AMD 2014 Annual Report Download - page 60

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Stock-based compensation expenses of $91 million in 2013 decreased $6 million compared to $97 million in
2012. The decrease was primarily due to a lower weighted average grant date fair value and lower stock
compensation expense as a result of our 2012 restructuring plan, partially offset by the additional expense related
to stock options and restricted stock granted in connection with our SeaMicro acquisition.
As of December 27, 2014, we had $16 million of total unrecognized compensation expense, net of estimated
forfeitures, related to stock options that will be recognized over a weighted-average period of 2.08 years. Also, as
of December 27, 2014, we had $98 million of total unrecognized compensation expense, net of estimated
forfeitures, related to restricted stock and restricted stock units including performance-based restricted stock units
that will be recognized over a weighted-average period of 1.75 years.
International Sales
International sales as a percentage of net revenue were 81% in 2014, 85% in 2013 and 92% in 2012. The
decrease in international sales as a percentage of net revenue in 2014 compared 2013 and 2012 was primarily
driven by an increase in net revenue from domestic sales of our semi-custom SoC products. We expect that
international sales will continue to be a significant portion of total sales in the foreseeable future. Substantially
all of our sales transactions were denominated in U.S. dollars.
FINANCIAL CONDITION
Liquidity
As of December 27, 2014, our cash, cash equivalents and marketable securities of $1.0 billion were lower
compared to $1.2 billion as of December 28, 2013. The decrease was primarily due to the final $200 million cash
payment made in the first quarter of 2014 related to GF’s waiver of a portion of our obligations for wafer
purchase commitments for the fourth quarter of 2012 and the timing of sales and related collections. During
2014, we also used $95 million for purchases of property, plant and equipment. Also, during 2014, we
reclassified $45 million of our marketable securities that were previously classified as long-term to short-term as
those were intended to be used for operations in the next twelve months. The percentage of cash, cash
equivalents and marketable securities held domestically was 89% as of December 27, 2014.
Our debt and capital lease obligations as of December 27, 2014 were $2.2 billion as compared to $2.1
billion as of December 28, 2013. During 2014, we issued $600 million of 6.75% Notes, $500 million of 7.00%
Notes, and received $75 million net proceeds from our Secured Revolving Line of Credit borrowings.
During 2014, we repurchased and redeemed $500 million in aggregate principal amount of our 8.125%
Notes for $531 million in cash. As of the end of December 27, 2014, we did not have any 8.125% Notes
outstanding. Also in 2014, we repurchased $487 million in aggregate principal amount of our 6.00% Notes for
$529 million in cash, $50 million in aggregate principal amount of our 7.75% Notes for $48 million in cash, and
$25 million in aggregate principal amount of our 7.50% Notes for $24 million in cash. The repurchases of the
7.75% Notes and 7.50% Notes were funded with our Secured Revolving Line of Credit.
In the fourth quarter of 2014, we announced a restructuring plan to implement operating efficiencies. We
believe our cash, cash equivalents and marketable securities balance along with the savings from our
restructuring plan and our Secured Revolving Line of Credit will be sufficient to fund operations, including
capital expenditures, over the next twelve months. We believe that in the event we decide to obtain external
funding, we may be able to access the capital markets on terms and in amounts adequate to meet our objectives.
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,
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