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

Annual report pursuant to Section 13 and 15(d)

Earnings Per Share

Earnings Per Share

12 Months Ended

Dec. 25, 2021

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

Diluted earnings 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 Company’s stock options, RSUs (including PRSUs), common stock to be issued under the ESPP and 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 per share:


	December 25, 2021		December 26, 2020		December 28, 2019
	(In millions, except per share amounts)
Numerator
Net income for basic earnings per share	$	3,162	$	2,490	$	341
Effect of potentially dilutive shares:
Interest expense related to the 2.125% Notes	—		1		—
Net income for diluted earnings per share	$	3,162	$	2,491	$	341
Denominator
Basic weighted-average shares	1,213		1,184		1,091
Effect of potentially dilutive shares:
Employee equity plans and warrants	16		20		29
2.125% Notes	—		3		—
Diluted weighted-average shares	1,229		1,207		1,120
Earnings per share:
Basic	$	2.61	$	2.10	$	0.31
Diluted	$	2.57	$	2.06	$	0.30

Potential shares from employee equity plans and the impact from the conversion of the 2.125% Notes up to the conversion date, totaling 2 million and 22 million shares for 2021 and 2020, respectively, were not included in the earnings per share calculation because their inclusion would have been anti-dilutive.