AMD 2001 Annual Report Download - page 247

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 8: INTEREST EXPENSE & INTEREST AND OTHER INCOME, NET
Interest Expense
-------------------------------------------------------------------------------
(Thousands) 2001 2000 1999
-----------------------------------------------
Total interest charges $ 68,403 $ 86,488 $116,255
Less: interest capitalized (7,043) (26,451) (47,002)
-------- --------- --------
Interest expense $ 61,360 $ 60,037 $ 69,253
======== ========= ========
-------------------------------------------------------------------------------
In 2001, interest expense consisted primarily of interest incurred by AMD
Saxony's secured term loan under the Dresden Loan Agreements and interest on the
Company's Convertible Subordinated Notes issued in May 1998. In 2000 and 1999,
interest expense consisted primarily of interest incurred on the Company's
Senior Secured Notes issued in August 1996, interest on the Company's
Convertible Subordinated Notes issued in May 1998, interest on the Company's
$250 million four-year secured term loan and interest on AMD Saxony's secured
term loan, net of interest capitalized primarily related to the facilitization
of Fab 25 and Dresden Fab 30.
Interest and Other Income, Net
-------------------------------------------------------------------------------
(Thousands) 2001 2000 1999
----------------------------------------------
Interest income $42,988 $59,228 $ 26,461
Other income (loss), net (17,293) 27,073 5,274
----------------------------------------------
$25,695 $86,301 $ 31,735
-------------------------------------------------------------------------------
Other loss in 2001 consisted of charges for other than temporary declines in the
value of our marketable debt and equity securities investments totaling
approximately $27 million. Other income in 2000 and 1999 consisted of gains from
sales of investments and other assets.
NOTE 9: SEGMENT REPORTING
For purposes of disclosures required by Statement of Financial Accounting
Standards No. 131 (SFAS 131), AMD operated in two reportable segments during
2001: the Core Products segment, which reflects the aggregation of the PC
processor and memory products operating segments, and the Foundry Services
segment. The aggregation of our operating segments into our reporting segments
was made pursuant to the aggregation criteria set forth in SFAS 131. The Core
Products segment includes microprocessors, Flash memory devices, Erasable
Programmable Read-Only Memory (EPROM) devices, embedded processors, platform
products and networking products. The Foundry Services segment includes fees for
services provided to Legerity and Vantis. During 2000 and 1999, the Company also
operated in the Voice Communications Segment. The Voice Communications segment
included voice communications products of the Company's former subsidiary,
Legerity, until July 31, 2000, the effective date of its sale. In addition, in
1999, the Company also operated in the Vantis segment. 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 accounting policies of
the segments are the same as those described in the Summary of Significant
Accounting Policies. The Company evaluates performance and allocates resources
based on these segments' operating income (loss).
The following table is a summary of operating income (loss) by segment for 2001,
2000 and 1999:
37
Source: ADVANCED MICRO DEVIC, 10-K, March 07, 2002