HispanicBusiness

ADVANCED MICRO DEVICES, INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Millions except per share amounts and percentages)                               Quarter Ended                Year Ended                      -------------------------------  --------------------                       Dec. 29,   Sep. 29,   Dec. 31,   Dec. 29,   Dec. 31,                         2012       2012       2011       2012       2011                      ---------  ---------  ---------  ---------  ---------Net revenue           $   1,155  $   1,269  $   1,691  $   5,422  $   6,568Cost of sales               977        877        918      4,187      3,628                      ---------  ---------  ---------  ---------  ---------Gross margin                178        392        773      1,235      2,940Gross margin %               15%        31%        46%        23%        45%Research and development                313        328        358      1,354      1,453Marketing, general and administrative         193        188        243        823        992Amortization of acquired intangible assets                       4          4          3         14         29Restructuring charges, net                90          3         98        100         98                      ---------  ---------  ---------  ---------  ---------Operating income (loss)                    (422)      (131)        71     (1,056)       368Interest income               2          2          2          8         10Interest expense            (45)       (44)       (43)      (175)      (180)Other income (expense), net              (4)        16       (207)         6       (199)                      ---------  ---------  ---------  ---------  ---------Loss before dilution gain in investee and income taxes              (469)      (157)      (177)    (1,217)        (1)Provision (benefit) for income taxes             4          -         (4)       (34)        (4)Dilution gain in investee, net                -          -          -          -        492                      ---------  ---------  ---------  ---------  ---------Income (loss) from continuing operations                (473)      (157)      (173)    (1,183)       495                      ---------  ---------  ---------  ---------  ---------Loss from discontinued operations, net of tax                          -          -         (4)         -         (4)                      ---------  ---------  ---------  ---------  ---------Net income (loss)     $    (473) $    (157) $    (177) $  (1,183) $     491Net income (loss) per share   Basic      Continuing       operations     $   (0.63) $   (0.21) $   (0.24) $   (1.60) $    0.68      Discontinued       operations             -          -      (0.01)         -      (0.01)                      ---------  ---------  ---------  ---------  ---------   Basic net income    (loss) per share  $   (0.63) $   (0.21) $   (0.24) $   (1.60) $    0.68   Diluted      Continuing       operations     $   (0.63) $   (0.21) $   (0.24) $   (1.60) $    0.67      Discontinued       operations             -          -      (0.01)         -  $   (0.01)                      ---------  ---------  ---------  ---------  ---------   Diluted net income    (loss) per share  $   (0.63) $   (0.21) $   (0.24) $   (1.60) $    0.66Shares used in per share calculation   Basic                    747        745        732        741        727   Diluted                  747        745        732        741        742                      ---------  ---------  ---------  ---------  ---------ADVANCED MICRO DEVICES, INC.CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)(Millions)                               Quarter Ended                Year Ended                      -------------------------------  --------------------                       Dec. 29,   Sep. 29,   Dec. 31,   Dec. 29,   Dec. 31,                         2012       2012       2011       2012       2011                      ---------  ---------  ---------  ---------  ---------Total comprehensive income (loss)        $    (475) $    (154) $    (172) $  (1,181) $     486ADVANCED MICRO DEVICES, INC.CONDENSED CONSOLIDATED BALANCE SHEETS(Millions)                                            Dec. 29,  Sep. 29,  Dec. 31,                                              2012      2012      2011                                           --------- --------- ---------AssetsCurrent assets:   Cash, cash equivalents and marketable    securities                             $   1,002 $   1,300 $   1,765   Accounts receivable, net                      630       683       919   Inventories, net                              562       744       476   Prepaid expenses and other current    assets                                        71        88        69                                           --------- --------- ---------         Total current assets                  2,265     2,815     3,229Long-term marketable securities                  181       180       149Property, plant and equipment, net               658       685       726Investment in GLOBALFOUNDRIES                      -         -       278Acquisition related intangible assets, net        96       100         8Goodwill                                         553       553       323Other assets                                     247       279       241                                           --------- --------- ---------Total Assets                               $   4,000 $   4,612 $   4,954                                           ========= ========= =========Liabilities and Stockholders' EquityCurrent