AMD 2006 Annual Report Download - page 136

Table of Contents
The following table summarizes sales for the three years ended December 31, 2006 and long-lived assets by geographic areas as of the two years ended
December 31, 2006:
2006 2005 2004
(In millions)
Sales:
United States $ 1,399 $ 1,205 $ 1,038(1)
Japan 116 598 1,084
China 1,478 846 464
Europe 1,345 1,480 1,313
Other countries 1,311 1,719 1,102
$ 5,649 $ 5,848 $ 5,001
Long-lived assets:
United States $ 416 $ 281
Germany 2,886 2,182
Singapore 388 174
Other countries 297 64
$3,987 $2,701
(1) Includes an insignificant amount of sales in Canada.
Sales to external customers are based on the customer’s billing location. Long-lived assets are those assets used in each geographic area.
The Company markets and sells its products primarily to a broad base of customers including third-party distributors, OEMs, ODMs, add-in-board
manufacturers, system integrators, retail stores and e-commerce retailers. In 2006, net sales to the Company’s top two customers was approximately $1.3 billion
and $568 million, which accounted for approximately 23 percent and 10 percent of the Company’s consolidated net revenue. The sales to these customers were
primarily attributable to the Computation Products segment.
In 2005, net sales to one of the Company’s customers were approximately $680 million, which accounted for approximately 12 percent of the Company’s
consolidated net revenues. The sales to this customer were primarily attributable to the Computation Products segment. In 2005, net sales to Fujitsu were
approximately $875 million, which accounted for approximately 15 percent of the Company’s consolidated net revenue. The sales to Fujitsu were primarily
attributable to the Memory Products segment although Fujitsu is also an OEM customer with respect to the Company’s Computation Products segment.
In 2004, gross sales to one of the Company’s distributors were approximately $631 million, which accounted for approximately 13 percent of the
Company’s consolidated gross sales. The sales to this customer were primarily attributable to the Computation Products segment. In 2004, gross sales to Fujitsu
were approximately $1.1 billion, which accounted for approximately 22 percent of the Company’s consolidated gross sales. The sales to Fujitsu were primarily
attributable to the Memory Products segment, although Fujitsu was also an OEM customer with respect to the Company’s Computation Products segment.
NOTE 12: Stock-Based Incentive Compensation Plans
The Company’s stock-based incentive programs are intended to attract, retain and motivate highly qualified employees. On April 29, 2004, the Company’s
stockholders approved the 2004 Equity Incentive Plan (the 2004 Plan). Equity awards are made from the 2004 Plan. Under the 2004 Plan, stock options cannot
be exercised until they become vested. Generally, stock options vest and become exercisable over a three- to four-year period from
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Source: ADVANCED MICRO DEVIC, 10-K, March 01, 2007