AMD 2005 Annual Report Download - page 111

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Table of Contents
Future Payments on Debt and Capital Lease Obligations
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)
2006 39,506 $ 18,226 $ 57,732
2007 39,507 18,204 57,711
2008 39,507 18,135 57,642
2009 38,235 17,908 56,143
2010 — 17,909 17,909
Beyond 2011 1,100,000 151,125 1,251,125
Total 1,256,755 241,507 1,498,262
Less: amount representing interest — 127,973 127,973
Total at present value 1,256,755 $ 113,534 $ 1,370,289
NOTE 9: Interest Income and Other Income (Expense), Net & Interest Expense
Interest Income and Other Income (Expense), Net
2005 2004 2003
(In thousands)
Interest income $ 37,210 $ 18,013 $ 19,702
Other income (expense), net (23,639) (49,163) 1,414
$13,571 $(31,150) $21,116
Interest income in 2005 was approximately $37 million compared to $18 million in 2004 due to increases in average interest rates and average cash
balances.
Other income (expense), net in 2005 included a loss of approximately $10 million during the fourth quarter of 2005 resulting from the mark-to-market to
earnings of certain foreign currency forward contracts which became ineffective in hedging against certain forecasted foreign currency transactions that are now
not expected to occur due to the change of functional currency for AMD Fab 36 KG from the euro to the U.S. dollar and approximately $14 million of
commitment and guarantee fees incurred in connection with the Fab 36 Loan Agreements, which is described in more detail in Note 8.
Other income (expense), 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 (expense),
net in 2004 included a charge of approximately $14 million in connection with the prepayment of the term loan agreement between the Company’s German
subsidiary, AMD Saxony Limited Liability Company & Co. KG and a consortium of banks led by Dresdner Bank AG in order to finance Fab 30, the Fab 30
Term Loan. Other income (expense), 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 to earnings of certain of foreign currency forward contracts that we used as economic hedges of forecasted capital contributions to AMD Fab 36
KG, which do not qualify as accounting hedges. In addition, other income (expense), net, in 2004 included a gain of $8 million from sale of available-for-sale
investments, compared to a gain of $4 million in 2003. Other income (expense), 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, and $2 million in charges for other-than-temporary declines in the Company’s equity
investments.
106
Source: ADVANCED MICRO DEVIC, 10-K, February 27, 2006