AMD 2011 Annual Report Download - page 66

in accounts receivable of $347 million, which included the non-cash impact of our previous financing arrangements
with the IBM Parties. During 2011, the IBM Parties collected approximately $396 million from our distributor
customers pursuant to these arrangements. Without considering the collection by the IBM Parties of the accounts
receivables that we sold to them, our accounts receivable decreased $49 million. This decrease was primarily due to
timing of sales and collections during 2011. There was also a decrease in prepaid expenses and other assets of $115
million primarily due to the receipt of the final settlement payment from Samsung of $117 million.
Net cash used in operating activities was $412 million in 2010. Net income of $471 million was adjusted for
non-cash charges consisting primarily of a $462 million loss from the application of the equity method of
accounting for our investment in GF, $383 million of depreciation and amortization expense, $87 million of
stock-based compensation expense, $30 million of interest expense related to our 6.00% Notes and our 8.125%
Notes and a $24 million net loss related to our repurchase of an aggregate of $1,016 million principal amount of
our 6.00% Notes for $1,011 million in cash. These charges were partially offset by a one-time, non-cash gain of
$325 million related to the deconsolidation of GF, amortization of foreign grants of $16 million and a net gain of
$17 million from the sale of marketable securities. The net changes in operating assets at December 25, 2010
compared to December 26, 2009 included an increase in accounts receivable of $1,138 million, which included
the non-cash impact of our financing arrangement with the IBM Parties. During 2010, the IBM Parties collected
approximately $915 million from our distributor customers pursuant to these arrangements. Without considering
the collection by the IBM Parties of the accounts receivables that we sold to them, our accounts receivable
increased $223 million. This increase was primarily due to the introduction and sale of new products towards the
end of 2010 and the timing of the related collections. Excluding the effects of the deconsolidation of GF, there
was also a decrease in accounts payable, accrued liabilities and other of $184 million, primarily due to the timing
of payments. Accounts payable to GF increased by $55 million due to the timing of payments during 2010.
Net cash provided by operating activities was $473 million in 2009, which included $1.2 billion from the
settlement of our litigation with Intel. Net income of $293 million was adjusted for non-cash charges consisting
primarily of $1.1 billion of depreciation and amortization expense, $121 million of interest expense primarily
related to GF’s Class A Notes and Class B Notes and our 6.00% Notes, $75 million of stock-based compensation
expense, a $28 million net loss from the sale and disposal of property, plant and equipment and an $11 million
net loss primarily related to the redemption of all of our 7.75% Senior Notes due 2012. These charges were offset
by a net gain of $180 million related to our repurchase of an aggregate of $344 million principal amount of our
6.00% Notes for $161 million in cash and $1,015 million principal amount of our 5.75% Notes for
$1,002 million in cash, amortization of foreign grants and allowances of $110 million and a gain of $28 million
from the sale of certain Handheld assets. The net changes in operating assets at December 26, 2009 compared to
December 27, 2008 included an increase in accounts receivable of $960 million. During 2009, the IBM Parties
collected approximately $535 million from our distributor customers pursuant to the financial arrangement
described above. Without considering the collections by the IBM Parties of the accounts receivables that we sold
to them, the increase in accounts receivable was $425 million. This increase was primarily due to timing of sales
and collections during 2009. There was also a decrease in accounts payable and accrued liabilities of $105
million, primarily due to lower purchases reflecting the effect of our cost cutting efforts and timing of payments.
Investing Activities
Net cash used in investing activities was $113 million in 2011. We had a net cash outflow of $234 million
for the purchase and sale of property, plant and equipment, and payments of $17 million for professional services
related to the contribution of GFS to GF. The net cash outflows were partially offset by a net cash inflow of $140
million for purchase, sale, and maturity of available-for-sale securities.
Net cash used in investing activities was $1.1 billion in 2010. The cash flow effect of the deconsolidation of
GF was an outflow of $904 million, which consisted of GF’s cash and cash equivalents. In addition, we had a net
cash outflow of $147 million for purchases of property, plant and equipment and of $160 million for purchases of
available-for-sale securities. The net cash outflows were partially offset by a net cash inflow of $69 million from
the sale of trading securities.
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