AMD 2000 Annual Report Download - page 399

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2000, December 26, 1999 and December 27, 1998
1. NATURE OF OPERATIONS
AMD (the Company) is a semiconductor manufacturer with manufacturing facilities
in the U.S., Europe and Asia and sales offices throughout the world. The
Company's products include a variety of industry-standard digital integrated
circuits (ICs) which are used in many diverse product applications such as
telecommunications equipment, data and network communications equipment,
consumer electronics, personal computers (PCs), workstations and servers.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Fiscal Year. The Company uses a 52- to 53-week fiscal year ending on the last
Sunday in December. Fiscal 2000 was a 53-week year which ended on December 31,
2000. Fiscal 1999 and 1998 were 52-week years which ended on December 26 and
December 27, respectively. Fiscal 2001 will be a 52-week year ending December
30, 2001.
Principles of Consolidation. The consolidated financial statements include the
Company's accounts and those of its wholly owned subsidiaries. Upon
consolidation, all significant intercompany accounts and transactions are
eliminated. Also included in the consolidated financial statements, under the
equity method of accounting, is the Company's 49.992 percent investment in
Fujitsu AMD Semiconductor Limited (FASL).
Foreign Currency Translation. Translation adjustments resulting from the process
of translating into U.S. dollars the foreign currency financial statements of
the Company's wholly owned foreign subsidiaries for which the U.S. dollar is the
functional currency are included in operations. Translation adjustments relating
to the financial statements of the Company's indirect wholly owned German
subsidiary in Dresden, in the State of Saxony (AMD Saxony), and the Company's
unconsolidated joint venture, FASL, for which the local currencies are the
functional currencies, are included in stockholders' equity.
Cash Equivalents. Cash equivalents consist of financial instruments which are
readily convertible into cash and have original maturities of three months or
less at the time of acquisition.
Investments. The Company classifies its marketable debt and equity securities at
the date of acquisition, into held-to-maturity and available-for-sale
categories. Currently, the Company classifies its securities as available-for-
sale. These securities are reported at fair market value with the related
unrealized gains and losses included in other comprehensive income (loss), net
of tax, a component of stockholders' equity. Realized gains and losses and
declines in the value of securities judged to be other than temporary are
included in interest income and other, net. Interest and dividends on all
securities are also included in interest income and other, net. The cost of
securities sold is based on the specific identification method.
The Company classifies investments with maturities between three and 12 months
as short-term investments. Short-term investments consist of money market
auction rate preferred stocks and
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Source: ADVANCED MICRO DEVIC, 10-K405, March 20, 2001