AMD 2004 Annual Report Download - page 88

Table of Contents
As a result of the Spansion LLC transaction, Fujitsu became a related party of the Company effective June 30, 2003. The following tables present the
significant transactions and account balances between the Company and Fujitsu for the year ended December 26, 2004 and from June 30, 2003 to December 28,
2003 and balances receivable from or payable to Fujitsu at December 26, 2004 and December 28, 2003, respectively:
Year ended
December 26, 2004
Six Months ended
December 28, 2003
(in thousands)
Sales to Fujitsu $ 1,077,096 $ 448,940
Royalty expenses due to Fujitsu 18,080 8,672
Distributor commissions due to Fujitsu 67,996 29,706
Service fees due to Fujitsu 33,048 21,261
December 26, 2004
December 28,
2003
(in thousands)
Accounts receivable from Fujitsu $ 165,994 $ 187,898
Accounts payable to Fujitsu 18,894 32,345
Accrued royalties to Fujitsu 8,180 7,805
Notes payable to Fujitsu 40,000 40,000
The royalty expense due to Fujitsu represents the payments from Spansion LLC for its use of Fujitsu’s intellectual property. The distributor commission
expense due to Fujitsu represents the compensation that Spansion LLC pays to Fujitsu in connection with Fujitsu’s distribution of Spansion™ Flash memory
products.
The Company’s transactions with Fujitsu are based on terms that are consistent with those of similar arms-length transactions executed with third parties.
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Source: ADVANCED MICRO DEVIC, 10-K, March 01, 2005