AMD 2015 Annual Report Download - page 62

FINANCIAL CONDITION
Liquidity
Our cash and cash equivalents and marketable securities consisted of money market funds and commercial
paper. As of December 26, 2015, our cash, cash equivalents and marketable securities of $785 million were
lower compared to $1.0 billion as of December 27, 2014. The decrease was primarily due to lower sales and the
timing of related collections and the timing of accounts payable payments made. During 2015, we used $96
million for purchases of property, plant and equipment. The percentage of cash and cash equivalents held
domestically was 88% as of December 26, 2015 and 89% as of December 27, 2014.
Our debt and capital lease obligations as of December 26, 2015 were $2.3 billion as compared to $2.2
billion as of December 27, 2014. During 2015, we received $100 million net proceeds from our Secured
Revolving Line of Credit, of which $42 million was used to repay the remaining aggregate principal amount of
our 6.00% Notes.
We believe our cash and cash equivalents balance along with the savings from our restructuring plans and
our Secured Revolving Line of Credit will be sufficient to fund operations, including capital expenditures, over
the next 12 months. We believe that in the event we decide to obtain external funding, we may be able to access
the capital markets on terms and in amounts adequate to meet our objectives.
Over the longer term, should additional funding be required, such as to meet payment obligations of our
long-term debt when due, we may need to raise the required funds through borrowings or public or private sales
of debt or equity securities, which may be issued from time to time under an effective registration statement,
through the issuance of securities in a transaction exempt from registration under the Securities Act of 1933, as
amended, or a combination of one or more of the foregoing. Uncertain global economic conditions have in the
past adversely impacted, and may in the future adversely impact, our business. If market conditions deteriorate,
we may be limited in our ability to access the capital markets to meet liquidity needs on favorable terms or at all,
which could adversely affect our liquidity and financial condition, including our ability to refinance maturing
liabilities.
Operating Activities
Net cash used in operating activities was $226 million in 2015 compared to $98 million in 2014. The
increase in cash used in operating activities was primarily due to lower cash collections during 2015 compared
2014 driven by lower sales compared to 2014, partially offset by lower other operating expenses and labor cost as
a result of restructuring actions and the absence of the final $200 million cash payment made in the first quarter
of 2014 related to GF’s waiver of a portion of our obligations for wafer purchase commitments.
Net cash used in operating activities was $98 million in 2014 compared to $148 million in 2013. The
decrease in cash used in operating activities was primarily due to higher cash collections during 2014 compared
2013 driven by slightly higher sales compared to 2013, partially offset by the $113 million prepayments to GF in
the fourth quarter of 2014.
Investing Activities
Net cash provided by investing activities was $147 million in 2015, which consisted of a net cash inflow of
$235 million from purchases, sales and maturities of available for sale securities, partially offset by a net cash
outflow of $88 million for purchases and sales of property, plant and equipment.
Net cash used in investing activities was $12 million in 2014, which consisted of a cash outflow of $95
million for purchases of property, plant and equipment, offset by a net cash inflow of $83 million from
purchases, sales and maturities of available for sale securities.
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