AMD 2004 Annual Report Download - page 87

Table of Contents
of 2002, revenue, net loss and net loss per share for 2002 would have been $3.1 billion, $1.3 billion, and $3.77. These unaudited pro forma results are not
necessarily indicative of the operating results that would have occurred if the transaction had been completed at the beginning of the periods indicated. The
unaudited pro forma results are not necessarily indicative of future operating results.
In addition, the Manufacturing Joint Venture provided a defined benefit pension plan and a lump-sum retirement benefit plan to certain employees.
Although these multiemployer plans continue to be administered by Fujitsu, the Company has assumed related pension liabilities. These plans cover Spansion
Japan’s employees formerly assigned from Fujitsu and employees hired directly by Spansion Japan. The amount of pension cost and the unfunded pension
liability related to these employees are not material to the Company’s consolidated financial statements. For the year ended December 28, 2003, since the
inception of Spansion LLC, the Company recorded an estimated pension cost of approximately $7 million and has recorded an estimated pension benefit
obligation liability of approximately $26 million. For the year ended December 26, 2004, the Company recorded pension cost of approximately $7 million and as
of December 26, 2004, the Company has recorded a pension benefit obligation liability of approximately $26 million. As of March 31, 2004, the date of the latest
actuarial analysis of pension liability, the estimated projected benefit obligations under the plan related to Spansion Japan’s employees was approximately $41
million and the estimated total pension plan assets related to Spansion Japan’s employees were approximately $14 million.
The following table presents the significant related party transactions and account balances between the Company and the Manufacturing Joint Venture for
the periods in which the former investment was accounted for under the equity method (through June 29, 2003):
Six months ended
June 29, 2003
Year ended
December 29, 2002
Royalty income from Manufacturing Joint Venture $ 24,611 $ 38,488
Purchases from Manufacturing Joint Venture 356,595 443,209
Sales to Manufacturing Joint Venture 222,570 25,780
The following is condensed unaudited financial data for the Manufacturing Joint Venture for periods through June 29, 2003:
Six months ended
June 29, 2003
Year ended
December 29, 2002
Net sales $ 565,037 $ 854,199
Gross profit (loss) (12,955) 66,798
Operating income (loss) (14,958) 63,099
Net income (loss) (9,618) 5,051
The Company’s share of the Manufacturing Joint Venture’s net income (loss) differed from the equity in net income previously reported on the condensed
consolidated statements of operations. The difference was due to adjustments resulting from intercompany profit eliminations and differences in U.S. and
Japanese tax treatment of the Manufacturing Joint Venture’s income, which were reflected on the Company’s consolidated statements of operations. The
Company never received cash dividends from the Manufacturing Joint Venture.
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Source: ADVANCED MICRO DEVIC, 10-K, March 01, 2005