AMD 1999 Annual Report Download - page 164

Vantis segment 2,273 3,802 3,888
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Total depreciation and amortization expense $ 515,520 $ 467,521 $ 394,465
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The Company's operations outside the United States include both manufacturing
and sales. The Company's manufacturing subsidiaries are located in Germany,
Malaysia, Thailand, Singapore and China. Its sales subsidiaries are in Europe,
Asia Pacific and Brazil.
The following is a summary of operations by entities within geographic areas
for the three years ended December 26, 1999:
(Thousands) 1999 1998 1997
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Sales to external customers:
United States $1,131,983 $1,148,610 $1,024,718
Europe 835,673 730,189 683,360
Asia Pacific 889,948 663,342 648,297
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$2,857,604 $2,542,141 $2,356,375
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Long-lived assets:
United States $1,469,412 $1,718,435 $1,705,084
Germany 812,773 333,851 102,810
Other Europe 3,847 3,927 3,735
Asia Pacific 237,204 212,255 179,060
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$2,523,236 $2,268,468 $1,990,689
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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 comprised of distributors and Original Equipment Manufacturers (OEMs)
of computation and communication equipment. One of the Company's OEMs accounted
for approximately 13 and 12 percent of 1999 and 1998 net sales, respectively.
One of the Company's distributors accounted for approximately 12 percent of 1997
net sales.
Note 10: Stock-Based Benefit 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. Generally, options vest and
become exercisable over the 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
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. As of December 26, 1999,
2,884 employees were eligible and participating in the plans.
In 1998, the Compensation Committee of the Company's Board of Directors
approved a stock option repricing program pursuant to which the Company's
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 the
Company's common stock on the New York Stock Exchange on September 10, 1998.
Approximately two million options were eligible for repricing, of which the
Company repriced approximately 1.7 million. The Company extended the vesting
schedules and expiration dates of repriced stock options by one year.
The following is a summary of stock option activity and related information
(the repriced options are shown as canceled and granted options in 1998 when
they were repriced):
1999 1998 1997
Number Weighted-average Number Weighted-average Number Weighted-average
(Shares in thousands) of shares exercise price of shares exercise price of shares exercise price
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Options:
Outstanding at beginning
of year 20,275 $ 16.71 17,780 $17.07 18,651 $12.17
Granted 4,903 16.70 6,555 19.84 3,392 34.33
Canceled (2,355) 20.90 (2,666) 31.17 (782) 16.05
Exercised (1,829) 10.91 (1,394) 8.38 (3,481) 8.03
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Outstanding at end of year 20,994 16.74 20,275 16.71 17,780 17.07
Source: ADVANCED MICRO DEVIC, 10-K405, March 21, 2000