AMD 2004 Annual Report Download - page 108

Table of Contents
For each of the next five years and beyond, the Company’s debt and capital lease payment obligations are:
Long-term
debt
(Principal
only)
Capital
leases Total
(in thousands)
2005 $ 134,081 $ 103,205 $ 237,286
2006 121,362 84,698 206,060
2007 264,183 4,861 269,044
2008 27,941 212 28,153
2009 26,676 — 26,676
Beyond 2010 1,100,000 — 1,100,000
Total 1,674,243 192,976 1,867,219
Less: amount representing interest — 8,123 8,123
Total at present value $ 1,674,243 $ 184,853 $ 1,859,096
NOTE 8: Interest Income and Other, Net & Interest Expense
Interest Income and Other, Net
2004 2003 2002
(in thousands)
Interest income $ 18,013 $ 19,702 $ 35,390
Other income (loss), net (49,163) 1,414 (3,258)
$(31,150) $21,116 $32,132
Other income (loss), net in 2004 included a charge of approximately $32 million related to a series of transactions pursuant to which the Company
exchanged $201 million of its 4.50% Notes for its common stock. The charge represented the difference between the fair value of the common stock issued in the
transactions and the fair value of the common stock issuable pursuant to the original conversion terms of the 4.50% Notes. In addition, other income (loss), net in
2004 included a charge of approximately $14 million in connection with the prepayment of the Dresden Term Loan. Other income (loss), net, in 2004 also
included a loss of approximately $6 million during the second quarter of 2004 as a result of the mark-to-market of certain of foreign currency forward contracts
being used as economic hedges of forecasted capital contributions to AMD Fab 36 KG, which do not qualify as accounting hedges. In addition, other income
(loss), net, in 2004 included a gain of $7.5 million from sale of available-for-sale investments, compared to a gain of $3.7 million in 2003.
Other income (loss), net, in 2003 included a gain of approximately $6 million resulting from the partial sale of assets in connection with the formation of
Spansion LLC (see Note 3), and $2.3 million in charges for other-than-temporary declines in the Company’s equity investments as compared to $4.7 million in
2002.
Interest Expense
2004 2003 2002
(in thousands)
Total interest charges $ 121,726 $ 111,433 $ 82,060
Less: interest capitalized (9,398) (1,473) (10,711)
Interest expense $ 112,328 $ 109,960 $ 71,349
In 2004 and 2003, interest expense consisted primarily of interest incurred under the Dresden Loan Agreements, interest on the Company’s 4.75%
Debentures issued in January 2002 and 4.50% Notes issued in
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Source: ADVANCED MICRO DEVIC, 10-K, March 01, 2005