AMD 1999 Annual Report Download - page 162

Interest Income and Other, Net
(Thousands) 1999 1998 1997
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Interest income $26,461 $31,478 $28,975
Other income, net 5,274 2,729 6,122
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$31,735 $34,207 $35,097
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Other income consists of gains from the sales of investments, other assets and
fixed assets.
Note 9: Segment Reporting
For purposes of the disclosure required by the Statement of Financial Accounting
Standards SFAS 131, the Company operated in two reportable segments in the first
half of 1999, and in 1998 and 1997: (1) the AMD segment and (2) through June 15,
1999, the Vantis segment. The Company's reportable segments were organized as
discrete and separate functional units with separate management teams and
separate performance assessment and resource allocation processes. The AMD
segment produces microprocessors, core logic products, Flash memory devices,
EPROMs, telecommunication products, networking products and embedded processors.
The Vantis segment produced complex and simple, high performance complementary
metal oxide semiconductor (CMOS) programmable logic devices (PLDs).
The accounting policies of the segments are the same as those described in the
summary of significant accounting policies. The Company evaluates performance
and allocates resources based on segment operating income (loss).
The AMD segment did not have intersegment sales prior to the fourth quarter of
1997. The Vantis segment did not have intersegment sales for any of the years
presented below.
(Thousands) 1999 1998 1997
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Net sales:
AMD segment
External customers $2,770,912 $2,337,144 $2,113,276
Intersegment 32,626 88,455 25,896
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2,803,538 2,425,599 2,139,172
Vantis segment external customers 86,692 204,997 243,099
Elimination of intersegment sales (32,626) (88,455) (25,896)
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Net sales $2,857,604 $2,542,141 $2,356,375
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Segment income (loss):
AMD segment $ (326,555) $ (185,242) $ (127,406)
Vantis segment 5,639 21,600 36,753
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Total operating loss (320,916) (163,642) (90,653)
Gain on sale of Vantis 432,059 -- --
Litigation settlement -- (11,500) --
Interest income and other, net 31,735 34,207 35,097
Interest expense (69,253) (66,494) (45,276)
Benefit (provision) for income taxes (167,350) 91,878 55,155
Equity in net income of FASL (AMD segment) 4,789 11,591 24,587
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Net loss $ (88,936) $ (103,960) $ (21,090)
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Total assets:
AMD segment
Assets excluding investment in FASL $4,104,090 $3,881,268 $3,187,506
Investment in FASL 273,608 236,820 204,031
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4,377,698 4,118,088 3,391,537
Vantis segment assets -- 134,880 123,734
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Total assets $4,377,698 $4,252,968 $3,515,271
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Expenditures for long-lived assets:
AMD segment $ 613,631 $ 993,679 $ 683,346
Source: ADVANCED MICRO DEVIC, 10-K405, March 21, 2000