AMD 2007 Annual Report Download - page 136

Table of Contents
The following table summarizes sales for the three years ended December 29, 2007 and long-lived assets by geographic areas as of the three years ended
December 29, 2007:
2007 2006 2005
(in millions)
Sales to external customers:
United States(1) $ 759 $ 1,399 $ 1,205
Japan 223 116 598
China 2,492 1,478 846
Europe 1,258 1,345 1,480
Other Countries 1,281 1,311 1,719
$ 6,013 $ 5,649 $ 5,848
Long-lived assets:
United States $ 689 $ 416
Germany 3,350 2,886
Singapore 413 388
Other Countries 268 297
$ 4,720 $ 3,987
(1) Includes an insignificant amount of sales in Canada.
Sales to external customers are based on the customer’s billing location. The increase in sales to from 2006 to 2007 is attributable to the inclusion of sales
of our graphics and chipsets products to contract manufacturers and add-in-board manufacturers based outside the United States, principally in China and
Taiwan, for the full year in 2007 compared to nine weeks in 2006. 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 2007, the Company had one customer that accounted for more than 10 percent of the
Company’s consolidated net revenues. Net sales to this customer were approximately $1.2 billion, or 21 percent of consolidated net revenues and were primarily
attributable to the Computing Solutions segment.
In 2006, the Company had two customers that accounted for more than 10 percent of the Company’s consolidated net revenues. Net sales to these
customers were approximately $1.3 billion and $568 million, or 23 percent and 10 percent, respectively, of consolidated net revenues and were primarily
attributable to the Computing Solutions segment.
In 2005, the Company had two customers that accounted for more than 10 percent of the Company’s consolidated net revenues. Net sales to these
customers were approximately $875 million and $680 million, or 15 percent and 12 percent, of consolidated net revenues and were primarily attributable to the
Computing Solutions segment and Memory 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 the date of grant. Stock
options expire at the times established by the Company’s Compensation Committee of the Board of Directors, but not later than ten years after the grant date. In
addition, unvested shares that are released from or reacquired by the Company from outstanding awards under the 2004 Plan become available for grant under
the 2004 Plan and may be reissued as new awards. The Company also has stock options outstanding
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Source: ADVANCED MICRO DEVIC, 10-K, February 26, 2008