Advanced Micro Devices, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share

Earnings Per Share

3 Months Ended

Mar. 30, 2019

Basic earnings per share is computed based on the weighted average number of common shares outstanding.

Diluted earnings per share is computed based on the weighted average number of common shares outstanding plus potentially dilutive shares outstanding during the period using the average market price for the respective 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, and the assumed exercise of the warrant under the Warrant Agreement with WCH prior to the exercise of the warrant on February 13, 2019. Potentially dilutive shares issuable upon conversion of the 2.125% Notes are calculated using the if-converted method.

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



	Three Months Ended
	March 30, 2019		March 31, 2018
	(In millions, except per share amounts)
Numerator
Net income	$	16	$	81
Denominator
Basic weighted-average shares	1,044		968
Effect of potentially dilutive shares:
Employee equity incentive plans and warrants	50		71
Diluted weighted-average shares	1,094		1,039
Earnings per share:
Basic	$	0.01	$	0.08
Diluted	$	0.01	$	0.08

Potential shares from employee equity incentive plans and the conversion of the 2.125% Notes totaling 103 million for both the three months ended March 30, 2019 and March 31, 2018 were not included in the earnings per share calculation because their inclusion would have been anti-dilutive.