2015 Q4 Form 10-K Financial Statement

#000000248816000111 Filed on February 18, 2016

View on sec.gov

Income Statement

Concept 2015 Q4 2014 Q4 2014 Q3
Revenue $958.0M $1.239B $1.429B
YoY Change -22.68% -22.03% -2.19%
Cost Of Revenue $675.0M $879.0M $935.0M
YoY Change -23.21% -15.15% -0.53%
Gross Profit $283.0M $360.0M $494.0M
YoY Change -21.39% -34.9% -5.18%
Gross Profit Margin 29.54% 29.06% 34.57%
Selling, General & Admin $109.0M $144.0M $150.0M
YoY Change -24.31% -14.79% -3.23%
% of Gross Profit 38.52% 40.0% 30.36%
Research & Development $229.0M $238.0M $278.0M
YoY Change -3.78% -18.77% -3.47%
% of Gross Profit 80.92% 66.11% 56.28%
Depreciation & Amortization $34.00M $48.00M $49.00M
YoY Change -29.17% -11.11% -14.04%
% of Gross Profit 12.01% 13.33% 9.92%
Operating Expenses $338.0M $382.0M $428.0M
YoY Change -11.52% -17.32% -3.39%
Operating Profit -$49.00M -$330.0M $63.00M
YoY Change -85.15% -344.44% -33.68%
Interest Expense $41.00M $41.00M $43.00M
YoY Change 0.0% -6.82% -8.51%
% of Operating Profit 68.25%
Other Income/Expense, Net -$2.000M $4.000M -$1.000M
YoY Change -150.0% -300.0% -150.0%
Pretax Income -$92.00M -$367.0M $19.00M
YoY Change -74.93% -507.78% -62.75%
Income Tax $10.00M -$3.000M $2.000M
% Of Pretax Income 10.53%
Net Earnings -$102.0M -$364.0M $17.00M
YoY Change -71.98% -508.99% -64.58%
Net Earnings / Revenue -10.65% -29.38% 1.19%
Basic Earnings Per Share -$0.13 -$0.47 $0.02
Diluted Earnings Per Share -$0.13 -$0.47 $0.02
COMMON SHARES
Basic Shares Outstanding 791.0M shares 776.0M shares 770.0M shares
Diluted Shares Outstanding 791.0M shares 776.0M shares 785.0M shares

