Here is your SEC documentation:
latest 10Q for Q2, 2003 (page 6):
3. Stock-Based Incentive Compensation Plans
The Company uses the intrinsic value method to account for stock options issued to its employees under its stock option plans and amortizes deferred compensation, if any, over the vesting period of the options. Compensation expense resulting from the issuance of fixed term stock option awards is measured as the difference between the exercise price of the option and the fair market value of the underlying share of company stock subject to the option on the award’s grant date. For purposes of pro forma disclosures, the Company estimates the fair value of its stock-based awards to employees using a Black-Scholes option pricing model.
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The highlighted sentences say it all -- AMD records NQSO (in-the-money-when-granted) options as deferred compensation expenses, which means they affect earnings, not just taxes over the period that the option is exercisable, probably ten years. Thus, in 2003, AMD is recording expenses for options granted from 1994 to 2003.
Note the distinction implied in the last sentence of the 10Q. Since the FASB allows it, ISO options cause no reduction in reported earnings (just like Intel), but AMD publishes, within the 10Q, a "pro forma disclosure" that values ISO options using Black Scholes.
PS, Actually, NQSOs are usually shorter than 10 years, probably 5
Petz
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