AMD 2013 Annual Report Download - page 63

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We believe that in the event we decide to obtain additional external funding, we will be able to access the
capital markets on terms and in amounts adequate to meet our objectives. However, given the possibility of
changes in market conditions or other occurrences, we cannot be certain that such funding will be available on
terms favorable to us or at all.
Over the longer term, should additional funding be required, such as to meet payment obligations of our
long-term debt when due, we may need to raise the required funds through borrowings or public or private sales
of debt or equity securities, which may be issued from time to time under an effective registration statement,
through the issuance of securities in a transaction exempt from registration under the Securities Act of 1933, as
amended, or a combination of one or more of the foregoing. We cannot assure you that macroeconomic
conditions will improve, and they could worsen. If market conditions do not improve or deteriorate, we may be
limited in our ability to access the capital markets to meet liquidity needs on favorable terms or at all, which
could adversely affect our liquidity and financial condition, including our ability to refinance maturing liabilities.
Auction Rate Securities
During 2013, we realized a loss of $2 million on sales of approximately $28 million of ARS. We no longer
hold any ARS investments as of December 28, 2013.
Operating Activities
Net cash used in operating activities was $148 million in 2013. A net loss of $83 million in 2013 was
adjusted for non-cash charges consisting primarily of $236 million of depreciation and amortization expenses,
$91 million of stock-based compensation expenses, $31 million net loss on disposal of property, plant and
equipment and $25 million of non-cash interest expenses related to our 6.00% Notes and 8.125% Notes. The net
changes in operating assets as of December 28, 2013 compared to December 29, 2012 included an increase in
inventories of $322 million, largely driven by an increase in Computing Solutions inventory as well as semi-
custom SOC products due to our customers’ next generation game console ramps, an increase in accounts
receivable of $200 million, which was primarily due to higher sales during the fourth quarter of 2013 compared
to the fourth quarter of 2012, an increase in other assets of $92 million, primarily due to new software licenses
and an increase in prepaid expenses and other current assets of $11 million. Accounts payable, accrued and other
liabilities increased by $266 million in 2013 as compared to 2012, primarily due to a $241 million increase in
accounts payable driven by larger purchases of inventory to support higher sales during the fourth quarter of
2013 compared to the fourth quarter of 2012, a $36 million increase in deferred income on shipments to our
distributor customers, and a $28 million increase in accrued compensation and benefits, partially offset by a $39
million decrease in other liabilities, primarily due to a decrease in restructuring accruals and payments for
technology licenses. During 2013, our payables to GF, which included all amounts we owe to GF, decreased by
$89 million as compared to 2012. The decrease was primarily due to payments of $175 million related to GF’s
limited waiver of exclusivity and $40 million related to GF’s waiver of a portion of our obligations for wafer
purchase commitments for the fourth quarter of 2012, partially offset by an increase of $126 million of payables
related to wafer purchases.
Net cash used in operating activities was $338 million in 2012. A net loss of $1.2 billion in 2012 was
adjusted for non-cash charges consisting primarily of a $278 million charge related to the limited waiver of
exclusivity from GF, $260 million of depreciation and amortization expense, $97 million of stock-based
compensation expense and $23 million of non-cash interest expense related to our 6.00% Notes and 8.125%
Notes. These charges were partially offset by a benefit of $40 million for deferred income taxes. The net changes
in operating assets as of December 29, 2012 compared to December 31, 2011 included a decrease in accounts
receivable of $290 million and an increase in inventories of $83 million, which were primarily due to lower sales
during 2012. During 2012, our payable to GF, which included all amounts that we owe to GF, increased by $277
million as compared to 2011. The increase was due to cash obligations of $240 million related to the third
amendment to the WSA and $175 million related to the limited waiver of exclusivity, partially offset by a
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