Advanced Micro Devices, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Earnings (Loss) Per Share

Earnings (Loss) Per Share

12 Months Ended

Dec. 28, 2019

Basic earnings (loss) per share is computed based on the weighted-average number of shares outstanding.

Diluted earnings (loss) per share is computed based on the weighted-average number of shares outstanding plus potentially dilutive shares outstanding during the period. Potentially dilutive shares are determined by applying the treasury stock method to the assumed exercise of outstanding stock options, the assumed vesting of outstanding RSUs, the assumed issuance of common stock under the employee stock purchase plan (ESPP) and the assumed exercise of the warrants. Potentially dilutive shares issuable upon conversion of the 2.125% Convertible Senior Notes due 2026 (2.125% Notes) are calculated using the if-converted method.

The following table sets forth the components of basic and diluted earnings (loss) per share:



	2019		2018		2017
	(In millions, except per share amounts)
Numerator-Net income (loss):
Numerator for basic and diluted earnings per share	341		337		(33		)
Denominator-Weighted average shares:
Denominator for basic earnings per share	1,091		982		952
Effect of potentially dilutive shares:
Employee equity incentive plans and warrants	29		82		—
Denominator for diluted earnings per share	1,120		1,064		952
Earnings (loss) per share:
Basic	$	0.31	$	0.34	$	(0.03	)
Diluted	$	0.30	$	0.32	$	(0.03	)

Potential shares from employee equity incentive plans and the conversion of the 2.125% Notes totaling 93 million and 105 million shares for 2019 and 2018, respectively, and potential shares from employee equity incentive plans, the conversion of the 2.125% Notes and the warrants under the Warrant Agreement totaling 189 million shares for 2017, were not included in the diluted earnings (loss) per share calculation as their inclusion would have been anti-dilutive.