AMD 1993 Annual Report Download - page 373

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Concentrations of Credit Risk. Financial instruments which potentially expose
the company to concentrations of credit risk consist primarily of investments
and trade receivables. The company places its investments with
high-credit-quality financial institutions and, by policy, limits the amount of
credit exposure to any one financial institution. Concentrations of credit
risk with respect to trade receivables are limited because a large number of
geographically diverse customers make up the company's customer base, thus
spreading the trade-credit risk. Due to the company's credit evaluation and
collection process, bad debt expenses have been insignificant. The company
performs in-depth credit evaluations for all customers and requires advanced
payments or secures transactions when deemed necessary.
Financial Presentation. Certain prior-year amounts on the Consolidated
Financial Statements have been reclassified to conform to the 1993
presentation.
2. SHAREHOLDERS' EQUITY
The following is a summary of the changes in the components of consolidated
shareholders' equity for the three years ended December 26, 1993.
PREFERRED STOCK COMMON STOCK
--------------- ------------
NUMBER NUMBER CAPITAL IN TOTAL
OF OF EXCESS OF RETAINED SHAREHOLDERS'
Thousands SHARES AMOUNT SHARES AMOUNT PAR VALUE EARNINGS EQUITY
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December 30, 1990 345 $ 35 82,338 $ 826 $ 491,895 $ 143,548 $ 636,304
Issuance of shares under
employee stock plans - - 1,693 16 8,901 - 8,917
Compensation recognized under
employee stock plans - - - - 2,859 - 2,859
Income tax benefits realized from
employee stock option exercises - - - - 339 - 339
Preferred stock dividends - - - - - (10,350) (10,350)
Net income - - - - - 145,287 145,287
------ ------ -------- ------ --------- --------- ----------
December 29, 1991 345 35 84,031 842 503,994 278,485 783,356
Issuance of shares under
employee stock plans - - 4,195 43 15,102 - 15,145
Compensation recognized under
employee stock plans - - - - 3,039 - 3,039
Income tax benefits realized from
employee stock option exercises - - - - 10,539 - 10,539
Preferred stock dividends - - - - - (10,350) (10,350)
Net income - - - - - 245,011 245,011
------ ------ -------- ------ --------- --------- ----------
December 27, 1992 345 35 88,226 885 532,674 513,146 1,046,740
Issuance of shares:
employee stock plans - - 3,218 31 19,408 - 19,439
to Fujitsu Limited - - 1,000 10 22,952 - 22,962
Compensation recognized under
employee stock plans - - - - 1,313 - 1,313
Income tax benefits realized from
employee stock option exercises - - - - 43,386 - 43,386
Preferred stock dividends - - - - - (10,350) (10,350)
Net income - - - - - 228,781 228,781
------ ------ -------- ------ --------- --------- ----------
December 26, 1993 345 $ 35 92,444 $ 926 $ 619,733 $ 731,577 $ 1,352,271
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Source: ADVANCED MICRO DEVIC, 10-K, March 07, 1994