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þ
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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94-1692300
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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One AMD Place
Sunnyvale, California
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94085
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(Address of principal executive offices)
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(Zip Code)
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Large accelerated filer
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þ
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Accelerated filer
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¨
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Non-accelerated filer
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¨
(Do not check if a smaller reporting company)
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Smaller reporting company
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¨
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Emerging growth company
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¨
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Page No.
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||
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||
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Condensed Consolidated Statements of Operations
–
Three Months Ended April 1, 2017 and March 26, 2016
|
|
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Condensed Consolidated Statements of Comprehensive Loss –
Three Months Ended April 1, 2017 and March 26, 2016
|
|
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Condensed Consolidated Balance Sheets
as of April 1, 2017 and December 31, 2016
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Condensed Consolidated Statements of Cash Flows –
Three Months Ended April 1, 2017 and March 26, 2016
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ITEM 1.
|
FINANCIAL STATEMENTS
|
|
Three Months Ended
|
||||||
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April 1,
2017 |
|
March 26,
2016 |
||||
|
(In millions, except per share amounts)
|
||||||
Net revenue
|
$
|
984
|
|
|
$
|
832
|
|
Cost of sales
|
653
|
|
|
563
|
|
||
Gross margin
|
331
|
|
|
269
|
|
||
Research and development
|
266
|
|
|
242
|
|
||
Marketing, general and administrative
|
121
|
|
|
105
|
|
||
Restructuring and other special charges, net
|
—
|
|
|
(3
|
)
|
||
Licensing gain
|
(27
|
)
|
|
(7
|
)
|
||
Operating loss
|
(29
|
)
|
|
(68
|
)
|
||
Interest expense
|
(32
|
)
|
|
(40
|
)
|
||
Other expense, net
|
(5
|
)
|
|
—
|
|
||
Loss before equity loss and income taxes
|
(66
|
)
|
|
(108
|
)
|
||
Provision for income taxes
|
5
|
|
|
1
|
|
||
Equity loss in investee
|
(2
|
)
|
|
—
|
|
||
Net loss
|
$
|
(73
|
)
|
|
$
|
(109
|
)
|
Net loss per share
|
|
|
|
||||
Basic
|
$
|
(0.08
|
)
|
|
$
|
(0.14
|
)
|
Diluted
|
$
|
(0.08
|
)
|
|
$
|
(0.14
|
)
|
Shares used in per share calculation
|
|
|
|
||||
Basic
|
939
|
|
|
793
|
|
||
Diluted
|
939
|
|
|
793
|
|
|
Three Months Ended
|
||||||
|
April 1,
2017 |
|
March 26,
2016 |
||||
|
(In millions)
|
||||||
Net loss
|
$
|
(73
|
)
|
|
$
|
(109
|
)
|
Other comprehensive income, net of tax:
|
|
|
|
||||
Unrealized losses on available-for-sale securities:
|
|
|
|
||||
Unrealized losses arising during the period
|
—
|
|
|
(2
|
)
|
||
Unrealized gains (losses) on cash flow hedges:
|
|
|
|
||||
Unrealized gains arising during the period
|
2
|
|
|
2
|
|
||
Reclassification adjustment for (gains) losses realized and included in net loss
|
(1
|
)
|
|
2
|
|
||
Total change in unrealized gains (losses) on cash flow hedges
|
1
|
|
|
4
|
|
||
Total other comprehensive income
|
1
|
|
|
2
|
|
||
Total comprehensive loss
|
$
|
(72
|
)
|
|
$
|
(107
|
)
|
|
April 1,
2017 |
|
December 31,
2016 |
||||
|
(In millions, except par value amounts)
|
||||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
722
|
|
|
$
|
1,264
|
|
Marketable securities
|
221
|
|
|
—
|
|
||
Accounts receivable, net
|
494
|
|
|
311
|
|
||
Inventories, net
|
839
|
|
|
751
|
|
||
Prepayment and other receivables - related parties
|
31
|
|
|
32
|
|
||
Prepaid expenses
|
73
|
|
|
63
|
|
||
Other current assets
|
118
|
|
|
109
|
|
||
Total current assets
|
$
|
2,498
|
|
|
$
|
2,530
|
|
Property, plant and equipment, net
|
180
|
|
|
164
|
|
||
Goodwill
|
289
|
|
|
289
|
|
||
Investment: equity method
|
58
|
|
|
59
|
|
||
Other assets
|
274
|
|
|
279
|
|
||
Total assets
|
$
|
3,299
|
|
|
$
|
3,321
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
529
|
|
|
$
|
440
|
|
Payables to related parties
|
329
|
|
|
383
|
|
||
Accrued liabilities
|
385
|
|
|
391