Balance Sheet

Concept 2015 Q4 2014 Q4 2014 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $785.0M $1.040B $938.0M
YoY Change -24.52% -5.2% -11.51%
Cash & Equivalents $785.0M $805.0M $640.0M
Short-Term Investments $235.0M $298.0M
Other Short-Term Assets $248.0M $48.00M $212.0M
YoY Change 416.67% -32.39% 152.38%
Inventory $678.0M $685.0M $897.0M
Prepaid Expenses $43.00M $32.00M
Receivables $533.0M $818.0M $973.0M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $2.320B $2.736B $3.020B
YoY Change -15.2% -5.13% 2.76%
LONG-TERM ASSETS
Property, Plant & Equipment $188.0M $302.0M $328.0M
YoY Change -37.75% -12.72% -8.38%
Goodwill $278.0M $320.0M $553.0M
YoY Change -13.13% -42.13% 0.0%
Intangibles $0.00 $65.00M $69.00M
YoY Change -100.0% -16.67% -15.85%
Long-Term Investments $0.00 $0.00 $0.00
YoY Change -100.0% -100.0%
Other Assets $298.0M $344.0M $355.0M
YoY Change -13.37% -10.88% 34.47%
Total Long-Term Assets $764.0M $1.031B $1.305B
YoY Change -25.9% -29.04% -5.3%
TOTAL ASSETS
Total Short-Term Assets $2.320B $2.736B $3.020B
Total Long-Term Assets $764.0M $1.031B $1.305B
Total Assets $3.084B $3.767B $4.325B
YoY Change -18.13% -13.14% 0.19%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $279.0M $415.0M $498.0M
YoY Change -32.77% -20.04% -13.24%
Accrued Expenses $472.0M $518.0M $555.0M
YoY Change -8.88% -2.26% 5.11%
Deferred Revenue
YoY Change
Short-Term Debt $230.0M $172.0M $97.00M
YoY Change 33.72% 212.73%
Long-Term Debt Due $230.0M $177.0M $102.0M
YoY Change 29.94% 195.0% 1940.0%
Total Short-Term Liabilities $1.403B $1.440B $1.566B
YoY Change -2.57% -11.0% -11.12%
LONG-TERM LIABILITIES
Long-Term Debt $2.007B $2.025B $2.100B
YoY Change -0.89% 1.96% 3.4%
Other Long-Term Liabilities $86.00M $105.0M $118.0M
YoY Change -18.1% -40.68% 53.25%
Total Long-Term Liabilities $2.093B $2.130B $2.218B
YoY Change -1.74% -1.53% 5.22%
TOTAL LIABILITIES
Total Short-Term Liabilities $1.403B $1.440B $1.566B
Total Long-Term Liabilities $2.093B $2.130B $2.218B
Total Liabilities $3.496B $3.570B $3.784B
YoY Change -2.07% -5.58% -2.22%
SHAREHOLDERS EQUITY
Retained Earnings -$7.306B -$6.646B -$6.282B
YoY Change 9.93% 6.46% -0.79%
Common Stock $7.025B $6.957B $6.936B
YoY Change 0.98% 0.81% 0.83%
Preferred Stock
YoY Change
Treasury Stock (at cost) $123.0M $119.0M $118.0M
YoY Change 3.36% 6.25% 6.31%
Treasury Stock Shares 14.00M shares 12.00M shares 12.00M shares
Shareholders Equity -$350.0M $187.0M $535.0M
YoY Change
Total Liabilities & Shareholders Equity $3.084B $3.767B $4.325B
YoY Change -18.13% -13.14% 0.19%

Cashflow Statement

Concept 2015 Q4 2014 Q4 2014 Q3
OPERATING ACTIVITIES
Net Income -$102.0M -$364.0M $17.00M
YoY Change -71.98% -508.99% -64.58%
Depreciation, Depletion And Amortization $34.00M $48.00M $49.00M
YoY Change -29.17% -11.11% -14.04%
Cash From Operating Activities $59.00M $116.0M $18.00M
YoY Change -49.14% 452.38% -14.29%
INVESTING ACTIVITIES
Capital Expenditures -$32.00M -$22.00M -$29.00M
YoY Change 45.45% 4.76% 93.33%
Acquisitions
YoY Change
Other Investing Activities $0.00 $65.00M $148.0M
YoY Change -100.0% -79.5% -26.37%
Cash From Investing Activities -$32.00M $43.00M $119.0M
YoY Change -174.42% -85.47% -36.02%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 3.000M 6.000M 0.000
YoY Change -50.0% -33.33% -100.0%
NET CHANGE
Cash From Operating Activities 59.00M 116.0M 18.00M
Cash From Investing Activities -32.00M 43.00M 119.0M
Cash From Financing Activities 3.000M 6.000M 0.000
Net Change In Cash 30.00M 165.0M 137.0M
YoY Change -81.82% -49.39% -34.45%
FREE CASH FLOW
Cash From Operating Activities $59.00M $116.0M $18.00M
Capital Expenditures -$32.00M -$22.00M -$29.00M
Free Cash Flow $91.00M $138.0M $47.00M
YoY Change -34.06% 228.57% 30.56%

