Summary
This 8-K filing from Advanced Micro Devices, Inc. (AMD) dated July 21, 2011, primarily serves to disclose the company's financial results for its fiscal second quarter ended July 2, 2011. The report highlights the company's use of non-GAAP financial measures to provide investors with a clearer view of its core operating performance by excluding certain one-time or non-recurring items. These adjustments are detailed for net income, operating income, and gross margin, aiming to enhance comparability across periods. A key element discussed is the change in accounting treatment for AMD's investment in GLOBALFOUNDRIES (GF). The company transitioned from the equity method to the cost method of accounting for its GF investment starting in the first fiscal quarter of 2011. The filing also elaborates on specific adjustments made to GAAP figures, including the exclusion of equity income/loss from GF, a payment made to GF, amortization of acquired intangible assets (related to the ATI acquisition), legal settlement charges, gains from investment sales, and restructuring reversals, all intended to offer a more consistent operational perspective.
Key Highlights
- 1AMD announced its financial results for the fiscal second quarter ended July 2, 2011.
- 2The company is utilizing non-GAAP financial measures (including non-GAAP net income, operating income, and gross margin) to present results, excluding items believed to be non-indicative of core operating performance.
- 3AMD changed its accounting method for its investment in GLOBALFOUNDRIES (GF) from the equity method to the cost method starting in Q1 2011.
- 4Key items excluded in non-GAAP calculations include equity income/loss from GF, a payment to GF, amortization of acquired intangibles, legal settlements, and past restructuring reversals.
- 5The report details adjustments made to GAAP figures to derive various non-GAAP metrics such as non-GAAP net income, non-GAAP operating income, and non-GAAP gross margin.
- 6The company also discusses Adjusted EBITDA and non-GAAP adjusted free cash flow as supplemental performance measures.
- 7The termination of supplier agreements with IBM Credit LLC is noted, impacting the calculation of non-GAAP adjusted free cash flow starting in Q3 2011.