AMD 2001 Annual Report Download - page 235

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
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 $428
million, consisting of capital investment grants and interest subsidies. Dresden
Fab 30 is the Company's integrated circuit manufacturing and design facility in
Dresden, Germany. The grants and subsidies are subject to conditions, including
meeting specified levels of employment as of December 2001 and maintaining those
levels until June 2007. As of December 30, 2001, AMD Saxony had received grants
and subsidies totaling approximately $348 million. 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. There have been no conditions of
noncompliance through December 30, 2001 that would result in forfeiture of any
of the grants and subsidies. The grants and subsidies are being recognized as a
reduction of operating expense ratably over the life of the project. In 2001,
grants and subsidies recognized as a reduction to operating expenses amounted to
$57 million. Grants and subsidies received but not yet recognized in operations
as of December 30, 2001, were approximately $206 million.
Advertising Expenses. The Company accounts for advertising costs as expenses in
the period in which they are incurred. Advertising expenses for 2001, 2000 and
1999 were approximately $184 million, $148 million and $101 million,
respectively.
Net Income (Loss) Per Common Share. Basic net income (loss) per common share is
computed using the number of weighted-average common shares outstanding. Diluted
net income (loss) per common share is computed using weighted-average common
shares and weighted-average dilutive potential common shares outstanding.
Source: ADVANCED MICRO DEVIC, 10-K, March 07, 2002