|
|
||
Other current liabilities
|
67
|
|
|
69
|
|
||
Deferred income on shipments to distributors
|
62
|
|
|
63
|
|
||
Total current liabilities
|
1,372
|
|
|
1,346
|
|
||
Long-term debt, net
|
1,408
|
|
|
1,435
|
|
||
Other long-term liabilities
|
110
|
|
|
124
|
|
||
Commitments and contingencies (See Note 12)
|
|
|
|
||||
Stockholders’ equity:
|
|
|
|
||||
Capital stock:
|
|
|
|
||||
Common stock, par value $0.01; 1,500 shares authorized on April 1, 2017 and December 31, 2016; shares issued: 953 on April 1, 2017 and 949 shares on December 31, 2016; shares outstanding: 942 on April 1, 2017 and 935 shares on December 31, 2016
|
9
|
|
|
9
|
|
||
Additional paid-in capital
|
8,379
|
|
|
8,334
|
|
||
Treasury stock, at cost (11 shares on April 1, 2017 and 14 shares on December 31, 2016)
|
(99
|
)
|
|
(119
|
)
|
||
Accumulated deficit
|
(7,876
|
)
|
|
(7,803
|
)
|
||
Accumulated other comprehensive loss
|
(4
|
)
|
|
(5
|
)
|
||
Total stockholders’ equity
|
409
|
|
|
416
|
|
||
Total liabilities and stockholders’ equity
|
$
|
3,299
|
|
|
$
|
3,321
|
|
|
Three Months Ended
|
||||||
|
April 1,
2017 |
|
March 26,
2016 |
||||
|
(In millions)
|
||||||
Cash flows from operating activities:
|
|
|
|
||||
Net loss
|
$
|
(73
|
)
|
|
$
|
(109
|
)
|
Adjustments to reconcile net loss to net cash used in operating activities:
|
|
|
|
||||
Depreciation and amortization
|
34
|
|
|
33
|
|
||
Stock-based compensation expense
|
23
|
|
|
16
|
|
||
Non-cash interest expense
|
9
|
|
|
4
|
|
||
Loss on debt redemption
|
4
|
|
|
—
|
|
||
Other
|
5
|
|
|
(5
|
)
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Accounts receivable
|
(183
|
)
|
|
26
|
|
||
Inventories
|
(88
|
)
|
|
3
|
|
||
Prepayment and other receivables - related parties
|
1
|
|
|
7
|
|
||
Prepaid expenses and other assets
|
(30
|
)
|
|
22
|
|
||
Payables to related parties
|
(54
|
)
|
|
(12
|
)
|
||
Accounts payable, accrued liabilities and other
|
53
|
|
|
(27
|
)
|
||
Net cash used in operating activities
|
(299
|
)
|
|
(42
|
)
|
||
Cash flows from investing activities:
|
|
|
|
||||
Purchases of property, plant and equipment
|
(23
|
)
|
|
(26
|
)
|
||
Purchases of available-for-sale securities
|
(221
|
)
|
|
—
|
|
||
Other
|
(2
|
)
|
|
—
|
|
||
Net cash used in investing activities
|
(246
|
)
|
|
(26
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Proceeds from issuance of common stock under stock-based compensation equity plans
|
8
|
|
|
—
|
|
||
Other
|
(5
|
)
|
|
(1
|
)
|
||
Net cash provided by (used in) financing activities
|
3
|
|
|
(1
|
)
|
||
Net decrease in cash and cash equivalents
|
(542
|
)
|
|
(69
|
)
|
||
Cash and cash equivalents at beginning of period
|
1,264
|
|
|
785
|
|
||
Cash and cash equivalents at end of period
|
$
|
722
|
|
|
$
|
716
|
|
Supplemental cash flow information:
|
|
|
|
||||
Non-cash investing and financing activities:
|
|
|
|
||||
Purchases of property, plant and equipment, accrued but not paid
|
$
|
11
|
|
|
$
|
—
|
|
Issuance of common stock to partially settle long-term debt
|
$
|
38
|
|
|
$
|
—
|
|
|
April 1,
2017 |
|
December 31,
2016 |
||||
|
(In millions)
|
||||||
Raw materials
|
$
|
19
|
|
|
$
|
11
|
|
Work in process
|
598
|
|
|
564
|
|
||
Finished goods
|
222
|
|
|
176
|
|
||
Total inventories, net
|
$
|
839
|
|
|
$
|
751
|
|
|
April 1,
2017 |
|
December 31,
2016 |
||||
|
(In millions)
|
||||||
Leasehold improvements
|
$
|
147
|
|
|
$
|
148
|
|
Equipment
|
726
|
|
|
714
|
|
||
Construction in progress
|
32
|
|
|
19
|
|
||
Property, plant and equipment, gross
|
905
|
|
|
881
|
|
||
Accumulated depreciation and amortization
|
(725
|
)
|
|
(717
|
)
|
||
Total property, plant and equipment, net
|
$
|
180
|
|
|
$
|
164
|
|
|
April 1,
2017 |
|
December 31,
2016 |
||||
|
(In millions)
|
||||||
Software technology and licenses, net
|
$
|
222
|
|
|
$
|
232
|
|
Other
|
52
|
|
|
47
|
|
||
Total other assets
|
$
|
274
|
|
|
$
|
279
|
|
|
April 1,
2017 |
|
December 31,
2016 |
||||
|
(In millions)
|
||||||
Accrued compensation and benefits
|
$
|
114
|
|
|
$
|
116
|
|
Marketing programs and advertising expenses
|
93
|
|
|
102
|
|
||
Software technology and licenses payable
|
45
|
|
|
24
|
|
||
Other
|
133
|
|
|
149
|
|
||
Total accrued liabilities
|
$
|
385
|
|
|
$
|
391
|
|
|
April 1,
2017 |
|
December 31,
2016 |
||||
|
(In millions)
|
||||||
Principal amounts:
|
|
|
|
||||
Principal
|
$
|
805
|
|
|
$
|
805
|
|
Unamortized debt discount
(1)
|
(302
|
)
|
|
(308
|
)
|
||
Unamortized debt issuance costs
|
(13
|
)
|
|
(14
|
)
|
||
Net carrying amount
|
$
|
490
|
|
|
$
|
483
|
|
Carrying amount of the equity component, net
(2)
|
$
|
305
|
|
|
$
|
305
|
|
(1)
|
Included in the consolidated balance sheets within Long-term debt, net and amortized over the remaining life of the notes using the effective interest rate method.
