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Table of Contents
As a result of Spansion’s IPO, our financial results of operations include Spansion’s financial results of operations as a consolidated subsidiary only
through December 20, 2005. From December 21, 2005, Spansion’s operating results and financial position are not consolidated as part of our financial results.
Instead, we applied the equity method of accounting to reflect our share of Spansion’s net income from December 21, 2005 through December 25, 2005.
Accordingly, our operating results, including the segment operating results for the Memory Products segment, for the year ended December 25, 2005 are not
fully comparable with our results for 2004.
In addition, because prior to Spansion’s IPO we held a 60 percent controlling interest in Spansion, Fujitsu’s 40 percent share in the net income (loss) of
Spansion was reflected as a minority interest adjustment to our consolidated financial statements through December 20, 2005. This minority interest adjustment
does not correspond to operating income (loss) of our Memory Products segment because operating income (loss) for our Memory Products segment includes
operations incremental to those of Spansion. Furthermore, the minority interest calculation is based on Spansion’s net income (loss) rather than operating income
(loss).
Prior to the formation of Spansion LLC on June 30, 2003, the results of operations for periods prior to June 30, 2003 did not include the consolidation of
Spansion’s results of operations. Accordingly, the segment operating information for the Memory Products segment for the year ended December 26, 2004, is not
fully comparable to the reclassified segment information for the prior period presented.
We use a 52- to 53-week fiscal year ending on the last Sunday in December. The years ended December 25, 2005, December 26, 2004 and December 28,
2003, each included 52 weeks. References in this report to 2006, 2005, 2004 and 2003 shall refer to the fiscal year unless explicitly stated otherwise.
The following is a summary of our net sales and operating income (loss) by segment and category for 2005, 2004 and 2003.
2005 2004 2003
(In millions)
Net sales
Computation Products Group $ 3,793 $ 2,528 $ 1,960
Memory Products Group 1,913 2,342 1,419
Personal Connectivity Solutions Group 136 131 140
All Other 6 — —
Total Net Sales $ 5,848 5,001 3,519
Operating income (loss)
Computation Products Group $ 617 $ 266 $ (32)
Memory Products Group (311) 35 (190)
Personal Connectivity Solutions Group (55) (54) (12)
All Other (19) (25) 1
Total Operating Income (Loss) $ 232 $ 222 $ (233)
Computation Products Group
Net sales of our Computation Products of $3.8 billion for 2005 increased 50 percent compared to net sales of $2.5 billion for 2004 primarily due to an
increase of 37 percent in unit shipments and an increase of nine percent in average selling prices. Unit shipments increased due to greater demand for desktop,
mobile and server products across all geographic regions, particularly in North America and Greater China. In addition, our introduction of AMD Turion 64
processors for notebook PCs in March 2005, AMD Opteron dual-core processors for servers and workstations in April 2005 and AMD Athlon 64 dual-core
processors for desktop PCs in May 2005 helped drive increasing customer adoption of our products. The increase in average selling prices was
28
Source: ADVANCED MICRO DEVIC, 10-K, February 27, 2006