AMD 2003 Annual Report Download - page 77

Table of Contents
The following is condensed unaudited financial data for the Manufacturing Joint Venture for periods through June 29, 2003:
Six months ended
June 29, 2003
Year
ended
2002
Year
ended
2001
(Thousands)
Net sales $ 565,037 $ 854,199 $ 978,059
Gross profit (loss) (12,955) 66,798 165,115
Operating income (loss) (14,958) 63,099 160,298
Net income (loss) (9,618) 5,051 34,924
December 29,
2002
(Thousands)
Current assets $ 287,050
Non-current assets 1,056,107
Current liabilities 549,015
The Company’s share of the Manufacturing Joint Venture’s net income (loss) differed from the equity in net income previously reported on the condensed
consolidated statements of operations. The difference was due to adjustments resulting from intercompany profit eliminations and differences in U.S. and
Japanese tax treatment of the Manufacturing Joint Venture’s income, which were reflected on the Company’s consolidated statements of operations. The
Company never received cash dividends from the Manufacturing Joint Venture.
As a result of the FASL LLC transaction, Fujitsu became a related party of the Company effective June 30, 2003. The following tables present the
significant transactions and account balances between the Company and Fujitsu from June 30, 2003 to December 28, 2003 and balances receivable from or
payable to Fujitsu at December 28, 2003:
From June 30,
2003 to
December 28,
2003
(Thousands)
Sales to Fujitsu $ 448,940
Royalty expenses to Fujitsu 8,672
Distributor commission to Fujitsu 29,706
Service fees to Fujitsu 21,261
December 28,
2003
(Thousands)
Accounts receivable from Fujitsu $ 187,898
Accounts payable to Fujitsu 32,345
The royalty expense to Fujitsu represents the payments from FASL LLC for its use of Fujitsu’s intellectual property. The commission expense to Fujitsu
represents the compensation that FASL LLC pays to Fujitsu for being a distributor of Spansion™ Flash memory products.
The Company’s transactions with Fujitsu are based on terms that are consistent with those of similar arms-length transactions executed with third parties.
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Source: ADVANCED MICRO DEVIC, 10-K, March 09, 2004