AMD 2007 Annual Report Download - page 51

Table of Contents
ITEM 6. SELECTED FINANCIAL DATA
Five Years Ended December 29, 2007
(In millions except per share amounts)
2007(1)(3) 2006(2)(3) 2005(3) 2004(4) 2003(5)
Net revenue $ 6,013 $ 5,649 $ 5,848 $ 5,001 $ 3,519
Cost of sales 3,751 2,856 3,456 3,033 2,327
Gross margin 2,262 2,793 2,392 1,968 1,192
Research and development 1,847 1,205 1,144 934 852
Marketing, general and administrative 1,373 1,140 1,016 812 573
In-process research and development — 416(6) — — —
Amortization of acquired intangible assets and other integration charges(7) 299 79 — — —
Impairment of goodwill and acquired intangible assets 1,608(8) — — — —
Operating income (loss) (2,865) (47) 232 222 (233)
Interest income 73 116 37 18 20
Interest expense (367)(9) (126) (105) (112) (110)
Other income (expense), net (7) (13) (24) (49)(10) 1
Income (loss) before minority interest, equity in net income (loss) of Spansion
Inc. and other and income taxes (3,166) (70) 140 79 (322)
Minority interest in consolidated subsidiaries(11) (35) (28) 125 18 45
Equity in net income (loss) of Spansion Inc. and other(12) (155) (45) (107) — 6
Provision (benefit) for income taxes 23(13) 23(14) (7) 6 3
Net income (loss) $ (3,379) $ (166) $ 165 $ 91 $ (274)
Net income (loss) per common share
Basic—income (loss) $ (6.06) $ (0.34) $ 0.41 $ 0.25 $ (0.79)
Diluted—income (loss) $ (6.06) $ (0.34) $ 0.40 $ 0.25 $ (0.79)
Shares used in per share calculation
Basic 558 492 400 359 347
Diluted 558 492 441 371 347
Long-term debt, capital lease obligations and other,
less current portion and other long term liabilities $ 5,664 $ 4,189 $ 1,786 $ 2,043 $ 2,328
Total assets(15) $ 11,550 $ 13,147 $ 7,288 $ 7,844 $ 7,050
(1) Consolidated statement of operations data for 2007 includes the operations of ATI for the entire fiscal year. As a result, 2007 is not fully comparable to
prior periods.
(2) Consolidated statement of operations data for 2006 includes the operations of ATI for the period from October 25, 2006 through December 31, 2006. As a
result, 2006 is not fully comparable to 2007 or to prior periods.
(3) Consolidated statement of operations data for 2005 includes the results of operations for our former Memory Products segment through December 20,
2005. From December 21, 2005, the date that Spansion Inc., our former majority-owned subsidiary, closed its IPO through December 25, 2005 and all of
2006, we used the equity method of accounting to reflect our share of Spansion’s net income (loss). We include this information under the caption, “Equity
in net income (loss) of Spansion Inc. and other,” on our consolidated statements of operations. In September 2007, as a result of our reduced ownership
interest in, and the loss of our ability to exercise significant influence over, Spansion, we ceased applying the equity method of accounting and began
accounting for this investment as “available-for-sale” marketable securities under FASB Statement No. 115, Accounting for Certain Investments in Debt
and Equity Securities. Therefore, 2005, 2006 and 2007 are not fully comparable to each other or to prior periods.
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Source: ADVANCED MICRO DEVIC, 10-K, February 26, 2008