AMD 2007 Annual Report Download - page 286

Download and view the complete annual report

Please find page 286 of the 2007 AMD annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 298

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200
  • 201
  • 202
  • 203
  • 204
  • 205
  • 206
  • 207
  • 208
  • 209
  • 210
  • 211
  • 212
  • 213
  • 214
  • 215
  • 216
  • 217
  • 218
  • 219
  • 220
  • 221
  • 222
  • 223
  • 224
  • 225
  • 226
  • 227
  • 228
  • 229
  • 230
  • 231
  • 232
  • 233
  • 234
  • 235
  • 236
  • 237
  • 238
  • 239
  • 240
  • 241
  • 242
  • 243
  • 244
  • 245
  • 246
  • 247
  • 248
  • 249
  • 250
  • 251
  • 252
  • 253
  • 254
  • 255
  • 256
  • 257
  • 258
  • 259
  • 260
  • 261
  • 262
  • 263
  • 264
  • 265
  • 266
  • 267
  • 268
  • 269
  • 270
  • 271
  • 272
  • 273
  • 274
  • 275
  • 276
  • 277
  • 278
  • 279
  • 280
  • 281
  • 282
  • 283
  • 284
  • 285
  • 286
  • 287
  • 288
  • 289
  • 290
  • 291
  • 292
  • 293
  • 294
  • 295
  • 296
  • 297
  • 298

Spansion Inc.
Notes to Condensed Consolidated Financial Statements - Continued
(Unaudited)
5. Comprehensive Loss
The following are the components of comprehensive loss:
Three Months Ended Nine Months Ended
Sep. 30,
2007
Oct. 1,
2006
Sep. 30,
2007
Oct. 1,
2006
(in thousands)
Net loss $ (71,602) (22,115) $ (213,982) $ (122,751)
Amortization of prior service cost 99 — 293 —
Pension curtailment loss — — 2,010 —
Net change in cumulative translation adjustment 47,497 (20,543) 28,038 (2,726)
Net change in unrealized gains on marketable securities, net of $0 taxes — — — (7,291)
Total comprehensive loss $ (24,006) $ (42,658) $ (183,641) $ (132,768)
6. Related Party Transactions
Prior to the second quarter of fiscal 2006, the Company relied on AMD and Fujitsu as sole distributors of its products. In the second quarter of fiscal 2006,
the Company began selling its products directly to the customers previously served by AMD. The Company receives certain administrative services from AMD
and Fujitsu. The charges for these services are negotiated annually between the Company and AMD and Fujitsu based on the Company’s expected requirements
and the estimated future costs of the services to be provided. AMD has the right to review the proposed services to be provided by Fujitsu, and Fujitsu has the
right to review the proposed services to be provided by AMD. The service charges are billed monthly on net 45 day terms.
The following tables present significant related party transactions and account balances between the Company and AMD (see Note 8 for separate
disclosure of borrowing arrangements with related parties):
Three Months Ended Nine Months Ended
Sep. 30,
2007
Oct. 1,
2006
Sep. 30,
2007
Oct. 1,
2006
(in thousands)
Net sales to AMD (1)
$ — $ — $ — $ 336,172
Cost of sales:
Royalties to AMD $ 797 $ 1,739 $ 2,352 $ 4,837
Service fees to AMD (2):
Cost of sales $ 15 $ 553 $ (1,100) $ 3,272
Research and development (2) 2,984 177 10,273
Sales, general and administrative 142 3,005 356 18,163
Total service fees to AMD $ 156 $ 6,542 $ (566) $ 31,708
(1) In the second quarter of fiscal 2006, the Company began selling its products directly to the customers previously served by AMD.
(2) Service fees to AMD are net of reimbursements from AMD for services provided to AMD by the Company.
10
Source: ADVANCED MICRO DEVIC, 10-K, February 26, 2008