AMD 1997 Annual Report Download - page 88

ADVANCED MICRO DEVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)
For pro forma purposes, the estimated fair value of the Company's stock-
based awards to employees is amortized over the options' vesting period (for
options) and the three-month purchase period (for stock purchases under the
ESPP). The Company's pro forma information follows:
1997 1996 1995
-------- -------- --------
(THOUSANDS EXCEPT
PER SHARE AMOUNTS)
Net income (loss)--as reported................. $(21,090) $(68,950) $216,326
Net income (loss)--pro forma................... (44,304) (89,451) 205,047
Basic net income (loss) per share--as reported. (0.15) (0.51) 1.69
Basic net income (loss) per share--pro forma... (0.32) (0.66) 1.61
Diluted net income (loss) per share--as
reported...................................... (0.15) (0.51) 1.57
Diluted net income (loss) per share--pro forma. (0.32) (0.66) 1.49
Because SFAS 123 is applicable only to awards granted subsequent to December
31, 1994, its pro forma effect will not be fully reflected until approximately
1999. A total of 3,172,820 stock based awards were granted during 1997 with
exercise prices equal to the market price of the stock on the grant date. The
weighted-average exercise price and weighted-average fair value of these
awards were $36.11 and $16.07, respectively. A total of 234,285 stock based
awards were granted during 1997 with exercise prices less than the market
price of the stock on the grant date. The weighted-average exercise price and
weighted-average fair value of these awards were $8.09 and $23.82,
respectively.
The weighted-average fair value of stock purchase rights during 1997 was
$8.42 per share.
13. OTHER EMPLOYEE BENEFIT PLANS
Profit Sharing Program. The Company has a profit sharing program to which
the Board of Directors has authorized semiannual contributions. Profit sharing
contributions were approximately $4 million in 1997 and $45 million in 1995.
There were no profit sharing contributions in 1996.
Retirement Savings Plan. The Company has a retirement savings plan, commonly
known as a 401(k) plan, that allows participating United States employees to
contribute from one percent to 15 percent of their pre-tax salary subject to
I.R.S. limits. The Company makes a matching contribution calculated at 50
cents on each dollar of the first 3 percent of participant contributions, to a
maximum of 1.5 percent of eligible compensation. The Company's contributions
to the 401(k) plan were approximately $5 million, $5 million and $4 million
for 1997, 1996 and 1995, respectively. There are eight investment funds in
which each employee may invest contributions in whole percentage increments.
NexGen had a 401(k) plan which allowed employees to contribute from one
percent to ten percent of their pre-tax salary subject to I.R.S. limits.
NexGen did not match employee contributions.
F-23
Source: ADVANCED MICRO DEVIC, 10-K405, March 03, 1998