AMD 1998 Annual Report Download - page 236

Notes to Consolidated Financial Statements
Options, warrants and restricted stock were outstanding during 1998, 1997 and
1996 but we did not include them in the computation of diluted net loss per
common share because the effect in years with a net loss would be anti-dilutive.
Convertible debt was outstanding during 1998 but we did not include it in the
computation of diluted net loss per common share because the effect in years
with a net loss would be antidilutive.
COMPREHENSIVE LOSS In 1998, we adopted Statement of Financial Accounting
Standards No. 130 (SFAS 130), "Reporting Comprehensive Income." SFAS 130
establishes new rules for the reporting and display of comprehensive loss and
its components; however, the adoption of this Statement had no impact on our net
loss or stockholders' equity. SFAS 130 requires unrealized gains or losses on
our available-for-sale securities and the foreign currency translation
adjustments, which prior to adoption were reported separately in stockholders'
equity, to be included in other comprehensive loss. Prior year financial
statements have been reclassified to conform to the requirements of SFAS 130.
The following are the components of accumulated other comprehensive loss:
December 27, December 28,
(Thousands) 1998 1997
- --------------------------------------------------------------------------------
Unrealized gain on investments $ 6,760 $ 2,007
Cumulative translation adjustments (36,938) (58,907)
-----------------------------
$(30,178) $(56,900)
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Cumulative translation adjustments are not tax affected.
EMPLOYEE STOCK PLANS As allowed under Statement of Financial Accounting
Standards No. 123 (SFAS 123), "Accounting for Stock-Based Compensation," we
continue to account for our stock option plans and our 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" (see Note 10).
USE OF ESTIMATES The preparation of the consolidated financial statements in
conformity with generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results inevitably will differ from those
estimates, and such differences may be material to the financial statements.
FINANCIAL PRESENTATION We have reclassified certain prior year amounts on the
consolidated financial statements to conform to the 1998 presentation.
NEW ACCOUNTING PRONOUNCEMENTS In June 1998, the Financial Accounting Standards
Board issued Statement of Financial Accounting Standards No. 133 (SFAS 133),
"Accounting for Derivative Instruments and Hedging Activities." SFAS 133 is
required to be adopted beginning after June 15, 1999. We expect to adopt SFAS
133 in 2000. We have not completed our review of SFAS 133, and accordingly have
not evaluated the effect the adoption of the Statement may have on our
consolidated results of operations and financial position. SFAS 133 will require
us to recognize all derivatives on the balance sheet at fair value. Derivatives
that are not hedges must be adjusted to fair value through income. If the
derivative is a hedge, depending on the nature of the hedge, changes in the fair
value of derivatives will either be offset against the change in fair value of
the hedged assets, liabilities, or firm commitments through earnings or
recognized in other comprehensive income until the hedged item is recognized in
earnings. The ineffective portion of a derivative's change in fair value will
be immediately recognized in earnings.
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Source: ADVANCED MICRO DEVIC, 10-K, March 29, 1999