AMD 2006 Annual Report Download - page 112

Table of Contents
closure of duplicate facilities. The Company estimated costs associated with employee severance and relocation totaled $7 million. The Company estimated costs
associated with the closure of duplicate facilities to be $1 million. These costs were included as a component of net assets acquired. Additionally, the integration
plan also included termination of some AMD employees, cancellation of some existing contractual obligations, and other costs to integrate the operations of the
two companies. The Company estimated these costs to be $32 million for the year ended December 31, 2006, and they are included in the caption, “Amortization
of acquired intangible assets and integration charges,” on the Company’s consolidated statements of operations.
Unaudited Pro Forma Financial Information
The following unaudited pro forma statement of operations information gives effect to the ATI acquisition as if it had occurred at the beginning of each of
the fiscal years presented. The pro forma information is presented for informational purposes only and is not indicative of the results of operations that would
have been achieved if the acquisition and the $2.5 billion October 2006 Term Loan had taken place at the beginning of each of the periods presented nor is it
indicative of future financial performance. The pro forma financial information for each of the periods presented includes the nonrecurring business combination
accounting effect on ATI inventories acquired, write off of in-process research and development and integration charges as well as the recurring effect from
amortization of acquired intangible assets, stock-based compensation charges for unvested stock awards assumed and increase in interest expense associated with
the October 2006 Term Loan.
The unaudited pro forma statement of operations for the year ended December 31, 2006 combined the historical results of AMD for the year ended
December 31, 2006, which includes post-acquisition ATI results for the period from October 25, 2006 to December 31, 2006, and the historical results of
pre-acquisition ATI for the period from January 1, 2006 to October 24, 2006. The unaudited pro forma statement of operations for the year ended December 25,
2005 combines the historical results of AMD for the year ended December 25, 2005 and, due to differences in our reporting periods, the historical results of ATI,
for the twelve months ended November 30, 2005.
Year Ended
December 31,
2006
December 25,
2005
(In millions, except
per share data)
Total net revenue $ 7,579 $ 8,047
Net loss $ (716) $ (938)
Basic net loss per common share $ (1.33) $ (2.05)
Diluted net loss per common share $ (1.33) $ (2.05)
Goodwill and Acquisition Related Intangible Assets
The following is the ATI goodwill by segment as of October 25, 2006 and December 31, 2006:
Graphics and
Chipsets
Segment
Consumer
Electronics
Segment Total
(In millions)
ATI acquisition goodwill $ 1,237 $ 1,980 $ 3,217
Approximately $2,601 million of the goodwill is expected to be deductible for tax purposes.
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Source: ADVANCED MICRO DEVIC, 10-K, March 01, 2007