AMD 2012 Annual Report Download - page 66

December 29, 2012 compared to December 31, 2011 included a decrease in accounts receivable of $290 million
and an increase in inventories of $83 million, which were primarily due to lower sales during 2012. During 2012,
our payable to GF, which included all amounts that we owe to GF, increased by $277 million. The increase was
due to cash obligations of $240 million related to the third amendment to the WSA and $175 million related to
the limited waiver of exclusivity from GF, offset by a decrease of $138 million in the amount of billings related
to wafer purchases. Accounts payable, accrued liabilities and other decreased by $232 million primarily due to a
$94 million decrease in accrued liabilities, a $92 million decrease in accounts payable and other current
liabilities, a $23 million decrease in other liabilities, a $15 million decrease in deferred income on shipments to
distributors and a $6 million decrease in accrued compensation and benefits.
Net cash provided by operating activities was $382 million in 2011. Net income of $491 million was
adjusted for non-cash charges consisting primarily of $317 million of depreciation and amortization expense, a
$209 million impairment charge on our investment in GF, $90 million of stock based compensation expense, and
$21 million of non-cash interest expense related to our 6.00% Notes and our 8.125% Notes. These charges were
partially offset by recognition of a non-cash gain of $492 million due to the dilution of our equity interest in GF.
The net changes in operating assets at December 31, 2011 compared to December 25, 2010 included an increase
in accounts receivable of $347 million, which included the non-cash impact of our previous financing
arrangements with the IBM Parties. During 2011, the IBM Parties collected approximately $396 million from our
distributor customers pursuant to these arrangements. Without considering the collection by the IBM Parties of
the accounts receivables that we sold to them, our accounts receivable decreased $49 million. This decrease was
primarily due to timing of sales and collections during 2011. There was also a decrease in prepaid expenses and
other assets of $115 million primarily due to the receipt of the final settlement payment from Samsung of $117
million.
Net cash used in operating activities was $412 million in 2010. Net income of $471 million was adjusted for
non-cash charges consisting primarily of a $462 million loss from the application of the equity method of
accounting for our investment in GF, $383 million of depreciation and amortization expense, $87 million of
stock-based compensation expense, $30 million of interest expense related to our 6.00% Notes and our 8.125%
Notes and a $24 million net loss related to our repurchase of an aggregate of $1,016 million principal amount of
our 6.00% Notes for $1,011 million in cash. These charges were partially offset by a non-cash gain of $325
million related to the deconsolidation of GF, amortization of foreign grants of $16 million and a net gain of $17
million from the sale of marketable securities. The net changes in operating assets at December 25, 2010
compared to December 26, 2009 included an increase in accounts receivable of $1,138 million, which included
the non-cash impact of our financing arrangement with the IBM Parties. During 2010, the IBM Parties collected
approximately $915 million from our distributor customers pursuant to these arrangements. Without considering
the collection by the IBM Parties of the accounts receivables that we sold to them, our accounts receivable
increased $223 million. This increase was primarily due to the introduction and sale of new products towards the
end of 2010 and the timing of the related collections. Excluding the effects of the deconsolidation of GF, there
was also a decrease in accounts payable, accrued liabilities and other of $184 million, primarily due to the timing
of payments. Accounts payable to GF increased by $55 million due to the timing of payments during 2010.
Investing Activities
Net cash used in investing activities was $19 million in 2012. We had a net cash inflow of $404 million
from purchase, sale and maturity of available-for-sale securities, partially offset by a net cash outflow of $281
million related to the acquisition of SeaMicro, a cash outflow of $133 million for purchases of property, plant
and equipment and a cash outflow of $9 million related to other investing activities.
Net cash used in investing activities was $113 million in 2011. We had a net cash outflow of $234 million
for the purchase and sale of property, plant and equipment, and payments of $17 million for professional services
related to the contribution of GFS to GF. The net cash outflows were partially offset by a net cash inflow of $140
million from purchase, sale, and maturity of available-for-sale securities.
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