AMD 2000 Annual Report Download - page 413

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Under certain circumstances, cross-defaults result under the Convertible
Subordinated Notes, the Indenture for the Senior Secured Notes and the Dresden
Loan Agreements, which consist of a loan agreement and other related agreements
between AMD Saxony and a consortium of banks led by Dresdner Bank AG.
8. INTEREST EXPENSE & INTEREST INCOME AND OTHER, NET
Interest Expense
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(Thousands) 2000 1999 1998
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Total interest charges $ 86,488 $ 116,255 $ 96,206
Less: interest capitalized (26,451) (47,002) (29,712)
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Interest expense $ 60,037 $ 69,253 $ 66,494
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In 2000, 1999 and 1998, interest expense consisted primarily of interest
incurred on the Company's Senior Secured Notes sold in August 1996, interest on
the Company's Convertible Subordinated Notes sold in May 1998 and interest on
the Company's $250 million four-year secured term loan, net of interest
capitalized primarily related to the facilitization of Fab 25 and Dresden Fab
30.
Interest Income and Other, Net
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(Thousands) 2000 1999 1998
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Interest income $ 59,228 $ 26,461 $ 31,478
Other income, net 27,073 5,274 2,729
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$ 86,301 $ 31,735 $ 34,207
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Other income consists of gains from the sales of investments and other assets.
9. SEGMENT REPORTING
For purposes of disclosures required by Statement of Financial Accounting
Standards No. 131 (SFAS 131), AMD operated in three reportable segments during
2000: the Core Products, Voice Communications and Foundry Services segments. AMD
has previously shown two reportable segments, however, as a result of the sale
of Legerity, effective July 31, 2000, the Company re-evaluated its segment
reporting structure. Prior period segment information has been restated to
conform to the current period presentation. The Core Products segment includes
microprocessors, Flash memory devices, Erasable Programmable Read-Only Memory
(EPROM) devices, embedded processors, platform products and networking products.
The Voice Communications segment includes voice communications products of the
Company's former subsidiary, Legerity, until July 31, 2000, the effective date
of its sale. The Vantis segment included the programmable logic devices of the
Company's former subsidiary, Vantis, until June 15, 1999, the date of its sale.
The Foundry Services segment included fees for services provided
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Source: ADVANCED MICRO DEVIC, 10-K405, March 20, 2001