AMD 2001 Annual Report Download - page 196

EXHIBIT 13
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
The statements in this Management's Discussion and Analysis of Financial
Condition and Results of Operations that are forward-looking are based on
current expectations and beliefs and involve numerous risks and uncertainties
that could cause actual results to differ materially from expectations. The
forward-looking statements relate to, among other things: operating results;
anticipated cash flows; capital expenditures; gross margins; adequacy of
resources to fund operations and capital investments; our ability to produce AMD
Athlon(TM) and AMD Duron(TM) microprocessors with the performance and in the
volume required by customers on a timely basis; our ability to maintain average
selling prices of seventh-generation microprocessors despite aggressive
marketing and pricing strategies of our competitors; the ability of third
parties to provide timely infrastructure solutions (motherboards and chipsets)
to support our microprocessors; our ability to increase customer and market
acceptance of our seventh- and eighth-generation microprocessors; a recovery in
the communication and networking industries leading to an increase in the demand
for Flash memory products; the effect of foreign currency hedging transactions;
the process technology transition in our submicron integrated circuit
manufacturing and design facility in Dresden, Germany (Dresden Fab 30); and the
financing, construction and utilization of the Fujitsu AMD Semiconductor Limited
(FASL) manufacturing facilities. See "Financial Condition" and "Risk Factors"
below, as well as such other risks and uncertainties as are detailed in our
other Securities and Exchange Commission reports and filings for a discussion of
the factors that could cause actual results to differ materially from the
forward-looking statements.
The following discussion should be read in conjunction with the consolidated
financial statements and related notes as of December 30, 2001 and December 31,
2000 and for each of the three years in the period ended December 30, 2001,
which are included in this annual report.
AMD, the AMD Arrow logo, and combinations thereof, Advanced Micro Devices,
AMD-K6, AMD Athlon, AMD Duron and MirrorBit are either trademarks or registered
trademarks of Advanced Micro Devices, Inc. Vantis is a trademark of Vantis
Corporation. Legerity is a trademark of Legerity, Inc. Microsoft and Windows are
either registered trademarks or trademarks of Microsoft Corporation. Other terms
used to identify companies and products may be trademarks of their respective
owners.
CRITICAL ACCOUNTING POLICIES
Our discussion and analysis of our financial condition and results of operations
are based upon our consolidated financial statements, which have been prepared
in accordance with accounting principles generally accepted in the United
States. The preparation of these financial statements requires us to make
estimates and judgments that affect the reported amounts of assets, liabilities,
revenues and expenses and related disclosure of contingent assets and
liabilities. On an on-going basis, we evaluate our estimates, including those
related to our investments, allowance for doubtful accounts, revenues,
inventories, asset impairments, income taxes, commitments and contingencies. We
base our estimates on historical experience and on various other assumptions
that are believed to be reasonable under the circumstances, the results of
Source: ADVANCED MICRO DEVIC, 10-K, March 07, 2002