AMD 2007 Annual Report Download - page 288

Spansion Inc.
Notes to Condensed Consolidated Financial Statements - Continued
(Unaudited)
The following tables present the significant related party transactions and account balances between the Company and Fujitsu (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 Fujitsu $ 202,464 $ 215,978 $ 650,742 $ 700,352
Cost of sales:
Royalties to Fujitsu $ 797 $ 1,739 $ 2,352 $ 4,837
Other purchases of goods and services from Fujitsu and rental expense to Fujitsu 15,744 31,942 59,645 91,721
Subcontract manufacturing and commercial die purchases from Fujitsu 2,725 14,388 17,602 57,814
Wafer purchases, processing and sort services from Fujitsu (1)
63,274 — 122,236 —
Net gain recognized on sale of assets to Fujitsu on April 2, 2007 (1)
(10,278) — (19,845) —
Reimbursement on costs of employees seconded to Fujitsu (1)
(6,351) — (12,319) —
Pension curtailment loss (1)
— — 2,010 —
Equipment rental income from Fujitsu (1)
(1,884) — (3,914) —
Administrative services income from Fujitsu (1)
(325) — (615) —
$ 63,701 $ 48,069 $ 167,151 $ 154,372
Service fees to Fujitsu:
Cost of sales $ 77 $ 550 $ 660 $ 1,726
Research and development 324 567 923 1,893
Sales, general and administrative 26 1,014 733 3,218
Service fees to Fujitsu $ 426 $ 2,131 $ 2,316 $ 6,837
Cost of employees seconded from Fujitsu:
Cost of sales $ — $ — $ — $ 27
Research and development — — — 61
Sales, general and administrative — — — 95
Cost of employees seconded from Fujitsu $ — $ — $ — $ 183
(1) These amounts relate to the JV1/JV2 Transaction which was consummated on April 2, 2007.
Sep. 30,
2007
Dec. 31,
2006
(in thousands)
Trade accounts receivable from Fujitsu $ 163,373 $ 190,328
Other receivables from Fujitsu $ 3,164 $ —
Accounts payable to Fujitsu $ 50,262 $ 13,046
Royalties payable to Fujitsu $ 797 $ 3,130
Accrued liabilities to Fujitsu $ 5,377 $ 4,970
The Company licenses certain intellectual property from AMD and Fujitsu in exchange for the payment of royalties to both AMD and Fujitsu. These
royalty expenses are recognized in cost of sales.
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Source: ADVANCED MICRO DEVIC, 10-K, February 26, 2008