AMD 2009 Annual Report Download - page 73

charges attributable to discontinued operations, $1.2 billion of depreciation and amortization expense, $83
million of stock-based compensation expense, $77 million of other than temporary impairment on our marketable
securities, $29 million net loss from the sale and disposal of property, plant and equipment and $29 million of
interest expense primarily related to our 6.00% Notes. These charges were offset by a $193 million net gain on
the sale of certain 200-millimeter wafer fabrication equipment, the amortization of foreign grants and allowances
of $107 million and a net gain of $34 million on our repurchase of a portion of our 6.00% Notes. The net changes
in our operating assets at December 27, 2008 compared to December 29, 2007 included a decrease of
$722 million in accounts payable and accrued liabilities primarily reflecting the effects of our cost cutting efforts
and a decrease of $101 million in accounts receivable. During 2008, IBM collected approximately $221 million
from our customers pursuant to the financing arrangements described above. Therefore, without considering
IBM’s collections of the accounts receivables that we sold to them, the decrease in accounts receivable was $322
million primarily due to a decrease in sales and improved cash collection efforts in 2008. There was also a
decrease of $64 million in prepaid and other current assets primarily related to a decrease in receivables of
foreign grants and allowances.
Net cash used in operating activities was approximately $310 million in 2007. Our net loss of $3.4 billion
was adjusted for non-cash charges consisting primarily of $1.6 billion of goodwill and acquisition-related
intangible impairment charges, $1.3 billion of depreciation and amortization expense, $155 million of other than
temporary impairment on our marketable securities, $112 million of stock-based compensation expense and $18
million of interest expense primarily related to our 6.00% Notes. These charges were partially offset by
amortization to income of foreign grants and subsidies of $167 million. The net changes in our operating assets at
December 29, 2007 compared to December 31, 2006 included a decrease of $503 million in accounts receivable
partially offset by a decrease of $329 million in accounts payable and accrued liabilities and an increase of $134
million in prepaid and other current assets. Our accounts receivable balance decreased due to greater efficiency
in management and collection of accounts receivables. Accounts payable and accrued liabilities decreased due to
the timing of payments partially offset by increases in accrued interest and accruals for technology license
payment obligations. The increase in prepaid and other assets was driven by increases in receivables for foreign
grants and allowances, purchases of technology licenses and an increase in prepaid insurance.
Investing Activities
Net cash used in investing activities was $1.3 billion in 2009 primarily as a result of a net cash outflow of
$883 million for the purchase of available-for-sale securities and $466 million used to purchase property, plant
and equipment, of which $394 million related to property, plant and equipment attributable to the Foundry
segment. This was partially offset by $58 million of proceeds from sale of certain Handheld assets and $14
million of proceeds from the maturity of trading securities.
Net cash used in investing activities was $27 million in 2008. Payments of $624 million of cash used to
purchase property, plant and equipment and $95 million in connection with the exercise of our call option to
repurchase the partnership interests in AMD Fab 36 KG held by one of the unaffiliated partners, Fab 36
Beteiligungs GmbH & Co. KG, were partially offset by $343 million of proceeds from the sale of property, plant
and equipment, primarily 200 millimeter equipment, $216 million in net proceeds from the sale and maturity of
available-for-sale securities and $127 million of cash proceeds from sale of our Digital Television business unit.
Of the total purchase price of $141.5 million, $14 million is held in escrow upon the closing of the transaction in
December 2008. We are eligible to receive this amount within 18 months after the completion of the transaction,
subject to specified conditions.
Net cash used in investing activities was approximately $1.7 billion in 2007. We used $1.7 billion to
purchase property, plant and equipment, including approximately $691 million to purchase equipment for Fab 36.
We also purchased $545 million in available-for-sale securities. This was offset primarily by $307 million in
proceeds from sales and maturities of available-for-sale securities, $157 million in proceeds from sales of
Spansion shares, and $73 million from sales of assets, including excess land in Sunnyvale, California and
customer deposits on the sale of 200 millimeter wafer fabrication equipment.
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