|
(2)
|
Included in the consolidated balance sheets within additional paid-in capital, net of
$9 million
of equity issuance costs.
|
|
Three Months Ended
|
||
|
April 1,
2017 |
||
|
(In millions)
|
||
Contractual interest expense
|
$
|
4
|
|
Interest cost related to amortization of debt issuance costs
|
$
|
1
|
|
Interest cost related to amortization of the debt discount
|
$
|
6
|
|
|
Three Months Ended
|
||||||
|
April 1,
2017 |
|
March 26,
2016 |
||||
|
(In millions, except per share amounts)
|
||||||
Numerator – Net loss:
|
|
|
|
||||
Numerator for basic and diluted net loss per share
|
$
|
(73
|
)
|
|
$
|
(109
|
)
|
Denominator - Weighted average shares
|
|
|
|
||||
Denominator for basic and diluted net loss per share
|
939
|
|
|
793
|
|
||
Net loss per share:
|
|
|
|
||||
Basic
|
$
|
(0.08
|
)
|
|
$
|
(0.14
|
)
|
Diluted
|
$
|
(0.08
|
)
|
|
$
|
(0.14
|
)
|
|
Total Fair
Value
|
|
Cash and
Cash
Equivalents
|
|
Short-Term
Marketable
Securities
|
||||||
|
(In millions)
|
||||||||||
April 1, 2017
|
|
|
|
|
|
||||||
Cash
|
$
|
93
|
|
|
$
|
93
|
|
|
$
|
—
|
|
Level 1
(1) (2)
|
|
|
|
|
|
||||||
Government money market funds
|
$
|
55
|
|
|
$
|
55
|
|
|
$
|
—
|
|
Total level 1
|
$
|
55
|
|
|
$
|
55
|
|
|
$
|
—
|
|
Level 2
(1) (3)
|
|
|
|
|
|
||||||
Commercial paper
|
$
|
795
|
|
|
$
|
574
|
|
|
$
|
221
|
|
Total level 2
|
$
|
795
|
|
|
$
|
574
|
|
|
$
|
221
|
|
Total
|
$
|
943
|
|
|
$
|
722
|
|
|
$
|
221
|
|
|
Total Fair
Value
|
|
Cash and
Cash
Equivalents
|
||||
|
(In millions)
|
||||||
December 31, 2016
|
|
|
|
||||
Cash
|
$
|
67
|
|
|
$
|
67
|
|
Level 1
(1) (2)
|
|
|
|
||||
Government money market funds
|
$
|
50
|
|
|
$
|
50
|
|
Total level 1
|
$
|
50
|
|
|
$
|
50
|
|
Level 2
(1) (3)
|
|
|
|
||||
Commercial paper
|
$
|
1,147
|
|
|
$
|
1,147
|
|
Total level 2
|
$
|
1,147
|
|
|
$
|
1,147
|
|
Total
|
$
|
1,264
|
|
|
$
|
1,264
|
|
(1)
|
The Company did not have any transfers between Level 1 and Level 2 of the fair value hierarchy during the
quarter ended April 1, 2017
or the year ended
December 31, 2016
.
|
(2)
|
The Company's Level 1 assets are valued using quoted prices for identical instruments in active markets.
|
(3)
|
The Company’s Level 2 assets are valued using broker reports that utilize quoted market prices for identical or comparable instruments. Brokers gather observable inputs for all of the Company’s fixed income securities from a variety of industry data providers and other third-party sources.
|
|
April 1, 2017
|
|
December 31, 2016
|
||||||||||||
|
Carrying
Amount
|
|
Estimated
Fair Value
|
|
Carrying
Amount
|
|
Estimated
Fair Value
|
||||||||
|
(In millions)
|
||||||||||||||
Long-term debt, net
(1)
|
$
|
1,407
|
|
|
$
|
2,595
|
|
|
$
|
1,434
|
|
|
$
|
2,313
|
|
(1)
|
Carrying amounts of long-term debt are net of unamortized debt issuance costs of
$24 million
as of
April 1, 2017
and
$25 million
as of
December 31, 2016
, based on the adoption of ASU 2015-03 and net of unamortized debt discount associated with the
2.125%
Notes of
$302 million
as of
April 1, 2017
and
$308 million
as of
December 31, 2016
.
