AMD 2000 Annual Report Download - page 401

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
distributor is terminated and such products have not yet been sold by other
distributors. Accordingly, the Company defers recognition of revenue and related
profits from sales to distributors with agreements that have the aforementioned
terms until the merchandise is resold by the distributors.
Foreign Grants and Subsidies. The Federal Republic of Germany and the State of
Saxony have agreed to support the Dresden Fab 30 project in the amount of $427
million (denominated in deutsche marks) consisting of capital investment grants
and interest subsidies. Dresden Fab 30 is the Company's new integrated circuit
manufacturing and design facility in Dresden, Germany. The grants and subsidies
are subject to conditions, including meeting specified levels of employment in
December 2001 and maintaining those levels until June 2007. The grants and
subsidies will be recognized as a reduction of operating expense ratably over
the life of the project. In 2000, grants and subsidies recognized as a reduction
to operating expenses amounted to $35 million. As of December 31, 2000, AMD
Saxony had received grants and subsidies totaling approximately $322 million
(denominated in deutsche marks). Noncompliance with the conditions of the grants
and subsidies could result in the forfeiture of all or a portion of the future
amounts to be received, as well as the repayment, of all or a portion of the
amounts received to date.
Advertising Expenses. The Company accounts for advertising costs as expense in
the period in which they are incurred. Advertising expense for 2000, 1999 and
1998 was approximately $148 million, $101 million and $74 million, respectively.
Net Income (Loss) Per Common Share. Basic and diluted net income (loss) per
share are computed using weighted-average common shares outstanding.
The following table sets forth the computation of basic and diluted net income
(loss) per common share:
----------------------------------------------------------------------------------------------------------
(Thousands except per share data) 2000 1999 1998
----------------------------------------------------------------------------------------------------------
Numerator:
Numerator for basic income (loss) per common share before
extraordinary item $ 1,006,070 $(88,936) $ (103,960)
Numerator for basic extraordinary loss per common share 23,044 - -
-------------------------------------------
Numerator for basic income (loss) per common share $ 983,026 $(88,936) $ (103,960)
Numerator for basic income (loss) per common share before
extraordinary item $ 1,006,070 $(88,936) $ (103,960)
Effect of adding back interest expense associated with
convertible debentures 27,507 - -
-------------------------------------------
Numerator for diluted income (loss) per common share before
extraordinary item $ 1,033,127 $(88,936) $ (103,960)
Numerator for diluted extraordinary loss per common share 23,044 - -
-------------------------------------------
Numerator for diluted income (loss) per common share $ 1,010,083 $(88,936) $ (103,960)
Denominator:
Denominator for basic income (loss) per common share -
weighted-average shares 309,331 294,577 287,796
-34-
Source: ADVANCED MICRO DEVIC, 10-K405, March 20, 2001