AMD 2015 Annual Report Download - page 81

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Diluted net income per share is computed based on the weighted-average number of shares outstanding plus
any potentially dilutive shares outstanding. Potentially dilutive shares include stock options, restricted stock,
restricted stock units and shares issuable upon the conversion of convertible debt.
The following table sets forth the components of basic and diluted loss per share:
2015 2014 2013
(In millions, except per share amounts)
Numerator—Net loss:
Numerator for basic and diluted net loss per share .............. $(660) $ (403) $ (83)
Denominator—Weighted-average shares:
Denominator for basic and diluted net loss per share ............ 783 768 754
Net loss per share:
Basic ...................................................... $(0.84) $(0.53) $(0.11)
Diluted .................................................... $(0.84) $(0.53) $(0.11)
Potential shares from outstanding stock options, restricted stock and restricted stock units totaling
approximately 52 million, 48 million and 59 million for 2015, 2014 and 2013, respectively, were not included in
the net loss per share calculations as their inclusion would have been anti-dilutive.
Accumulated Other Comprehensive Loss. Unrealized holding gains or losses on the Company’s available-
for-sale securities and unrealized holding gains and losses on derivative financial instruments qualifying as cash
flow hedges are included in other comprehensive loss.
The table below summarizes the changes in accumulated other comprehensive loss by component for the
years ended December 26, 2015 and December 27, 2014:
December 26,
2015
December 27,
2014
Unrealized
gains (losses)
on available-
for-sale
securities
Unrealized
gains (losses)
on cash flow
hedges Total
Unrealized
gains (losses)
on available-
for-sale
securities
Unrealized
gains (losses)
on cash flow
hedges Total
(In millions)
Beginning balance ............... $ 1 $ (6) $ (5) $1 $(3) $(2)
Unrealized gains (losses) arising
during the period, net of tax
effects ................... (2) (22) (24) — (9) (9)
Reclassification adjustment for
(gains) losses realized and
included in net loss, net of tax
effects ................... — 21 21 — 6 6
Total other comprehensive income
(loss) ........................ (2) (1) (3) — (3) (3)
Ending balance .................. $ (1) $ (7) $ (8) $1 $(6) $(5)
Stock-Based Compensation. The Company estimates stock-based compensation cost for stock options at
the grant date based on the option’s fair-value as calculated by the lattice-binomial option-pricing model. For
restricted stock and restricted stock units, including performance-based restricted stock units (PRSUs), fair value
is based on the closing price of the Company’s common stock on the grant date. The Company estimates the
grant-date fair value of stock options, restricted stock and restricted stock units that involve a market condition
using a Monte Carlo simulation model. Compensation expense is recognized over the vesting period of the
applicable award using the straight-line method.
75