liabilities:   Accounts payable                        $     278 $     412 $     363   Payable to GLOBALFOUNDRIES                    454       448       177   Accrued liabilities                           489       534       550   Deferred income on shipments to    distributors                                 108       110       123   Current portion of long-term debt and    capital lease obligations                      5         5       489   Other current liabilities                      63        46        72                                           --------- --------- ---------         Total current liabilities             1,397     1,555     1,774Long-term debt and capital lease obligations, less current portion             2,037     2,035     1,527Other long-term liabilities                       28        33        63Stockholders' equity:   Capital stock:      Common stock, par value                      7         7         7      Additional paid-in capital               6,803     6,780     6,672      Treasury stock, at cost                   (109)     (109)     (107)   Accumulated deficit                        (6,160)   (5,687)   (4,977)   Accumulated other comprehensive loss           (3)       (2)       (5)                                           --------- --------- ---------         Total stockholders' equity              538       989     1,590                                           --------- --------- ---------Total Liabilities and Stockholders' Equity $   4,000 $   4,612 $   4,954                                           ========= ========= =========ADVANCED MICRO DEVICES, INC.CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS(Millions)                                                        Quarter      Year                                                         Ended      Ended                                                       ---------  ---------                                                        Dec. 29,   Dec. 29,                                                          2012       2012                                                       ---------  ---------Cash flows from operating activities:   Net loss                                            $    (473) $  (1,183)   Adjustments to reconcile net loss to net cash used    in operating activities:      Non-cash portion of the limited waiver of       exclusivity from GLOBALFOUNDRIES                        -        278      Depreciation and amortization                           66        260      Benefit for deferred income taxes                        1        (40)      Compensation recognized under employee stock       plans                                                  23         97      Non-cash interest expense                                6         23      Impairment charge on certain marketable       securities                                              4          4      Other                                                    4          3   Changes in operating assets and liabilities:      Accounts receivable                                     53        290      Inventories                                            183        (83)      Prepaid expenses and other current assets               10        (20)      Other assets                                             1        (12)      Payable to GLOBALFOUNDRIES                               6        277      Accounts payable, accrued liabilities and other       (170)      (232)                                                       ---------  ---------Net cash used in operating activities                  $    (286) $    (338)                                                       ---------  ---------Cash flows from investing activities:   Acquisition of SeaMicro, Inc., net of cash acquired         -       (281)   Purchases of property, plant and equipment                (22)      (133)   Purchases of available-for-sale securities               (195)      (944)   Proceeds from sale and maturity of available-for-    sale securities                                          257      1,348   Other                                                      14         (9)                                                       ---------  ---------Net cash provided by (used in) investing activities    $      54  $     (19)                                                       ---------  ---------Cash flows from financing activities:   Net proceeds from debt issuance                             -        491   Net proceeds from foreign grants                            5         23   Proceeds from issuance of AMD common stock                  2         14   Repayments of debt and capital lease obligations           (1)      (489)   Other                                                      (1)        (2)                                                       ---------  ---------Net cash provided by financing activities              $       5  $      37                                                       ---------  ---------Net decrease in cash and cash equivalents                   (227)      (320)                                                       ---------  ---------Cash and cash equivalents at beginning of period       $     776  $     869                                                       ---------  ---------Cash and cash equivalents at end of period             $     549  $     549                                                       ---------  ---------ADVANCED MICRO DEVICES, INC.SELECTED CORPORATE DATA(Millions except headcount)                              Quarter Ended                 Year