EX-99.1 10 dex991.htm UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Unaudited Pro Forma Condensed Consolidated Financial Statements

Exhibit 99.1

 

     For the Nine Months Ended Sept. 25, 2005

 
     Actual

    Pro Forma
Adjustments(1)


    Pro Forma
Adjustments


    Pro Forma

 
     (in thousands, except per share amounts)  

Unaudited Pro Forma Condensed Consolidated Statement of Operations Data:

                              

Net sales

   $ 4,009,301     $ (1,425,362 )         $ 2,583,939  

Expenses:

                              

Cost of sales

     2,469,663       (1,313,802 )   (7,221 )(2)     1,148,641  

Research and development

     814,724       (219,526 )           595,197  

Marketing, general and administrative

     698,974       (137,818 )           561,155  
    


 


 

 


Operating income

     25,940       245,784             225,234  

Interest income and other, net

     13,126       (3,772 )           9,354  

Interest expense

     (80,513 )     17,448             (63,065 )
    


 


 

 


Income (loss) before minority interest and income taxes

     (41,447 )     259,461             225,234  

Minority interest in net loss of subsidiaries

     105,985             (118,719 )(3)     (12,734 )

(Benefit) provision for income taxes

     (5,358 )     13,580             8,222  

Equity share in net loss of Spansion

                   (97,247 )(4)     (97,247 )

Net income (loss)

   $ 69,896                   $ 107,031  
    


               


Net income (loss) per share:

                              

Basic

   $ 0.18                   $ 0.27  

Diluted

   $ 0.17                   $ 0.26  

Shares used in per share calculation:

                              

Basic

     395,839                     395,839  

Diluted

     409,586                     409,586  

(1) These pro forma adjustments are made to exclude the income statement line items of Spansion Inc. that were previously consolidated as a majority owned subsidiary.
(2) This adjustment is made to include the amortization of the excess of fair value over net book value of assets acquired pursuant to the formation of Spansion Inc. on June 30, 2003.
(3) This adjustment represents the elimination of minority interest share of the Spansion Inc.’s net loss.
(4) This adjustment represents AMD’s 37.9 percent equity share in the net loss of Spansion Inc.


     For the Year Ended Dec. 26, 2004

 
     Actual

    Pro Forma
Adjustments(1)


    Pro Forma
Adjustments


    Pro Forma

 
     (in thousands, except per share amounts)  

Unaudited Pro Forma Condensed Consolidated Statement of Operations Data:

                              

Net sales

   $ 5,001,435     $ (2,342,542 )         $ 2,658,893  

Expenses:

                              

Cost of sales

     3,032,586       (1,837,295 )   (9,598 )(2)     1,185,692  

Research and development

     934,574       (273,467 )           661,107  

Marketing, general and administrative

     807,011       (200,459 )           606,552  

Restructuring and other special charges (recoveries), net

     5,456       —               5,456  
    


 


 

 


Operating income

     221,809       (31,320 )           200,087  

Interest income and other, net

     (31,150 )     (6,513 )           (37,663 )

Interest expense

     (112,329 )     21,115             (91,214 )
    


 


 

 


Income (loss) before minority interest and income taxes

     78,330       (16,719 )           71,210  

Minority interest in net loss of subsidiaries

     18,664             (22,857 )(3)     (4,194 )

(Benefit) provision for income taxes

     5,838       8,908             14,746  

Equity share in net loss of Spansion

                   (7,467 )(4)     (7,467 )

Net income (loss)

   $ 91,156                   $ (44,803 )
    


               


Net income (loss) per share:

                              

Basic

   $ 0.25                   $ 0.12  

Diluted

   $ 0.25                   $ 0.12  

Shares used in per share calculation:

                              

Basic

     358,886                     358,886  

Diluted

     371,066                     371,066  

(1) These pro forma adjustments are made to exclude the income statement line items of Spansion Inc. that were previously consolidated as a majority owned subsidiary.
(2) This adjustment is made to include the amortization of the excess of fair value over net book value of assets acquired pursuant to the formation of Spansion Inc. on June 30, 2003.
(3) This adjustment represents the elimination of minority interest share of the Spansion Inc.’s net loss.
(4) This adjustment represents AMD’s 37.9 percent equity share in the net loss of Spansion Inc.


