AMD 2004 Annual Report Download - page 77

Table of Contents
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Years Ended December 26, 2004
2004 2003 2002
(In thousands)
Cash flows from operating activities:
Net income (loss) $ 91,156 $ (274,490) $ (1,303,012)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Minority interest in loss of subsidiary (18,663) (44,761) —
Depreciation 1,173,598 955,560 739,608
Amortization 50,654 40,103 16,561
Provision for doubtful accounts (2,821) 1,752 (364)
Other than temporary impairment of equity investments — 2,339 4,654
(Benefit) Provision for deferred income taxes (39,240) 2,971 35,427
Restructuring and other special charges (recoveries), net 5,456 (9,994) 311,250
Charge from induced conversion of 4.5% Notes (See Note 7) 31,767 — —
Interest expense paid with stock 3,769 — —
Charge for early extinguishment of Dresden Term Loan 6,012 — —
Foreign grant and subsidy income (87,485) (75,302) (59,324)
Gain from partial sale of net assets to Spansion LLC (see Note 3) — (5,681) —
Net loss on equipment sale and lease back transaction (see Note 7) — 16,088 —
Net (gain) loss on disposal of property, plant and equipment (3,775) 3,862 11,930
Net (gain) loss realized on sale of available-for-sale securities (7,464) (3,736) (5,334)
Compensation recognized under employee stock plans 1,014 1,920 2,891
Undistributed income of joint venture — (5,913) (6,177)
Recognition of deferred gain on sale of building (1,681) (1,681) (1,681)
Tax benefit (expense) allocated to minority interest 5,938 (1,766) —
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable (171,769) 67,877 266,393
Decrease (increase) in accounts receivable from related party 21,904 (187,898) —
Increase in inventories (179,981) (77,426) (51,975)
Decrease (increase) in prepaid expenses 35,062 70,247 (31,848)
Increase in other assets (21,061) (12,614) (100,221)
(Increase) decrease in tax refund receivable (12,600) (6,555) 63,384
Increase (decrease) in taxes payable 5,775 19,882 (34,988)
Refund of customer deposits under long-term purchase agreements (20,500) (26,500) (39,000)
Net increase (decrease) in payables and accrued liabilities 234,532 (192,848) 61,863
(Decrease) increase in payables and accrued liabilities to related party (13,076) 40,150 —
Net cash provided by (used in) operating activities 1,086,521 295,586 (119,963)
Cash flows from investing activities:
Purchases of property, plant and equipment (1,440,137) (570,316) (705,147)
Net cash acquired from formation and consolidation of Spansion LLC — 147,616 —
Proceeds from sale of property, plant and equipment 34,183 29,939 8,618
Acquisitions, net of cash acquired — (6,265) (26,509)
Purchases of available-for-sale securities (377,087) (1,029,884) (4,465,252)
Proceeds from sale and maturities of available-for-sale securities 227,257 1,512,093 4,333,901
Net cash (used in) provided by investing activities (1,555,784) 83,183 (854,389)
Cash flows from financing activities:
Proceeds from notes payable to banks — 7,350 121,251
Proceeds from borrowings, net of issuance costs 745,377 — 1,006,027
Proceeds from borrowings from related party (see Note 3) — 40,000 —
Repayments of debt and capital lease obligations (897,619) (140,933) (324,744)
Proceeds from foreign grants and subsidies 30,110 155,349 75,727
Proceeds from sale leaseback transactions (see Note 7) 59,531 244,647 —
Proceeds from limited partners’ contribution (see Note 7) 127,916 — —
Change in compensating balance 223,808 (74,447) —
Proceeds from issuance of stock 123,677 35,436 29,179
Net cash provided by financing activities 412,800 267,402 907,440
Effect of exchange rate changes on cash and cash equivalents 6,657 32,173 22,884
Net (decrease) increase in cash and cash equivalents (49,806) 678,344 (44,028)
Cash and cash equivalents at beginning of year 968,183 289,839 333,867
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Source: ADVANCED MICRO DEVIC, 10-K, March 01, 2005