AMD 2001 Annual Report Download - page 238

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
by sale be classified as "held and used" until they are disposed of, and
establishes more restrictive criteria to classify an asset or group of assets to
be "held for sale." SFAS 144 retains the basic provisions of Opinion 30 on how
to present discontinued operations in the income statement but broadens that
presentation to include a component of an entity (rather than a segment of a
business). The Company will adopt SFAS 144 at the beginning of 2002. The Company
does not believe the adoption of SFAS 144 will have a material impact on its
operating results or financial position.
NOTE 3: SALE OF SUBSIDIARIES
The Company sold 90 percent of Legerity for approximately $375 million in cash
to Francisco Partners, L.P., effective July 31, 2000. Prior to the sale,
Legerity was a wholly owned subsidiary of AMD, selling voice communications
products. The Company's pretax gain on the sale of Legerity was $337 million.
The gain was computed based on the excess of the consideration received for
Legerity's net assets as of July 31, 2000, less direct expenses related to the
sale. The applicable tax rate on the gain was 37 percent, resulting in an
after-tax gain of $212 million.
On June 15, 1999, the Company sold Vantis to Lattice Semiconductor Corporation
for approximately $500 million in cash. The actual cash received was net of
Vantis' cash and cash equivalents balance of approximately $46 million as of the
closing of the sale. The Company's pretax gain on the sale of Vantis was $432
million. The gain was computed based upon Vantis' net assets as of June 15, 1999
and other direct expenses related to the sale. The applicable tax rate on the
gain was 40 percent, resulting in an after-tax gain of $259 million.
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Source: ADVANCED MICRO DEVIC, 10-K, March 07, 2002