AMD 1998 Annual Report Download - page 245

Notes to Consolidated Financial Statements
Our operations outside the United States include both manufacturing and sales.
Our manufacturing subsidiaries are located in Germany, Malaysia, Thailand,
Singapore and China. Our sales subsidiaries are in Europe and Asia Pacific.
The following is a summary of operations by entities within geographic areas for
the three years ended December 27, 1998:
(Thousands) 1998 1997 1996
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Sales to external customers:
United States $1,148,610 $1,024,718 $ 917,174
Germany 265,429 219,255 142,339
Other Europe 464,760 464,105 393,444
Asia Pacific 663,342 648,297 500,062
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$2,542,141 $2,356,375 $ 1,953,019
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Long-lived assets:
United States $1,718,435 $1,705,084 $ 1,613,286
Germany 333,851 102,810 12,586
Other Europe 3,927 3,735 4,492
Asia Pacific 212,255 179,060 157,038
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$2,268,468 $1,990,689 $ 1,787,402
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Sales to external customers are based on the customers' billing location. Long-
lived assets are those assets used in each geographic area.
We market and sell our products primarily to a broad base of customers comprised
of distributors and Original Equipment Manufacturers (OEMs) of computation and
communication equipment. One of our OEMs accounted for approximately 12 percent
of 1998 net sales. One of our distributors accounted for approximately 12
percent and 13 percent of 1997 and 1996 net sales, respectively. No other
distributor or OEM customer accounted for 10 percent or more of net sales in
1998, 1997 or 1996.
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NOTE 10. Stock-Based Benefit Plans
STOCK OPTION PLANS We have several stock option plans under which key employees
have been granted incentive (ISOs) and nonqualified (NSOs) stock options to
purchase our common stock. Generally, options are exercisable within four years
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 percent
of the fair market value of the common stock at the date of grant. Exercise
prices of NSOs range from $0.01 to the fair market value of the common stock at
the date of grant.
On September 10, 1998, the Compensation Committee of our Board of Directors
approved a stock option repricing program pursuant to which our employees
(excluding officers and vice presidents) could elect to cancel certain
unexercised stock options in exchange for new stock options with an exercise
price of $19.43, which was equal to 20 percent above the closing price of our
common stock on the New York Stock Exchange on September 10, 1998. Approximately
2 million options were eligible for repricing, of which we repriced
approximately 1.7 million. We extended the vesting schedules and expiration
dates of repriced stock options by one year.
On July 10, 1996, the Compensation Committee of our Board of Directors approved
a stock option repricing program pursuant to which our employees (excluding
officers) could elect to cancel certain unexercised stock options in exchange
for new stock options with an exercise price of $11.88, equal to the closing
price of our common stock on the New York Stock Exchange on July 15, 1996.
Approximately 6.1 million options were eligible for repricing, of which we
repriced approximately 5.3 million. We extended the vesting schedules and
expiration dates of repriced stock options by one year, and certain employees
canceled stock options for four shares of common stock in exchange for repriced
options for three shares of common stock.
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Source: ADVANCED MICRO DEVIC, 10-K, March 29, 1999