|
|
Three Months Ended
|
||||||
|
April 1,
2017 |
|
March 26,
2016 |
||||
|
(In millions)
|
||||||
Foreign Currency Forward Contracts - gains (losses)
|
|
|
|
||||
Contracts designated as cash flow hedging instruments
|
|
|
|
||||
Other comprehensive income (loss)
|
$
|
2
|
|
|
$
|
6
|
|
Research and development
|
1
|
|
|
(2
|
)
|
|
April 1,
2017 |
|
December 31,
2016 |
||||
|
(In millions)
|
||||||
Foreign Currency Forward Contracts - gains (losses)
|
|
|
|
||||
Contracts designated as cash flow hedging instruments
|
$
|
—
|
|
|
$
|
(2
|
)
|
•
|
the Computing and Graphics segment, which primarily includes desktop and notebook processors and chipsets, discrete graphics processing units (GPUs) and professional graphics; and
|
•
|
the Enterprise, Embedded and Semi-Custom segment, which primarily includes server and embedded processors, semi-custom System-on-Chip (SoC) products, development services, technology for game consoles and licensing portions of its intellectual property portfolio.
|
|
Three Months Ended
|
||||||
|
April 1,
2017 |
|
March 26,
2016 |
||||
|
(In millions)
|
||||||
Net revenue:
|
|
|
|
||||
Computing and Graphics
|
$
|
593
|
|
|
$
|
460
|
|
Enterprise, Embedded and Semi-Custom
|
391
|
|
|
372
|
|
||
Total net revenue
|
$
|
984
|
|
|
$
|
832
|
|
Operating income (loss):
|
|
|
|
||||
Computing and Graphics
|
$
|
(15
|
)
|
|
$
|
(70
|
)
|
Enterprise, Embedded and Semi-Custom
|
9
|
|
|
16
|
|
||
All Other
|
(23
|
)
|
|
(14
|
)
|
||
Total operating loss
|
$
|
(29
|
)
|
|
$
|
(68
|
)
|
|
Three Months Ended
|
||||||
|
April 1,
2017 |
|
March 26,
2016 |
||||
|
(In millions)
|
||||||
Operating loss:
|
|
|
|
||||
Stock-based compensation expense
|
$
|
(23
|
)
|
|
$
|
(16
|
)
|
Restructuring and other special charges, net
|
—
|
|
|
3
|
|
||
Other
|
—
|
|
|
(1
|
)
|
||
Total operating loss
|
$
|
(23
|
)
|
|
$
|
(14
|
)
|
|
Three Months Ended
|
||||||
|
April 1,
2017 |
|
March 26,
2016 |
||||
|
(In millions)
|
||||||
Beginning balance
|
$
|
12
|
|
|
$
|
15
|
|
New warranties issued
|
5
|
|
|
5
|
|
||
Settlements
|
(5
|
)
|
|
(4
|
)
|
||
Changes in liability for pre-existing warranties, including expirations
|
(2
|
)
|
|
(3
|
)
|
||
Ending balance
|
$
|
10
|
|
|
$
|
13
|
|
|
Three Months Ended
|
||||||||||||||||||||||
|
April 1,
2017 |
|
March 26,
2016 |
||||||||||||||||||||
|
Unrealized gains (losses) on available-for-sale securities
|
|
Unrealized gains (losses) on cash flow hedges
|
|
Total
|
|
Unrealized gains (losses) on available-for-sale securities
|
|
Unrealized gains (losses) on cash flow hedges
|
|
Total
|
||||||||||||
|
(In millions)
|
||||||||||||||||||||||
Beginning balance
|
$
|
(1
|
)
|
|
$
|
(4
|
)
|
|
$
|
(5
|
)
|
|
$
|
(1
|
)
|
|
$
|
(7
|
)
|
|
$
|
(8
|
)
|
Unrealized gains (losses) arising during the period
|
—
|
|
|
3
|
|
|
3
|
|
|
(3
|
)
|
|
4
|
|
|
1
|
|
||||||
Reclassification adjustment for (gains) losses realized and included in net income (loss)
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
3
|
|
|
3
|
|
||||||
Tax effect
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
1
|
|
|
(3
|
)
|
|
(2
|
)
|
||||||
Total other comprehensive income (loss)
|
—
|
|
|
1
|
|
|
1
|
|
|
(2
|
)
|
|
4
|
|
|
2
|
|
||||||
Ending balance
|
$
|
(1
|
)
|
|
$
|
(3
|
)
|
|
$
|
(4
|
)
|
|
$
|
(3
|
)
|
|
$
|
(3
|
)
|
|
$
|
(6
|
)
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
•
|
x86 microprocessors, as standalone devices or as incorporated as an accelerated processing unit (APU), chipsets, discrete graphics processing units (GPUs) and professional graphics; and
|
•
|
server and embedded processors, semi-custom System-on-Chip (SoC) products and technology for game consoles. We also license portions of our intellectual property portfolio.
