AMD 2000 Annual Report Download - page 376

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
The Vantis segment operating income was zero in 2000 due to the sale of Vantis
on June 15, 1999. Vantis had sales activity for 24 weeks in 1999.
The Foundry Services segment operating income increased by $21 million in 2000
compared to 1999 primarily due to the addition of service fees.
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FINANCIAL CONDITION
Net cash provided by operating activities was $1,206 million in 2000 primarily
due to net income of $983 million and depreciation and amortization of $579
million, offset by a nonrecurring $337 million reduction to operating cash flows
from the gain on the sale of Legerity in 2000, a decrease of $269 million in
other assets, an increase of $158 million from income tax benefits from employee
stock option exercises, a decrease of $156 million in inventory, an increase of
$157 million in payables and accrued liabilities, an increase of $143 million
from customer deposits under long-term purchase agreements, a decrease of $132
million in accounts receivable, an increase of $79 million in prepaid expenses
and a decrease of $35 million from foreign grant and subsidy income.
Net cash provided by operating activities was $260 million in 1999 primarily due
to the net loss of $89 million, a nonrecurring $432 million reduction in
operating cash flows from the gain on the sale of Vantis in 1999, an increase of
$516 million from depreciation and amortization, an increase of $161 million
from deferred income taxes, an increase of $156 million in payables and accrued
liabilities, a decrease of $102 million in prepaid expenses, an increase of $55
million in other assets, a decrease of $50 million from foreign grant and
subsidy income not received in cash, a decrease of $45 million in accounts
receivable and a decrease of $23 million in inventory.
Net cash provided by operating activities was $142 million in 1998 primarily due
to a net loss of $104 million, an increase of $468 million from depreciation and
amortization, a decrease of $107 million in deferred income taxes, a decrease of
$88 million in accounts receivable, a decrease of $46 million in other assets,
an increase of $19 million in payables and accrued liabilities, a decrease of
$13 million in prepaid expenses, an increase of $9 million in tax refund
receivable and tax payable and a decrease of $7 million in inventory.
Net cash used in investing activities was $816 million in 2000 primarily due to
$805 million used for purchases of property, plant and equipment, offset by $375
million we received in 2000 from the sale of Legerity and $398 million of net
purchases of available-for-sale securities. Net cash used in investing
activities was $142 million in 1999 primarily due to $454 million from the sale
of Vantis, a decrease of $620 million from purchases of property, plant and
equipment offset by $19 million in net proceeds from sales of available-for-sale
securities, and $4 million in proceeds from sales of property, plant and
equipment. Net cash used in investing activities was $997 million in 1998
primarily due to $975 million from purchases of property, plant and equipment.
Net cash used in financing activities was $101 million in 2000 primarily due to
$375 million in payments on debt and capital lease obligations offset by $136
million in proceeds from borrowing activities, $123 million in proceeds from
issuance of stock and $15 million in
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Source: ADVANCED MICRO DEVIC, 10-K405, March 20, 2001