AMD 2009 Annual Report Download - page 49

(1) We acquired ATI Technologies in October 2006. 2006 includes the operations of ATI for the period from
October 25, 2006 through December 31 2006. In addition, 2006 consisted of 53 weeks whereas 2009, 2008,
2007 and 2005 consisted of 52 weeks. As a result, 2006 is not fully comparable to the other periods
presented.
(2) Includes the effects of the retrospective adoption of new accounting guidance for convertible debt that may
be settled in cash upon conversion, as well as the new presentation guidance for noncontrolling interest. We
adopted the new accounting guidance in the first quarter of 2009.
(3) On November 11, 2009, we entered into a comprehensive settlement agreement with Intel. Pursuant to the
settlement agreement, Intel paid us $1.25 billion in December 2009 and we recorded a $1.242 billion gain,
net of certain expenses.
(4) The increase in interest expense from $126 million in 2006 to $382 million in 2007 primarily resulted from
interest on newly issued debt or drawdowns under existing loan agreements.
(5) In 2005, we recorded a loss of $110 million due to the dilution in our ownership interest in Spansion Inc.
from 60 percent to approximately 38 percent in connection with Spansion’s initial public offering (IPO).
This amount represented the difference between Spansion’s book value per share before and after the IPO
multiplied by the number of shares owned by us and is included in the caption “Other income (expense),
net” in our 2005 consolidated statement of operations. From December 21, 2005, the date that Spansion
closed its IPO, through December 25, 2005 and for 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 investees,” on our consolidated statements of operations. In September 2007, as a result
of our loss of the 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. In 2007, 2008 and 2009 we recorded other than temporary impairment charges of $111 million,
$53 million and $3 million, respectively, related to our investment in Spansion. This amount is included
under the caption “Other income (expense), net” in our consolidated statements of operations.
(6) The 2009 provision for income taxes was primarily due to a one-time loss of deferred tax assets for German
net operating loss carryovers upon transfer of our ownership interests in certain German subsidiaries to GF.
The 2008 provision for income taxes primarily resulted from increases in net deferred tax liabilities in our
German subsidiaries reduced by net current tax benefits in other jurisdictions.
(7) During the second quarter of 2008, we decided to divest the Digital Television business and classified it as
discontinued operations. During the third quarter of 2008, we entered into an agreement with Broadcom to
sell certain assets related to the Digital Television business unit. The sale transaction was completed on
October 27, 2008 for $141.5 million and all periods have been recast to conform to this presentation.
(8) The 2009 noncontrolling interest amounts are primarily related to GF and represent the allocation of the
operating results to ATIC, which, during 2009, was considered the noncontrolling partner of GF. The 2008,
2007, and 2006 noncontrolling interest amounts represent the guaranteed rate of return of between 11 and 13
percent related to the limited partnership contributions that our former German subsidiary, AMD Fab 36
Limited Liability Company & Co. KG (AMD Fab 36 KG) received from its unaffiliated partners (Fab 36
Ownership Interest). The 2005 noncontrolling interest amount includes the Fab 36 Ownership Interest and
the ownership interest in Spansion held by Fujitsu.
(9) Represents the guaranteed rate of return that ATIC earns on its ownership of GF Class B preferred stock.
(10) Total assets increased $1,406 million from 2008 to 2009 primarily due to higher cash, cash equivalents and
marketable securities due to the cash received, including GF cash, in connection with the consummation of
the GF manufacturing joint venture transaction. Total assets decreased $3,878 million from 2007 to 2008
primarily due to the impairment of ATI acquisition-related goodwill and acquired intangible assets, lower
cash, cash equivalents and marketable securities due to our significant losses, and the sale and impairment
of assets associated with the divestiture of the Digital Television business unit in 2008. Total assets
decreased $1,597 million from 2006 to 2007 primarily due to the impairment of ATI acquisition-related
goodwill and intangible assets. Total assets increased $5,859 million from 2005 to 2006 primarily as a result
of the acquisition of ATI.
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