What is the primary purpose of this 8-K filing?

This 8-K filing primarily serves to announce Advanced Micro Devices, Inc. (AMD)'s financial results for the fiscal quarter ended September 26, 2009, and to detail the non-GAAP financial measures used to present these results. It also provides context regarding the company's manufacturing joint venture, GLOBALFOUNDRIES (GF).

Why is AMD providing non-GAAP financial measures?

AMD is providing non-GAAP financial measures because management believes they make it easier for investors to compare current and historical period operating results. These measures exclude certain expenses and gains that are not considered indicative of ongoing operating performance, such as amortization of acquired intangibles, restructuring charges, and gains on debt repurchases.

What is the "AMD Product Company" and why are its results presented separately?

The "AMD Product Company" refers to AMD's financial results on a standalone basis, excluding its Foundry segment (GLOBALFOUNDRIES). Since AMD is required to consolidate GF's results for GAAP reporting, it presents non-GAAP measures for the 'AMD Product Company' to give investors a clearer view of AMD's core business performance without the impact of the foundry operations and intersegment eliminations.

What specific adjustments are being made in the non-GAAP reporting?

Key adjustments include excluding the gross margin benefit from selling inventory written down in Q4 2008, amortization of intangible assets acquired in the ATI acquisition, certain restructuring charges, and gains realized from repurchasing debt. For the 'AMD Product Company,' additional exclusions include the net loss and operating results of the Foundry segment and related intersegment eliminations, as well as items related to noncontrolling interests in GF.

AMD 8-K: Earnings & Results & Regulation FD

Summary

Advanced Micro Devices, Inc. (AMD) filed an 8-K on October 15, 2009, to disclose financial results for the fiscal quarter ended September 26, 2009. A key aspect of this filing is the company's use of non-GAAP financial measures, which they believe offer investors a clearer view of operational performance by excluding certain non-recurring or non-operational items. This includes the impact of the ongoing manufacturing joint venture with GLOBALFOUNDRIES (GF), which AMD is required to consolidate but presents separate non-GAAP measures for its "AMD Product Company" to isolate core business performance. The non-GAAP adjustments focus on items like the amortization of acquired intangible assets (primarily related to the ATI acquisition), restructuring charges, a gain on debt buyback, and the impact of inventory write-downs from the prior year. The company also provides "Adjusted EBITDA" as a metric for assessing its capital structure and borrowing capacity. Investors should note that these non-GAAP measures are presented to supplement, not replace, U.S. GAAP financial statements.

Key Highlights

1AMD announced its financial results for the fiscal quarter ended September 26, 2009.
2The company is providing extensive non-GAAP financial measures to offer a clearer view of operational performance.
3Non-GAAP adjustments exclude items such as amortization of acquired intangibles, restructuring charges, and gains from debt repurchases.
4AMD is presenting financial results for its 'AMD Product Company' on a non-GAAP basis, excluding the consolidated GLOBALFOUNDRIES (GF) foundry segment.
5This separate reporting for the 'AMD Product Company' aims to provide visibility into core business results, independent of the GF consolidation requirement.
6The filing details adjustments made for the gross margin benefit from selling previously written-down inventory.
7"Adjusted EBITDA" is provided as a metric for assessing capital structure and borrowing capacity.

ADVANCED MICRO DEVICES INC 8-K Report, Financial Results (Oct 15, 2009)

Summary

Key Highlights

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