AMD 2000 Annual Report Download - page 402

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Effect of dilutive securities:
Employee stock options 12,711 - -
Convertible debentures 27,958 - -
Dilutive potential common shares 40,669 - -
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Denominator for diluted income (loss) per common share -
adjusted weighted-average shares 350,000 294,577 287,796
Net income (loss) per common share:
Basic:
Income (loss) before extraordinary item $ 3.25 $ (0.30) $ (0.36)
Extraordinary item; debt retirement $ 0.07 $ - $ -
Net income (loss) $ 3.18 $ (0.30) $ (0.36)
Diluted:
Income (loss) before extraordinary item $ 2.95 $ (0.30) $ (0.36)
Extraordinary item; debt retirement $ 0.06 $ - $ -
Net income (loss) $ 2.89 $ (0.30) $ (0.36)
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Options, restricted stock and convertible debt were outstanding during 2000,
1999 and 1998. Warrants were outstanding in 1998. In 1999 and 1998 all of these
instruments 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.
On August 21, 2000, the Company effected a two-for-one stock split in the form
of a stock dividend of one share of common stock for each share of AMD common
stock held on August 7, 2000. Share and per share amounts have been adjusted for
all prior periods presented to give effect to the stock split.
Accumulated Other Comprehensive Loss. Unrealized gains or losses on the
Company's available-for-sale securities and the foreign currency translation
adjustments, are included in accumulated other comprehensive income (loss).
The following are the components of accumulated other comprehensive loss:
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(Thousands) 2000 1999
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Unrealized gain on investments, net of tax $ 13,143 $ 14,278
Cumulative translation adjustments (107,168) (31,692)
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$ (94,025) $ (17,414)
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Cumulative translation adjustments are not tax-effected.
Employee Stock Plans. The Company uses the intrinsic value method to account for
its stock option plans and its employee stock purchase plan. See Note 10.
Use of Estimates. The preparation of consolidated financial statements in
conformity with accounting principles generally accepted in the United States
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
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Source: ADVANCED MICRO DEVIC, 10-K405, March 20, 2001