AMD 2008 Annual Report Download - page 81

Net cash provided by operating activities was approximately $1.3 billion in 2006. Our net loss of $166
million was adjusted for non-cash charges consisting primarily of $837 million of depreciation and amortization
expense, $416 million for the write-off of in-process research and development expenses related to the ATI
acquisition, stock-based compensation expense of $77 million, and $45 million related to an equity interest in the
net loss of Spansion. These charges were partially offset by amortization of foreign grants and subsidies of $151
million. The net changes in our operating assets at December 31, 2006 compared to December 25, 2005 included
an increase of $530 million in accounts payable and accrued liabilities, partially offset by a decrease in payables
to related parties of $229 million and an increase of $175 million in other assets. The increase in accounts
payable and accrued liabilities was primarily related to higher purchases of raw materials, technology license
payment obligations, and marketing accruals due to increased operations in the Computing Solutions segment.
The decrease in payables to related parties is a result of our no longer shipping products and invoicing customers
on behalf of Spansion after the second quarter of 2006. Prior to the second quarter of 2006, we shipped products
to and invoiced Spansion’s customers in our name on behalf of Spansion and remitted the receipts to Spansion.
The increase in other assets was primarily due to purchases of new technology licenses.
Investing Activities
Net cash used in investing activities was $27 million in 2008. Payments of $624 million of cash used to
purchase property, plant and equipment and $95 million in connection with the exercise of our call option to
repurchase the partnership interests in AMD Fab 36 KG held by one of the unaffiliated partners, Fab 36
Beteiligungs GmbH & Co. KG, were partially offset by $343 million of proceeds from the sale of property, plant
and equipment, primarily 200-millimeter equipment, $216 million in net proceeds from the sale and maturity of
available-for-sale securities and $127 million of cash proceeds from sale of our Digital Television business unit.
Of the total purchase price of $141.5 million, $14 million was held in escrow as of December 27, 2008. We are
eligible to receive this amount within 18 months after the completion of the transaction, subject to specified
conditions.
Net cash used in investing activities was approximately $1.7 billion in 2007. We used $1.7 billion to
purchase property, plant and equipment, including approximately $691 million to purchase equipment for Fab 36.
We also purchased $545 million in available-for-sale securities. This was offset primarily by $307 million in
proceeds from sales and maturities of available-for-sale securities, $157 million in proceeds from sales of
Spansion shares, and $73 million from sales of assets, including excess land in Sunnyvale, California and
customer deposits on the sale of 200-millimeter wafer fabrication equipment.
Net cash used in investing activities was approximately $4.3 billion in 2006. We used $3.9 billion, net of
cash and cash equivalents acquired, to acquire ATI, and $1.9 billion to purchase property, plant and equipment,
including approximately $987 million to purchase equipment for Fab 36. This was partially offset by a net cash
inflow of $947 million from sales and maturities of available-for-sale securities, $278 million from sales of
Spansion shares, and $175 million of proceeds from Spansion’s repurchase of its 12.75% Senior Subordinated
Notes due 2016.
Financing Activities
Net cash provided by financing activities was $220 million in 2008, primarily due to proceeds of $308
million from our accounts receivable arrangement with IBM Credit LLC and proceeds of grants and allowances
from the Federal Republic of Germany and the State of Saxony of $121 million for the Fab 36 project and $40
million for the Fab 38 project. See “Contractual Obligations—Receivable Financing Arrangement Classified as
Other Short-Term Obligations” below, for additional information. These amounts were partially offset by $166
million of payments on certain debt and cash obligations consisting of $20 million for the repurchase of $60
million principal amount of our 6.00% Notes, $38 million for the exercise of our call option to repurchase the
silent partnership contributions in AMD Fab 36 KG held by Fab 36 Beteiligungs GmbH & Co. KG, $25 million
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