AMD 2001 Annual Report Download - page 206

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
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FINANCIAL CONDITION
Net cash provided by operating activities was $168 million in 2001 as a result
of our net loss of $61 million, adjusted for non-cash charges, including, $623
million of depreciation and amortization expense, $82 million of restructuring
charges, $27 million of impairment charges on equity investments and $10 million
of provision for doubtful accounts, offset by non-cash credits of $93 million
from net changes in deferred income taxes and foreign grant and subsidy income,
and other uses of cash in operating activities of approximately $428 million due
to net changes in operating assets and liabilities.
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 $140
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 $160 million
from deferred income taxes, an increase of $241 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 and a decrease of $48 million in accounts
receivable.
Net cash used in investing activities was $554 million in 2001 primarily due to
$679 million used for the purchases of property, plant, and equipment, primarily
for Dresden Fab 30 and Asia manufacturing facilities, and $122 million for
additional equity investments in FASL, offset by $246 million of net proceeds
from sales and maturities of available-for-sale securities.
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 provided by financing activities was $232 million in 2001 primarily due
to $63 million in proceeds from the issuance of notes payable to banks, $308
million in proceeds from Dresden borrowing activities, $38 million in proceeds
from the receipt of foreign grants and subsidies and
Source: ADVANCED MICRO DEVIC, 10-K, March 07, 2002