AMD 2010 Annual Report Download - page 70

Investing Activities
Net cash used in investing activities was $1.1 billion in 2010. The cash flow effect of the deconsolidation of
GF was an outflow of $904 million, which consisted of GF’s cash and cash equivalents. In addition, we had a net
cash outflow of $147 million for purchases of property, plant and equipment and of $160 million for purchases of
available-for-sale securities. The net cash outflows were partially offset by a net cash inflow of $69 million from
the sale of trading securities.
Net cash used in investing activities was $1.3 billion in 2009 primarily as a result of a net cash outflow of
$883 million for the purchase of available-for-sale securities and $466 million for purchases of property, plant
and equipment, of which $394 million related to property, plant and equipment attributable to the Foundry
segment. This was partially offset by $58 million of proceeds from sale of certain Handheld assets and $14
million of proceeds from the maturity of trading securities.
Net cash used in investing activities was $27 million in 2008. A cash outflow of $624 million for purchases
of 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.
Financing Activities
Net cash provided by financing activities was $484 million in 2010 primarily as a result of proceeds of $988
million from our financing arrangements with the IBM Parties, $490 million from the sale and issuance of $500
million aggregate principal amount of the 7.75% Notes, $19 million in proceeds from foreign grants from the
Canadian government for research and development activities related to our Fusion products and from the
Malaysian and Chinese governments for our local microprocessor assembly, test and packaging facilities and $15
million from the exercise of employee stock options. These amounts were partially offset by payments of $1,011
million to repurchase $1,016 million aggregate principal amount of our 6.00% Notes. During 2010, 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 $1.5 billion in 2009 primarily as a result of proceeds of $2.3
billion from the issuance of GF’s Class A Notes, Class B Notes, Class A Preferred Shares and Class B Preferred
Shares, of which $1.6 billion constituted cash proceeds to GF, proceeds of $605 million from the sale of certain
of our accounts receivable to the IBM Parties pursuant to the financing arrangement described above, proceeds of
$440 million from the issuance of $500 million aggregate principle of 8.125% Notes, proceeds of $15 million
from the AMD China Revolving Credit Line, proceeds of $125 million from the sale of 58 million shares of
AMD common stock and warrants to purchase 35 million shares of AMD common stock at an exercise price of
$0.01 per share to WCH in connection with the formation of the GF manufacturing joint venture, and proceeds
from grants and allowances from the Federal Republic of Germany and the State of Saxony of $55 million for
GF’s Dresden manufacturing facilities. These amounts were partially offset by payments to Leipziger Messe of
$180 million to repurchase its partnership interests in AMD Fab 36 KG, $67 million related to the guaranteed
rate of return on those partnership interests and $10 million related to a call option premium to Leipziger Messe
for the early repurchase of its partnership interests. Net cash provided by financing activities was also partially
offset by $1.8 billion of payments on certain debt and cash obligations, consisting of $1,002 million to
repurchase $1,015 million aggregate principal amount of our 5.75% Notes, $398 million to redeem $390 million
aggregate principal amount of our 7.75% Notes and $161 million to repurchase $344 million aggregate principal
amount of our 6.00% Notes. During 2009, 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 $220 million in 2008, primarily due to proceeds of $308
million from the financing arrangement with the IBM Parties described above and proceeds of grants and
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