|
•
|
the Computing and Graphics segment, which primarily includes desktop and notebook processors and chipsets, discrete GPUs and professional graphics; and
|
•
|
the Enterprise, Embedded and Semi-Custom segment, which primarily includes server and embedded processors, semi-custom SoC products, development services, technology for game consoles and licensing portions of our intellectual property portfolio.
|
|
|
Three Months Ended
|
||||||
|
|
April 1,
2017 |
|
March 26,
2016 |
||||
|
|
(In millions)
|
||||||
Net revenue:
|
|
|
|
|
||||
Computing and Graphics
|
|
$
|
593
|
|
|
$
|
460
|
|
Enterprise, Embedded and Semi-Custom
|
|
391
|
|
|
372
|
|
||
Total net revenue
|
|
$
|
984
|
|
|
$
|
832
|
|
Operating income (loss):
|
|
|
|
|
||||
Computing and Graphics
|
|
$
|
(15
|
)
|
|
$
|
(70
|
)
|
Enterprise, Embedded and Semi-Custom
|
|
9
|
|
|
16
|
|
||
All Other
|
|
(23
|
)
|
|
(14
|
)
|
||
Total operating loss
|
|
$
|
(29
|
)
|
|
$
|
(68
|
)
|
|
|
Three Months Ended
|
||||||
|
|
April 1,
2017 |
|
March 26,
2016 |
||||
|
|
(In millions except for percentages)
|
||||||
Cost of sales
|
|
$
|
653
|
|
|
$
|
563
|
|
Gross margin
|
|
$
|
331
|
|
|
$
|
269
|
|
Gross margin percentage
|
|
34
|
%
|
|
32
|
%
|
||
Research and development
|
|
$
|
266
|
|
|
$
|
242
|
|
Marketing, general and administrative
|
|
$
|
121
|
|
|
$
|
105
|
|
Restructuring and other special charges, net
|
|
$
|
—
|
|
|
$
|
(3
|
)
|
Licensing gain
|
|
$
|
(27
|
)
|
|
$
|
(7
|
)
|
Interest expense
|
|
$
|
(32
|
)
|
|
$
|
(40
|
)
|
Other expense, net
|
|
$
|
(5
|
)
|
|
$
|
—
|
|
Provision for income taxes
|
|
$
|
5
|
|
|
$
|
1
|
|
|
Three Months Ended
|
||||||
|
April 1,
2017 |
|
March 26,
2016 |
||||
|
(In millions)
|
||||||
Cost of sales
|
$
|
—
|
|
|
$
|
1
|
|
Research and development
|
14
|
|
|
9
|
|
||
Marketing, general and administrative
|
9
|
|
|
6
|
|
||
Stock-based compensation expense, net of tax of $0
|
$
|
23
|
|
|
$
|
16
|
|
|
|
Three Months Ended
|
||||||
|
|
April 1,
2017 |
|
March 26,
2016 |
||||
|
|
(In millions )
|
||||||
Net cash provided by (used in):
|
|
|
|
|
||||
Operating activities
|
|
$
|
(299
|
)
|
|
$
|
(42
|
)
|
Investing activities
|
|
(246
|
)
|
|
(26
|
)
|
||
Financing activities
|
|
3
|
|
|
(1
|
)
|
|
Payments due by period as of April 1, 2017
|
||||||||||||||||||||||||||
(In millions)
|
Total
|
|
Remainder of 2017
|
|
2018
|
|
2019
|
|
2020
|
|
2021
|
|
2022 and
thereafter
|
||||||||||||||
6.75% Notes
|
$
|
191
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
191
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
7.50% Notes
|
347
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
347
|
|
|||||||
7.00% Notes
|
390
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
390
|
|
|||||||
2.125% Notes
|
805
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
805
|
|
|||||||
Other long-term liabilities
(1)
|
106
|
|
|
31
|
|
|
31
|
|
|
36
|
|
|
6
|
|
|
—
|
|
|
2
|
|
|||||||
Aggregate interest obligation
(2)
|
584
|
|
|
85
|
|
|
85
|
|
|
77
|
|
|
72
|
|
|
72
|
|
|
193
|
|
|||||||
Operating leases
|
356
|
|
|
37
|
|
|
48
|
|
|
43
|
|
|
40
|
|
|
61
|
|
|
127
|
|
|||||||
Purchase obligations
(3)
|
474
|
|
|
375
|
|
|
90
|
|
|
5
|
|
|
3
|
|
|
1
|
|
|
—
|
|
|||||||
Obligations to GF
(4)
|
3,173
|
|
|
859
|
|
|
770
|
|
|
764
|
|
|
780
|
|
|
—
|
|
|
—
|
|
|||||||
Total contractual obligations
(5)
|
$
|
6,426
|
|
|
$
|
1,387
|
|
|
$
|
1,024
|
|
|
$
|
1,116
|
|
|
$
|
901
|
|
|
$
|
134
|
|
|
$
|
1,864
|
|
(1)
|
Amounts largely represent future fixed and non-cancelable cash payments associated with software technology and licenses and IP licenses, including the payments due within the next 12 months.
