AMD 2000 Annual Report Download - page 422

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
fabrication facility, FASL JV3, for the manufacture of Flash memory devices in
Aizu-Wakamatsu, Japan. As of December 31, 2000, the building is complete and the
clean room is under construction. Capital expenditures for FASL JV2 and FASL JV3
construction to date have been funded by cash generated from FASL operations and
borrowings by FASL.
FASL capital expenditures in 2001 will continue to be funded by cash generated
from FASL operations and local borrowings by FASL. However, to the extent that
FASL is unable to secure the necessary funds for FASL JV2 or FASL JV3, the
Company may be required to contribute cash or guarantee third-party loans in
proportion to its 49.992 percent interest in FASL. As of December 31, 2000, the
Company had $38 million in loan guarantees outstanding with respect to these
loans. These planned costs are denominated in yen and are, therefore, subject to
change due to foreign exchange rate fluctuations. At the end of 2000, the
exchange rate was approximately 112.52 yen to one U.S. dollar, which the Company
used to calculate the amounts denominated in yen.
The following is condensed financial data of FASL:
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Three years ended December 31, 2000 (Thousands) 2000 1999 1998
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Net sales $ 733,574 $ 501,797 $427,140
Gross profit 53,174 20,415 25,432
Operating income 49,645 17,724 20,758
Net income 28,179 9,977 13,104
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December 31, 2000 and December 26, 1999 (Thousands) 2000 1999
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Current assets $ 234,139 $ 166,391
Non-current assets 786,802 594,031
Current liabilities 482,629 206,532
Non-current liabilities 1,271 1,488
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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.
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;
. 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.
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Source: ADVANCED MICRO DEVIC, 10-K405, March 20, 2001