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CY2015 us-gaap Fiscal Period
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Fiscal Year</font><font style="font-family:inherit;font-size:10pt;">.&#160;The Company uses a 52 or 53 week fiscal year ending on the last Saturday in December. Fiscal </font><font style="font-family:inherit;font-size:10pt;">2015</font><font style="font-family:inherit;font-size:10pt;">, </font><font style="font-family:inherit;font-size:10pt;">2014</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">2013</font><font style="font-family:inherit;font-size:10pt;"> ended </font><font style="font-family:inherit;font-size:10pt;">December&#160;26, 2015</font><font style="font-family:inherit;font-size:10pt;">, </font><font style="font-family:inherit;font-size:10pt;">December&#160;27, 2014</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">December&#160;28, 2013</font><font style="font-family:inherit;font-size:10pt;">, respectively, each consisted of 52 weeks.</font></div></div>
CY2015 us-gaap Loss Contingency Disclosures
LossContingencyDisclosures
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:18px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Contingencies</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Securities Class Action</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On January 15, 2014, a class action lawsuit captioned&#160;Hatamian v. AMD, et al., C.A. No. 3:14-cv-00226 (the &#8220;Hatamian Lawsuit&#8221;) was filed against the Company in the United States District Court for the Northern District of California. The complaint purports to assert claims against the Company and certain individual officers for alleged violations of Section 10(b) of the Securities Exchange Act of 1934, as amended (the Exchange Act), and Rule 10b-5 of the Exchange Act. The plaintiffs seek to represent a proposed class of all persons who purchased or otherwise acquired our common stock during the period April 4, 2011 through October 18, 2012. The complaint seeks damages allegedly caused by alleged materially misleading statements and/or material omissions by the Company and the individual officers regarding its 32nm technology and &#8220;Llano&#8221; product, which statements and omissions, the plaintiffs claim, allegedly operated to artificially inflate the price paid for the Company&#8217;s common stock during the period. The complaint seeks unspecified compensatory damages, attorneys&#8217; fees and costs. On July 7, 2014, the Company filed a motion to dismiss plaintiffs&#8217; claims. On March 31, 2015, the Court denied the motion to dismiss. On May 14, 2015, the Company filed its answer to plaintiffs&#8217; corrected amended complaint. The discovery process is ongoing. On September 4, 2015, plaintiffs filed their motion for class certification. A court-ordered mediation held in January 2016 did not result in a settlement of the lawsuit.</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Based upon information presently known to management, the Company believes that the potential liability, if any, will not have a material adverse effect on its financial condition, cash flows or results of operations.</font></div><div style="line-height:120%;padding-top:18px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Shareholder Derivative Lawsuit</font><font style="font-family:inherit;font-size:10pt;font-weight:bold;"> </font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On March 20, 2014, a purported shareholder derivative lawsuit captioned </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Wessels v. Read, et al.</font><font style="font-family:inherit;font-size:10pt;">, Case No. 1:14-cv-262486 (&#8220;Wessels&#8221;) was filed against the Company (as a nominal defendant only) and certain of the Company&#8217;s directors and officers in the Santa Clara County Superior Court of the State of California. The complaint purports to assert claims against the Company and certain individual directors and officers for breach of fiduciary duty, waste of corporate assets and unjust enrichment. The complaint seeks damages allegedly caused by alleged materially misleading statements and/or material omissions by the Company and the individual directors and officers regarding its 32nm technology and &#8220;Llano&#8221; product, which statements and omissions, the plaintiffs claim, allegedly operated to artificially inflate the price paid for the Company&#8217;s common stock during the period. On April 27, 2015, a similar purported shareholder derivative lawsuit captioned </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Christopher Hamilton and David Hamilton v. Barnes, et al.</font><font style="font-family:inherit;font-size:10pt;">, Case No. 5:15-cv-01890 (&#8220;Hamilton&#8221;) was filed against the Company (as a nominal defendant only) and certain of the Company&#8217;s directors and officers in the United States District Court for the Northern District of California. The case was transferred to the judge handling the Hatamian Lawsuit and is now Case No. 4:15-cv-01890.