|
(2)
|
Represents estimated aggregate interest obligations for our outstanding debt obligations that are payable in cash, excluding non-cash amortization of debt issuance costs.
|
(3)
|
We have purchase obligations for goods and services where payments are based, in part, on the volume or type of services we acquire. In those cases, we only included the minimum volume of purchase obligations in the table above. Purchase orders for goods and services that are cancelable upon notice and without significant penalties are not included in the amounts above.
|
(4)
|
Includes our currently expected purchases from GF for the remainder of 2017 for wafer manufacturing and research and development activities and minimum purchase obligations for wafer purchases for years 2018 through 2020. We cannot meaningfully quantify or estimate our future purchase obligations to GF beyond 2020 but expect that our future purchases from GF will continue to be material.
|
(5)
|
Total amount excludes contractual obligations already recorded on our condensed consolidated balance sheets except for debt obligations and other liabilities related to software and technology licenses and IP licenses.
|
Period
|
Price as
Percentage of
Principal Amount
|
|
Beginning on July 1, 2019 through June 30, 2020
|
103.500
|
%
|
Beginning on July 1, 2020 through June 30, 2021
|
102.333
|
%
|
Beginning on July 1, 2021 through June 30, 2022
|
101.167
|
%
|
On July 1, 2022 and thereafter
|
100.000
|
%
|
ITEM 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 4.
|
CONTROLS AND PROCEDURES
|
ITEM 1.
|
LEGAL PROCEEDINGS
|
ITEM 1A.
|
RISK FACTORS
|
•
|
business practices, including rebating and allocation strategies and pricing actions, designed to limit our market share and margins;
|
•
|
product mix and introduction schedules;
|
•
|
product bundling, marketing and merchandising strategies;
|
•
|
exclusivity payments to its current and potential customers and channel partners;
|
•
|
de facto control over industry standards, and heavy influence on PC manufacturers and other PC industry participants, including motherboard, memory, chipset and basic input/output system, or BIOS, suppliers and software companies as well as the graphics interface for Intel platforms; and
|
•
|
marketing and advertising expenditures in support of positioning the Intel brand over the brand of its original equipment manufacturer OEM customers.
|
•
|
make it difficult for us to satisfy our financial obligations, including making scheduled principal and interest payments;
|
•
|
limit our ability to borrow additional funds for working capital, capital expenditures, acquisitions and general corporate and other purposes;
|
•
|
limit our ability to use our cash flow or obtain additional financing for future working capital, capital expenditures, acquisitions or other general corporate purposes;
|
•
|
require us to use a substantial portion of our cash flow from operations to make debt service payments;
|
•
|
place us at a competitive disadvantage compared to our competitors with relatively less debt; and
|
•
|
increase our vulnerability to the impact of adverse economic and industry conditions.
|
•
|
incur additional indebtedness;
|
•
|
pay dividends and make other restricted payments;
|
•
|
make certain investments, including investments in our unrestricted subsidiaries;
|
•
|
create or permit certain liens;
|
•
|
create or permit restrictions on the ability of certain restricted subsidiaries to pay dividends or make other distributions to us;
|
•
|
use the proceeds from sales of assets;
|
•
|
enter into certain types of transactions with affiliates; and
|
•
|
consolidate or merge or sell our assets as an entirety or substantially as an entirety.
|
•
|
create liens upon any of the Loan Parties’ property (other than customary permitted liens and liens in respect of up to $1.5 billion of secured credit facilities debt (which amount includes our Secured Revolving Line of Credit));
|
•
|
declare or make cash distributions;
|
•
|
create any encumbrance on the ability of a subsidiary to make any upstream payments;
|
•
|
make asset dispositions other than certain ordinary course dispositions and certain supply chain finance arrangements;
|
•
|
make certain loans, make payments with respect to subordinated debt or certain borrowed money prior to its due date; and
|
•
|
enter into any non-arm’s-length transaction with an affiliate (except for certain customary exceptions).
|
•
|
a sudden or significant decrease in demand for our products;
|
•
|
a production or design defect in our products;
|
•
|
a higher incidence of inventory obsolescence because of rapidly changing technology and customer requirements;
|
•
|
a failure to accurately estimate customer demand for our products, including for our older products as our new products are introduced; or
|
•
|
our competitors introducing new products or taking aggressive pricing actions.
|
•
|
substantial declines in average selling prices;
|
•
|
the cyclical nature of supply and demand imbalances in the semiconductor industry;
|
•
|
a decline in demand for end-user products (such as PCs) that incorporate our products; and
|
•
|
excess inventory levels.
|
•
|
implementing new data security procedures, including costs related to upgrading computer and network security;
|
•
|
training workers to maintain and monitor our security measures;
|
•
|
remediating any data security breach and addressing the related litigation; and
|
•
|
mitigating reputational harm.
