AMD 1997 Annual Report Download - page 84

ADVANCED MICRO DEVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)
10. INTEREST EXPENSE & INTEREST INCOME AND OTHER, NET
INTEREST EXPENSE
1997 1996 1995
-------- -------- --------
(THOUSANDS)
Interest expense............................... $ 74,716 $ 32,507 $ 21,102
Interest capitalized........................... (29,440) (17,670) (18,043)
-------- -------- --------
$ 45,276 $ 14,837 $ 3,059
======== ======== ========
In 1997, interest expense primarily consisted of interest expense incurred
on the Company's Senior Secured Notes sold in August 1996, interest on the
Company's $250 million four-year secured term loan and interest capitalized
primarily related to the second phase of construction of Fab 25 and Dresden
Fab 30. In 1996, interest expense primarily consisted of interest expense
incurred on the Company's Senior Secured Notes sold in August 1996 and
interest capitalized primarily related to equipment installation in Fab 25. In
1995, interest expense primarily consisted of interest payments on the $150
million four-year term loan the Company entered into on January 5, 1995, and
interest capitalized primarily related to the construction of Fab 25.
INTEREST INCOME AND OTHER, NET
1997 1996 1995
------- ------- -------
(THOUSANDS)
Interest income...................................... $28,975 $19,564 $29,518
Other income, net.................................... 6,122 39,827 2,947
------- ------- -------
$35,097 $59,391 $32,465
======= ======= =======
Other income, net primarily consisted of gains resulting from the sales of
equity investments for all years presented. Also included in other income, net
for all years presented is the net loss on the sale of assets.
11. FOREIGN AND DOMESTIC OPERATIONS
AMD manufactures and markets standard lines of products. The Company's
products include a wide variety of industry-standard ICs which are used in
many diverse product applications such as telecommunications equipment, data
and network communications equipment, consumer electronics, PCs and
workstations.
Operations outside the United States include both manufacturing and sales.
Manufacturing subsidiaries are located in Malaysia, Thailand, Singapore and
China. Sales subsidiaries are in Europe and Asia Pacific.
F-19
Source: ADVANCED MICRO DEVIC, 10-K405, March 03, 1998