AMD 2008 Annual Report Download - page 82

for the mandatory repurchase of a portion of the silent partnership contributions in AMD Fab 36 KG held by
Leipziger Messe and $19 million in payments for the guaranteed return on the unaffiliated limited partners’
limited partnership contributions. During 2008, we did not realize any excess tax benefit related to stock-based
compensation. Therefore, we did not record any related financing cash flows.
Net cash provided by financing activities was approximately $2.0 billion in 2007 and consisted primarily of
proceeds of: $2.2 billion from the issuance and sale of our 6.00% Notes during the second quarter of 2007; $1.5
billion from the issuance and sale of our 5.75% Notes during the third quarter of 2007; $608 million from the
sale of our common stock to a wholly-owned subsidiary of Mubadala Development Company in the fourth
quarter of 2007; $78 million from the sale of stock under our Employee Stock Purchase Plan and the exercise of
employee stock options; and $223 million of capital investment grants and allowances received from the Federal
Republic of Germany and the State of Saxony, chiefly for the Fab 36 project. These proceeds were partially
offset by the $2.2 billion repayment of our October 2006 Term Loan, a payment of $182 million for the purchase
of a capped call in connection with the issuance of our 6.00% Notes and a payment of $46 million for our
mandatory repurchase of silent partner contributions from our unaffiliated partners in AMD Fab 36 KG. During
2007, we did not realize any excess tax benefit related to stock-based compensation. Therefore, we did not record
any related financing cash flow.
Net cash provided by financing activities was approximately $3.8 billion in 2006, and consisted primarily of
proceeds of: $3.4 billion from borrowings under the October 2006 Term Loan and the Fab 36 Term Loan;
proceeds of $495 million from the sale of our common stock in an equity offering; $231 million from the sale of
stock under our Employee Stock Purchase Plan and the exercise of employee stock options; and capital
investment grants and allowances from the Federal Republic of Germany and the State of Saxony for the Fab 36
project of $210 million. These amounts were offset by $539 million in payments on debt and capital lease
obligations, primarily due to our redemption of 35 percent of the aggregate principal amount outstanding (or
$210 million) of our 7.75% Notes, and $284 million to repay a portion of the amount outstanding under the
October 2006 Term Loan. During 2006, we did not realize any excess tax benefits related to stock-based
compensation. Therefore, we did not record any related financing cash flow.
Liquidity
We believe that our current cash, cash equivalents and marketable securities balances at December 27, 2008,
anticipated cash flow from operations and available external financing will be sufficient to fund our operations
and capital investments over the next twelve months. We anticipate that capital expenditures for 2009 will
consist of approximately $760 million of The Foundry Company’s capital expenditures, which include
anticipated expenditures related to Fab 38 and a planned new wafer fabrication facility on the Luther Forest
Technology Campus in Saratoga County, New York, and $150 million of capital expenditures for which we will
have responsibility for aggregate consolidated capital expenditures of approximately $910 million.
During 2008, our cash, cash equivalents and marketable securities balance decreased from $1.9 billion in
2007 to $1.1 billion in 2008 primarily due to the losses that were incurred in 2008.
We have taken and plan to continue to undertake a number of actions to decrease our expenses. For
example, in the second and fourth fiscal quarters of 2008 we implemented restructuring plans to reduce our
expenses. The plans primarily involve the termination of employees. In addition, the restructuring plan
implemented in the fourth fiscal quarter of 2008 involves additional cost reduction actions, including contract or
program terminations and facility site consolidations and closures that either have taken place during the fourth
fiscal quarter of 2008 or will take place in 2009. We also plan to reduce our manufacturing output in order to
control our inventory levels. For 2008 our restructuring charges were $90 million, of which approximately $28
million will result in cash expenditures in 2009. As a result of the 2008 restructuring activities, we expect that
our cash savings in 2009 will be approximately $110 million.
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