|
•
|
expropriation;
|
•
|
changes in a specific country’s or region’s political or economic conditions;
|
•
|
changes in tax laws, trade protection measures and import or export licensing requirements;
|
•
|
difficulties in protecting our intellectual property;
|
•
|
difficulties in managing staffing and exposure to different employment practices and labor laws;
|
•
|
changes in foreign currency exchange rates;
|
•
|
restrictions on transfers of funds and other assets of our subsidiaries between jurisdictions;
|
•
|
changes in freight and interest rates;
|
•
|
disruption in air transportation between the United States and our overseas facilities;
|
•
|
loss or modification of exemptions for taxes and tariffs; and
|
•
|
compliance with U.S. laws and regulations related to international operations, including export control and economic sanctions laws and regulations and the Foreign Corrupt Practices Act.
|
ITEM 6.
|
EXHIBITS
|
10.1*
|
|
Advanced Micro Devices, Inc. Outside Director Equity Compensation Policy, amended and restated as of April 26, 2017.
|
10.2*
|
|
Form of Stock Option Agreement for Senior Vice Presidents and Above under the Advanced Micro Devices, Inc. 2004 Equity Incentive Plan.
|
10.3
|
|
Fifth Amendment to the Amended and Restated Loan and Security Agreement, dated as of March 21, 2017, by and among Advanced Micro Devices, Inc., a Delaware corporation, AMD International Sales & Service, Ltd., a Delaware corporation, ATI Technologies ULC, an Alberta unlimited liability corporation, the financial institutions party thereto from time to time as lenders and Bank of America, N.A., a national banking association, as agent for the lenders, filed as Exhibit 10.1 to AMD’s Current Report on Form 8-K dated March 21, 2017, is hereby incorporated by reference.
|
31.1
|
|
Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
31.2
|
|
Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
32.1
|
|
Certification of the Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
32.2
|
|
Certification of the Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
101.INS
|
|
XBRL Instance Document.
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document.
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document.
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
*
|
Management contracts and compensatory plans or arrangements.
|
|
|
|
|
ADVANCED MICRO DEVICES, INC.
|
|
|
|
|
|
May 8, 2017
|
|
By:
|
/s/ Devinder Kumar
|
|
|
Name:
|
Devinder Kumar
|
|
|
Title:
|
Senior Vice President, Chief Financial Officer and Treasurer
Signing on behalf of the Registrant as the Principal Financial Officer
|
You hereby explicitly, voluntarily and unambiguously consent to the collection, use and transfer, in electronic or other form, of your personal data as described in the Agreement and any other Award Documentation by and among, as applicable, you, the Employer, the Company and other Parents, Subsidiaries and Affiliates or any third parties authorized by same in assisting in the implementation, administration or management of your participation in the Plan.
You may have previously provided the Company and the Employer with, and the Company and the Employer may hold, certain personal information about you, including, but not limited to, your name, home address and telephone number, email address, date of birth, social insurance, passport, or other identification number, salary, nationality, job title, any shares of stock or directorships held in the Company, the fact and conditions of your participation in the Plan, details of all options or any other entitlement to shares of stock awarded, cancelled, exercised, vested, unvested or outstanding in your favor (“Data”), for the exclusive purpose of implementing, administering and managing the Plan.
You also authorize any transfer of Data, as may be required, to a Company-designated Plan broker, or such other stock plan service provider as may be selected by the Company in the future, which is assisting the Company with the implementation, administration and management of the Plan and/or with whom any shares acquired upon exercise of the Options are deposited. You acknowledge that these recipients may be located in your country or elsewhere, and that the recipient’s country (e.g., the United States) may have different data privacy laws and protections to your country, which may not give the same level of protection to Data. You understand that you may request a list with the names and addresses of any potential recipients of Data by contacting your local human resources representative. You authorize the Company, the stock plan service provider and any other possible recipients which may assist the Company (presently or in the future) with implementing, administering and
|
|
Anda dengan ini secara eksplisit, secara sukarela dan tanpa sebarang keraguan mengizinkan pengumpulan, penggunaan dan pemindahan, dalam bentuk elektronik atau lain-lain, data peribadi anda seperti yang dinyatakan dalam Perjanjian dan apa-apa Dokumentasi Penganugerahan oleh dan di antara, sebagaimana yang berkenaan, Majikan, Syarikat dan Syarikat-syarikat Induk, Anak-anak Syarikat dan Syarikat-syarikat Sekutu masing masing, atau mana-mana pihak ketiga yang diberi kuasa oleh yang sama untuk membantu dalam pelaksanaan, pentadbiran dan pengurusan penyertaan andadalam Pelan tersebut.
Sebelum ini, andamungkin telah membekalkan Syarikat dan Majikan dengan, dan Syarikat dan Majikan mungkin memegang, maklumat peribadi tertentu tentanganda, termasuk, tetapi tidak terhad kepada, nama anda, alamat rumah dan nombor telefon, alamat emel, tarikh lahir, insurans social, nombor pasport, atau pengenalan lain, gaji, kewarganegaraan, jawatan, apa-apa syer dalam saham atau jawatan pengarah yang dipegang dalam Syarikat, fakta dan syarat-syarat penyertaan andadalam Pelan, butir-butir semua opsyen atau apa-apa hak lain untuk syer dalam saham yang dianugerahkan, dibatalkan, dilaksanakan, terletak hak, tidak diletak hak ataupun bagi faedahanda (“Data”), untuk tujuan yang eksklusif bagi melaksanakan, mentadbir dan menguruskan Pelan tersebut.