Ended------------------------------------------------------ ---------------------Segment and Category  Dec. 29,    Sep. 29,   Dec. 31,   Dec. 29,   Dec. 31, Information            2012        2012       2011       2012       2011------------------------------------------------------ ---------------------Computing Solutions (1)  Net revenue       $       829  $     927  $   1,309  $   4,005  $   5,002  Operating income   (loss)           $      (323) $    (114) $     165  $    (231) $     556Graphics (2)  Net revenue               326        342        382      1,417      1,565  Operating income           22         18         27        105         51All Other (3)  Net revenue                 -          -          -          -          1  Operating loss           (121)       (35)      (121)      (930)      (239)Total  Net revenue       $     1,155  $   1,269  $   1,691  $   5,422  $   6,568  Operating income   (loss)           $      (422) $    (131) $      71  $  (1,056) $     368------------------------------------------------------ ---------------------Other Data--------------------  Depreciation and   amortization   (excluding   amortization of   acquired   intangible   assets)          $        62  $      62  $      67  $     247  $     288  Capital additions $        22  $      32  $      87  $     133  $     250  Adjusted EBITDA   (4)              $        30  $     (35) $     260  $     389  $     902  Cash, cash   equivalents and   marketable   securities (5)   $     1,183  $   1,480  $   1,914  $   1,183  $   1,914  Adjusted free cash   flow (6)         $      (308) $    (272) $     100  $    (471) $     528  Total assets      $     4,000  $   4,612  $   4,954  $   4,000  $   4,954  Long-term debt and   capital lease   obligations,   including current   portion          $     2,042  $   2,040  $   2,016  $   2,042  $   2,016  Headcount              10,340     11,813     11,093     10,340     11,093------------------------------------------------------ ---------------------See footnotes on the next page(1) Computing Solutions segment includes microprocessors, as standalone    devices or as incorporated as an Accelerated Processing Unit, chipsets,    and embedded processors.(2) Graphics segment includes graphics, video and multimedia products    developed for use in desktop and notebook computers, including home    media PCs, professional workstations and servers as well as revenue    received in connection with the development and sale of game console    systems that incorporate the Company's graphics technology.(3) All Other category includes certain expenses and credits that are not    allocated to any of the operating segments. Also included in this    category are amortization of acquired intangible assets, stock-based    compensation expense, restructuring charges and a charge related to the    limited waiver of exclusivity from GLOBALFOUNDRIES ("GF").(4) Reconciliation of GAAP operating income (loss) to Adjusted EBITDA*                                   Quarter Ended             Year Ended                           ----------------------------  ------------------                           Dec. 29,  Sep. 29,  Dec. 31,  Dec. 29,  Dec. 31,                             2012      2012      2011      2012      2011                           --------  --------  --------  --------  --------    GAAP operating income     (loss)                $   (422) $   (131) $     71  $ (1,056) $    368      Lower of cost or       market charge       related to GF take-       or-pay obligation        273         -         -       273         -      Limited waiver of       exclusivity from GF        -         -         -       703         -      Payments to GF              -         -         -         -        24      Legal settlement            -         -         -         5         5      Depreciation and       amortization              62        62        67       247       288      Employee stock-based       compensation       expense                   23        27        21        97        90      Amortization of       acquired intangible       assets                     4         4         3        14        29      Restructuring       charges, net              90         3        98       100        98      SeaMicro acquisition       costs                      -         -         -         6         -                           --------  --------  --------  --------  --------    Adjusted EBITDA        $     30  $    (35) $    260  $    389  $    902                           ========  ========  ========  ========  ========(5) Cash, cash equivalents and marketable securities also include the long-    term portion of marketable securities.(6) Non-GAAP adjusted free cash flow reconciliation**                                   Quarter Ended             Year Ended                           ----------------------------  ------------------                           Dec. 29,  Sep. 29,  Dec. 31,  Dec. 29,  Dec. 31,                             2012      2012      2011      2012      2011                           --------  --------  --------  --------  --------    GAAP net cash provided     by (used in)     operating activities  $   (286) $   (240) $    187  $   (338) $    382      Non-GAAP adjustment         -         -         -         -       396                           --------  --------  --------  --------  --------    Non-GAAP net cash     provided by (used in)     operating activities      (286)     (240)      187      (338)      778      Purchases of       property, plant and       equipment                (22)      (32)      (87)     (133)     (250)                           --------  --------  --------  --------  --------    Non-GAAP adjusted free     cash flow             $   (308) $   (272) $    100  $   (471) $    528                           ========  ========  ========  ========  ========    * The Company presents "Adjusted EBITDA" as a supplemental measure of    its performance. Adjusted EBITDA for the Company is determined by    adjusting operating income (loss) for depreciation and amortization,    employee stock-based compensation expense and amortization of acquired    intangible assets.In addition, the Company also included the following    adjustments for the applicable period: for the fourth quarter of 2012,    the Company also included adjustments for the lower of cost or market    charge (LCM Charge) related to GF take-or-pay obligation and net    restructuring charges; for the third quarter of 2012 and the fourth    quarter of 2011, the Company also included an adjustment for net    restructuring charges; for 2012, the Company also included adjustments    for the LCM Charge, a charge related to the limited waiver of    exclusivity from GF, a legal settlement with a third party, net    restructuring charges and costs related to the acquisition of SeaMicro;    and for 2011, the Company also included adjustments related to a    payment to GF, a legal settlement with a third party and net    restructuring charges. The Company calculates and communicates Adjusted    EBITDA in the financial schedules because the Company's management    believes it is of importance to investors and lenders in relation to    its overall capital structure and its ability to borrow additional    funds. In addition, the Company presents Adjusted EBITDA because it    believes this measure assists investors in comparing its performance    across reporting periods on a consistent basis by excluding items that    the Company does not believe are indicative of its core operating    performance. The Company's calculation of Adjusted EBITDA may or may    not be consistent with the calculation of this measure by other    companies in the same industry. Investors should not view Adjusted    EBITDA as an alternative to the GAAP operating measure of operating    income (loss) or GAAP liquidity measures of cash flows from operating,    investing and financing activities. In addition, Adjusted EBITDA does    not take into account changes in certain assets and liabilities as well    as interest and income taxes that can affect cash flows.    ** The Company also presents non-GAAP adjusted free cash flow in the    earnings release as a supplemental measure of its performance. In 2008    and 2009, the Company and certain of its subsidiaries (collectively,    the "AMD Parties") entered into supplier agreements with IBM Credit LLC    and certain of its subsidiaries (collectively, the "IBM Parties").    Pursuant to these supplier agreements, the AMD Parties sold to the IBM    Parties invoices of selected distributor customers. Because the Company    does not recognize revenue until its distributors sell its products to    their customers, under GAAP, the Company classified funds received from    the IBM Parties as debt on the balance sheet. Moreover, for cash flow    purposes, these funds were classified as cash flows from financing    activities. When a distributor paid the applicable IBM Party, the    Company reduced the distributor's accounts receivable and the    corresponding debt resulted in a noncash accounting entry. Because the    Company did not receive the cash from the distributor to reduce the    accounts receivable, the distributor's payment was not reflected in the    Company's cash flows from operating activities. Non-GAAP adjusted free    cash flow for the Company was determined by adding the distributors'    payments to the IBM Parties to GAAP net cash provided by (used in)    operating activities. This amount was then further adjusted by    subtracting capital expenditures. Generally, under GAAP, the reduction    in accounts receivable is assumed to be a source of operating cash    flows. Therefore, the Company believes that treating the payments from    its distributor customers to the IBM Parties as if the Company actually    received the cash from the distributor and then used that cash to pay    down the debt is more reflective of the economic substance of the    transaction. On February 11, 2011, the Company terminated its supplier    agreements with IBM Parties. As a result, as of the end of the second    quarter of 2011, there were no outstanding invoices relating to the    financing arrangement with the IBM Parties, and starting from the third    quarter of 2011, the Company no longer makes quarterly adjustments for    distributors' payments to the IBM Parties to its GAAP net cash provided    by (used in) operating activities when calculating non-GAAP adjusted    free cash flow. The Company calculates and communicates non-GAAP    adjusted free cash flow in the financial schedules because the    Company's management believes it is of importance to investors to    understand the nature of these cash flows. The Company's calculation of    non-GAAP adjusted free cash flow may or may not be consistent with the    calculation of this measure by other companies in the same industry.    Investors should not view non-GAAP adjusted free cash flow as an    alternative to GAAP liquidity measures of cash flows from operating or    financing activities. The Company has provided reconciliations within    the press release and financial schedules of these non-GAAP financial    measures to the most directly comparable GAAP financial measures.