AMD 1999 Annual Report Download - page 172

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Three years ended December 26, 1999 (Thousands) 1999 1998 1997
------------------------------------------------------------------------------------
Net sales $501,797 $427,140 $423,251
Gross profit 20,415 25,432 105,691
Operating income 17,724 20,758 94,863
Net income 9,977 13,104 46,000
------------------------------------------------------------------------------------
December 26, 1999 and December 27, 1998 (Thousands) 1999 1998
------------------------------------------------------------------------------------
Current assets $166,391 $118,140
Non-current assets 594,031 640,040
Current liabilities 206,532 278,309
Non-current liabilities 1,488 1,774
------------------------------------------------------------------------------------
The Company's share of the above FASL net income differs from the equity in net
income of joint venture reported on the consolidated statements of operations.
The difference is due to adjustments resulting from the related party
relationship between FASL and the Company which are reflected on the Company's
consolidated statements of operations.
Note 14: Restructuring and Other Special Charges
In 1999, restructuring and other special charges were $38 million. These charges
were the result of the Company's efforts to better align its cost structure with
the expected revenue growth rates. The restructuring efforts resulted in non-
cash charges for the following:
. closure of a submicron development laboratory facility in the SDC;
. write-off of equipment in the Submicron Development Center (SDC);
. write-off of equipment taken out of service in Fab 25, our integrated
circuit (IC) manufacturing facility located in Austin, Texas, related to the
0.35-micron wafer fabrication process; and write-off of capitalized costs
related to discontinued system projects.
Cash charges consisted of:
. severance and employee benefits for 178 terminated employees in the
Information Technology department, the SDC and certain sales offices;
. costs for leases of vacated and unused sales offices; and
. costs for the disposal of equipment taken out of service in the SDC.
The restructuring and other special charges for the year ended December 26,
1999 are reflected in the table below.
The Company anticipates that the accruals for sales office facilities will be
utilized over the period through lease termination in the second quarter of
2002. The remaining accruals for the disposal costs for equipment that have been
taken out of service will be fully discharged by the end of the first quarter of
2000.
Severance and Equipment Discontinued
(Thousands) employee benefits Facilities Equipment disposal costs system projects Total
----------------------------------------------------------------------------------------------------------------------------
Q1 99 charges $ 779 $ -- $ 8,148 $ -- $ 6,089 $ 15,016
Non-cash charges -- -- (8,148) -- (6,089) (14,237)
----------------------------------------------------------------------------------------------------------------------------
Accruals at March 28, 1999 779 -- -- -- -- 779
Q2 99 charges 2,245 968 10,801 3,500 -- 17,514
Cash charges (1,360) -- -- -- -- (1,360)
Non-cash charges -- -- (10,801) -- -- (10,801)
----------------------------------------------------------------------------------------------------------------------------
Accruals at June 27, 1999 1,664 968 -- 3,500 -- 6,132
Cash charges (1,664) (35) -- (1,067) -- (2,766)
----------------------------------------------------------------------------------------------------------------------------
Accruals at September 26, 1999 -- 933 -- 2,433 -- 3,366
Q4 99 charges -- -- 4,820 880 -- 5,700
Cash charges -- (21) -- (870) -- (891)
Non-cash charges -- -- (4,820) -- -- (4,820)
----------------------------------------------------------------------------------------------------------------------------
Accruals at December 26, 1999 $ -- $912 $ -- $ 2,443 $ -- $ 3,355
----------------------------------------------------------------------------------------------------------------------------
42
Source: ADVANCED MICRO DEVIC, 10-K405, March 21, 2000