AMD 2003 Annual Report Download - page 90

Table of Contents
The Company’s operations outside the United States include both manufacturing and sales activities. The Company’s manufacturing subsidiaries are
located in Germany, Japan, Malaysia, Thailand, Singapore and China. Its sales subsidiaries are located in Europe, Asia and Latin America.
The following table summarizes sales and long-lived assets by geographic areas as of and for each of the three years ended December 28, 2003:
2003 2002 2001
(Thousands)
Sales to external customers:
United States(1) $ 720,679 $ 736,566 $ 1,282,663
Japan 575,479 251,673 217,667
Korea 316,893 339,740 279,898
Europe 1,179,474 945,836 1,492,428
Other Countries 726,643 423,214 619,098
$ 3,519,168 $ 2,697,029 $ 3,891,754
Long-lived assets:
United States $ 1,045,194 $ 1,020,914
Germany 1,530,687 1,552,486
Japan 974,473 1,922
Other Countries 298,138 305,487
$ 3,848,492 $ 2,880,809
(1) Includes insignificant amount of sales in Canada
Sales to external customers are based on the customer’s billing location. Long-lived assets are those assets used in each geographic area.
The Company markets and sells its products primarily to a broad base of customers comprising distributors and OEMs of computer and communications
equipment. In 2003, net sales to one of the Company’s distributors was approximately $458 million, which accounted for approximately 13 percent of the
Company’s consolidated net sales. The revenue from this customer was primarily attributable to the Computation Products segment. In 2003, net sales to another
one of the Company’s distributors was approximately $463 million, which accounted for approximately 13 percent of the Company’s consolidated net sales. The
revenue from this customer was primarily attributable to the Memory Products segment. No distributor accounted for ten percent or more of consolidated net
sales in 2002 and 2001. No OEM customer accounted for more than ten percent of consolidated net sales in 2003, 2002 and 2001.
NOTE 10: Stock-Based Incentive Compensation Plans
Stock Option Plans. The Company has several stock option plans under which key employees have been granted incentive (ISOs) and nonqualified
(NSOs) stock options to purchase the Company’s common stock. Compensation expense, if any, recorded upon the issuance of stock options, is computed using
the intrinsic value method. Generally options vest and become exercisable over a four-year period from the date of grant and expire five to ten years after the date
of grant. ISOs granted under the plans have exercise prices of not less than 100% of the fair market value of the common stock on the date of grant. Exercise
prices of NSOs range from $0.01 to the fair market value of the common stock on the date of grant.
On June 27, 2003, the Company filed a Tender Offer Statement with the SEC and made an offer, which was approved by the Company’s stockholders to
exchange certain stock options to purchase shares of common stock, outstanding under eligible option plans and held by eligible employees, for replacement
options to be granted no sooner than six months and one day from the cancellation of the surrendered options. The offer to exchange
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Source: ADVANCED MICRO DEVIC, 10-K, March 09, 2004