&#160; On September 29, 2015, a similar purported shareholder derivative lawsuit captioned </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Jake Ha v Caldwell, et al., </font><font style="font-family:inherit;font-size:10pt;">Case No. 3:15-cv-04485 (&#8220;Ha&#8221;) was filed against the Company (as a nominal defendant only) and certain of its directors and officers in the United States District Court for the Northern District of California. The lawsuit also seeks a court order voiding the shareholder vote on AMD&#8217;s 2015 proxy. The case was transferred to the judge handling the Hatamian Lawsuit and is now Case No. 4:15-cv-04485. The Wessels, Hamilton and Ha shareholder derivative lawsuits are currently stayed.</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Based upon information presently known to management, the Company believes that the potential liability, if any, will not have a material adverse effect on its financial condition, cash flows or results of operations.</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Environmental Matters</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company is named as a responsible party on Superfund clean-up orders for three sites in Sunnyvale, California that are on the National Priorities List. Since 1981, the Company has discovered hazardous material releases to the groundwater from former underground tanks and proceeded to investigate and conduct remediation at these three sites. The chemicals released into the groundwater were commonly used in the semiconductor industry in the United States in the wafer fabrication process prior to 1979.</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In 1991, the Company received Final Site Clean-up Requirements Orders from the California Regional Water Quality Control Board relating to the three sites. The Company has entered into settlement agreements with other responsible parties on two of the orders. During the term of such agreements, other parties have agreed to assume most of the foreseeable costs as well as the primary role in conducting remediation activities under the orders. The Company remains responsible for additional costs beyond the scope of the agreements as well as all remaining costs in the event that the other parties do not fulfill their obligations under the settlement agreements.</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">To address anticipated future remediation costs under the orders, the Company has computed and recorded an estimated environmental liability of approximately </font><font style="font-family:inherit;font-size:10pt;">$4 million</font><font style="font-family:inherit;font-size:10pt;"> and has not recorded any potential insurance recoveries in determining the estimated costs of the cleanup. The progress of future remediation efforts cannot be predicted with certainty and these costs may change. The Company believes that any amount in addition to what has already been accrued would not be material.</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Other Legal Matters</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company is a defendant or plaintiff in various actions that arose in the normal course of business. With respect to these matters, based on the management&#8217;s current knowledge, the Company believes that the amount or range of reasonably possible loss, if any, will not, either individually or in the aggregate, have a material adverse effect on the Company&#8217;s financial position, results of operations, or cash flows.</font></div></div>
CY2015 us-gaap Nature Of Operations
NatureOfOperations
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Nature of Operations</font></div><div style="line-height:120%;padding-top:6px;text-align:justify;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Advanced Micro Devices, Inc. is a global semiconductor company. References herein to AMD or the Company mean Advanced Micro Devices, Inc. and its consolidated subsidiaries. The Company primarily offers:</font></div><table cellpadding="0" cellspacing="0" style="padding-top:12px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:84px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:36px;"><font style="font-family:inherit;font-size:10pt;">(i)</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">x86 microprocessors, as a standalone central processing unit (CPU) or as incorporated into an accelerated processing unit (APU), chipsets, and discrete graphics processing units (GPUs) for the consumer, commercial and professional graphics markets; and</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:8px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:84px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:36px;"><font style="font-family:inherit;font-size:10pt;">(ii)</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">server and embedded CPUs, GPUs and APUs, and semi-custom System-on-Chip (SoC) products and technology for game consoles.</font></div></td></tr></table></div>
CY2015 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Use of Estimates.</font><font style="font-family:inherit;font-size:10pt;">&#160;The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of commitments and contingencies at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results are likely to differ from those estimates, and such differences may be material to the financial statements. Areas where management uses subjective judgment include, but are not limited to, revenue allowances, inventory valuation, valuation and impairment of goodwill, valuation of investments in marketable securities, deferred income taxes and restructuring charges.</font></div></div>

Files In Submission

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