Anda juga memberi kuasa untuk membuat apa-apa pemindahan Data, sebagaimana yang diperlukan, kepada broker Pelan yang ditetapkan oleh Syarikat, atau pembekal perkhidmatan pelan saham lain sebagaimana yang mungkin dipilih oleh Syarikat pada masa depan, yang membantu Syarikat dalam pelaksanaan, pentadbiran dan pengurusan Pelan dan/atau dengan sesiapa yang mendepositkan Saham yang diperolehi melalui pelaksanaan Opsyen. Anda mengakui bahawa penerima-penerima ini mungkin berada di negara andaatau di tempat lain, dan bahawa negara penerima (contohnya, Amerika Syarikat) mungkin mempunyai undang-undang privasi data dan perlindungan yang berbeza daripada negara anda, yang mungkin tidak boleh memberi tahap perlindungan yang sama kepada Data. Andafaham bahawa andaboleh meminta senarai nama dan alamat mana-mana penerima Data dengan menghubungi wakil sumber manusia tempatan anda. Anda memberi kuasa kepada Syarikat, pembekal perkhidmatan pelan saham dan mana-mana penerima lain yang mungkin membantu Syarikat (masa sekarang atau pada masa depan)
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managing your participation in the Plan to receive, possess, use, retain and transfer Data, in electronic or other form, for the sole purpose of implementing, administering and managing your participation in the Plan. You understand that Data will be held only as long as is necessary to implement, administer and manage your participation in the Plan. You understand that you may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case, without cost, by contacting in writing “Ask HR” at http://AskHR on AMD Central. Further, you understand that you are providing the consents herein on a purely voluntary basis. If you do not consent, or if you later seek to revoke the consent, your employment status or service and career with the Employer will not be affected; the only consequence of refusing or withdrawing the consent is that the Company would not be able to grant future stock options or other equity awards to you or administer or maintain such awards. Therefore, you understand that refusing or withdrawing your consent may affect your ability to participate in the Plan. For more information on the consequences of the refusal to consent or withdrawal of consent, you understand that you may contact your local human resources representative.
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untuk melaksanakan, mentadbir dan menguruskan penyertaan anda dalam Pelan untuk menerima, memiliki, menggunakan, mengekalkan dan memindahkan Data, dalam bentuk elektronik atau lain-lain, semata-mata dengan tujuan untuk melaksanakan, mentadbir dan menguruskan penyertaan anda dalam Pelan tersebut. Anda memahamibahawa Data akan dipegang hanya untuk tempoh yang diperlukan untuk melaksanakan, mentadbir dan menguruskan penyertaan anda dalam Pelan tersebut. Anda memahamibahawa anda boleh, pada bila-bila masa, melihat data, meminta maklumat tambahan mengenai penyimpanan dan pemprosesan Data, meminta bahawa pindaan-pindaan dilaksanakan ke atas Data atau menolak atau menarik balik persetujuan dalam ini, dalam mana-mana kes, tanpa kos, dengan menghubungi secara bertulis wakil sumber manusia tempatan anda, di mana butir-butir hubungannya adalah “Ask HR” at http://AskHR on AMD Central. Selanjutnya, anda memahami bahawa anda memberikan persetujuan di sini secara sukarela. Jika anda tidak bersetuju, atau jika anda kemudian membatalkan persetujuan anda, status pekerjaan atau perkhidmatan dan kerjaya anda dengan Majikan tidak akan terjejas; satunya akibat jika anda tidak bersetuju atau menarik balik persetujuan anda adalah bahawa Syarikat tidak akan dapat memberikan opsyen saham pada masa depan atau anugerah ekuiti lain kepada anda atau mentadbir atau mengekalkan anugerah tersebut. Oleh itu, anda memahami bahawa keengganan atau penarikan balik persetujuan anda boleh menjejaskan keupayaan anda untuk mengambil bahagian dalam Pelan tersebut. Untuk maklumat lanjut mengenai akibat keengganan anda untuk memberikan keizinan atau penarikan balik keizinan, anda memahamibahawa anda boleh menghubungi wakil sumber manusia tempatan anda.
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Date: May 8, 2017
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/s/ Lisa T. Su
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Lisa T. Su
President and Chief Executive Officer
(Principal Executive Officer)
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Date: May 8, 2017
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/s/ Devinder Kumar
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Devinder Kumar
Senior Vice President,
Chief Financial Officer and Treasurer
(Principal Financial Officer)
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(i.)
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the Quarterly Report on Form 10-Q of the Company for the period ended April 1, 2017 (the "Report") fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and
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(ii.)
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the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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Date: May 8, 2017
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/s/ Lisa T. Su
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Lisa T. Su
President and Chief Executive Officer
(Principal Executive Officer)
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(i.)
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the Quarterly Report on Form 10-Q of the Company for the period ended April 1, 2017 (the "Report") fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and
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(ii.)
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the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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Date: May 8, 2017
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/s/ Devinder Kumar
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Devinder Kumar
Senior Vice President,
Chief Financial Officer and Treasurer
(Principal Financial Officer)
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