AMD 2000 Annual Report Download - page 421

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
agreements caused by AMD Saxony or its affiliates;
. guarantee a portion of AMD Saxony's obligations under the Dresden Loan
Agreement up to a maximum of $99 million until the bank loans are paid
in full;
. fund certain contingent obligations including various obligations to
fund project cost overruns, if any; and
. make funds available to AMD Saxony, after completion of Dresden Fab 30,
up to approximately $70 million (denominated in deutsche marks) if AMD
Saxony does not meet its fixed charge coverage ratio covenant.
Because the amounts under the Dresden Loan Agreements are denominated in
deutsche marks, the dollar amounts set forth herein are subject to change based
on applicable conversion rates. At the end of 2000, the exchange rate was
approximately 2.20 deutsche marks to one U.S. dollar (which the Company used to
calculate the amounts denominated in deutsche marks).
13. INVESTMENT IN JOINT VENTURE
In 1993, the Company formed a joint venture (FASL) with Fujitsu Limited for the
development and manufacture of non-volatile memory devices. FASL operates
advanced IC manufacturing facilities in Aizu-Wakamatsu, Japan, to produce Flash
memory devices. The Company's share of FASL is 49.992 percent and the investment
is being accounted for under the equity method. The Company's share of FASL net
income during 2000 was $11 million, net of income taxes of approximately $5
million. As of December 31, 2000, the cumulative adjustment related to the
translation of the FASL financial statements into U.S. dollars resulted in a
decrease of approximately $14 million to the investment in FASL. The following
tables present the significant FASL related party transactions and balances:
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Three years ended December 31, 2000
(Thousands) 2000 1999 1998
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Royalty income $ 33,273 $ 23,214 $ 21,136
Purchases 381,657 264,344 211,640
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December 31, 2000 and December 26, 1999
(Thousands) 2000 1999
---------------------------------
Royalty Receivable $ 9,561 $ 6,601
Accounts Payable 77,503 35,701
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Pursuant to a cross-equity provision between the Company and Fujitsu, the
Company purchased and owned 0.5 million shares of Fujitsu Limited common stock
as of December 31, 2000. Under the same provision, Fujitsu Limited purchased
nine million shares of the Company's common stock, of which one million shares
were purchased in 1999.
FASL is continuing the facilitization of its second Flash memory device wafer
fabrication facility, FASL JV2, in Aizu-Wakamatsu, Japan. In July 2000, FASL
broke ground for a third
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Source: ADVANCED MICRO DEVIC, 10-K405, March 20, 2001