator—Net income (loss):
Numerator for basic and diluted income (loss) attributable to AMD common
stockholders from continuing operations ............................ $ 495 $471 $307
Numerator for basic and diluted income (loss) attributable to AMD common
stockholders from discontinued operations ........................... $ (4) $— $ (3)
Denominator—Weighted average common shares:
Denominator for basic net income (loss) attributable to AMD common
stockholders per share ........................................... 727 711 673
Effect of potentially dilutive common shares:
Employee stock options and restricted stock units ................... 15 22 5
Denominator for diluted net income (loss) attributable to AMD common
stockholders per share ........................................... 742 733 678
Net income (loss) attributable to AMD common stockholders per common share:
Basic
Continuing operations ............................................. $0.68 $0.66 $0.46
Discontinued operations ........................................... (0.01) — —
Basic net income attributable to AMD common stockholders per share .......... $0.68 $0.66 $0.46
Diluted
Continuing operations ............................................. $0.67 $0.64 $0.45
Discontinued operations ........................................... (0.01) — —
Diluted net income attributable to AMD common stockholders per share ......... $0.66 $0.64 $0.45
Potential common shares (i) from outstanding stock options and restricted stock units totaling approximately
33 million, 17 million and 43 million, and (ii) issuable under the Company’s 5.75% Convertible Senior Notes
due 2012 (5.75% Notes) totaling 24 million, 24 million and 73 million for the years ended December 31, 2011,
December 25, 2010 and December 26, 2009, respectively, were not included in the net income (loss) per share
calculations as their inclusion would have been anti-dilutive.
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