AMD 2014 Annual Report Download - page 61

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. Uncertain global economic conditions have in the
past and may in the future adversely impact our business. If market conditions 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.
Operating Activities
Net cash used in operating activities was $98 million in 2014. A net loss of $403 million in 2014 was
primarily adjusted for $233 million of goodwill impairment charge, $203 million of depreciation and
amortization expenses, $81 million of stock-based compensation expenses, $61 million net loss on debt
redemptions, $17 million of non-cash interest expenses primarily related to amortization of debt discounts on our
6.00% Notes and 8.125% Notes, amortization of debt issuance costs and a software and technology license and
$14 million non-cash net restructuring and other special charges. The net changes in operating assets as of
December 27, 2014 compared to December 28, 2013 included a decrease in inventories of $199 million, largely
driven by the lower of cost or market inventory adjustment and lower levels of inventory for our Computing and
Graphics and semi-custom SoC products, a decrease in accounts receivable of $7 million, which was primarily
due to timing of sales and collections, an increase in prepayments to GF of $113 million and an increase in
prepaid expenses and other assets of $7 million. Accounts payable, accrued liabilities and other decreased by
$231 million in 2014 as compared to 2013, primarily due to a $104 million decrease in accounts payable driven
by timing of purchases and payments, a $73 million decrease in deferred income on shipments to our distributor
customers and a $47 million decrease in accrued compensation and benefits. During 2014, our payables to GF,
which included all amounts we owe to GF, decreased by $146 million as compared to 2013. The decrease was
primarily due to the final $200 million payment to GF 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, partially offset by an
increase in accounts payable to GF due to timing of payments.
Net cash used in operating activities was $148 million in 2013. A net loss of $83 million in 2013 was
primarily adjusted for $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 primarily related to amortization of debt discounts on our 6.00% Notes and 8.125%
Notes and amortization of debt issuance costs. 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 and Graphics 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
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