     As of Sept. 25, 2005

 
     Actual

    Pro Forma
Adjustments(1)


    Pro Forma
Adjustments(2)


    Pro Forma
Adjustments(3)


   

Pro Forma

Adjustments


    Pro Forma

 
     (in thousands, except per share amounts)        

Unaudited Pro Forma Condensed Consolidated Balance Sheet Data:

                                                

ASSETS

                                                

Current assets:

                                                

Cash and cash equivalents

   $ 806,115     $ (119,024 )   $       $               $ 687,091  

Short-term investments

     536,052       —                                 536,052  
    


 


 


 


         


Total cash and cash equivalents and short-term investments

     1,342,167       (119,024 )     —         —                 1,223,143  

Accounts receivable

     673,211       10,756                               683,967  

Accounts receivable from related party

     204,383       (204,383 )             80,780               80,780  

Allowance for doubtful accounts

     (15,795 )     470                               (15,325 )
    


 


 


 


         


Total accounts receivable, net

     861,799       (193,157 )     —         80,780               749,422  

Inventories:

                                                

Raw materials

     49,738       (25,000 )                             24,738  

Work-in-process

     677,991       (384,723 )                             293,268  

Finished goods

     204,034       (72,511 )                             131,523  
    


 


 


 


         


Total inventories

     931,763       (482,233 )     —         —                 449,530  

Deferred income taxes

     54,232       (27,503 )                             26,729  

Prepaid expenses and other current assets

     263,878       (19,517 )                             244,361  

Notes receivable from related party

                             340,886               340,886  

Other receivable from related party

     8,564       (8,564 )                             —    
    


 


 


 


         


Total current assets

     3,462,403       (849,998 )     —         421,666               3,034,071  

Property, plant and equipment:

                                                

Land and land improvements

     68,792       (36,232 )                             32,560  

Buildings and leasehold improvements

     2,471,263       (1,395,349 )                             1,075,914  

Equipment

     7,774,795       (4,369,352 )     (39,860 )                     3,365,583  

Construction in progress

     1,168,906       (201,107 )                             967,799  
    


 


 


 


         


Total property, plant and equipment

     11,483,756       (6,002,040 )     (39,860 )     —                 5,441,856  

Accumulated depreciation and amortization

     (7,162,372 )     4,355,483                               (2,806,889 )
    


 


 


 


         


Property, plant and equipment, net

     4,321,384       (1,646,557 )     (39,860 )     —                 2,634,967  

Other assets

     376,169       (38,389 )     (25,698 )                     312,082  

Equity Investment

             988,335       50,780       (336,802 )             702,313  
    


 


 


 


 


 


Total assets

   $ 8,159,956     $ (1,546,609 )   $ (14,778 )   $ 84,864     $ (118,560 )   $ 6,683,433  
    


 


 


 


 


 


                                               —    

LIABILITIES AND STOCKHOLDERS’ EQUITY

                                                

Current liabilities:

                                                

Notes payable to bank under revolving loans

   $ 75,656       (75,656 )                           $ —    

Accounts payable

     901,708       (296,998 )                             604,710  

Accounts payable to related party

     39,943       (39,943 )             203,424               203,424  

Accrued compensation and benefits

     232,446       (60,838 )                             171,608  

Accrued liabilities

     390,213       (41,649 )                             348,564  

Accrued royalties to related party

     4,118       (4,118 )                             —    

Accrued liabilities to Spansion Pension Trust

     8,564       (8,564 )                             —    

Restructuring accruals, current portion

     21,355       (161 )                             21,194  

Income taxes payable

     12,245       (1,934 )                             10,311  

Deferred income on shipments to distributors

     163,652       (27,277 )                             136,375  

Current portion of long-term debt and capital lease obligations

     184,872       (165,487 )                             19,385  

Current portion of long-term debt payable to related party

     40,000       (40,000 )                             —    

Other current liabilities

     137,583       187                               137,770  
    


 


 


 


 


 


Total current liabilities

     2,212,355       (762,439 )     —         203,424               1,653,340  

Deferred income taxes

     50,630       (26,032 )                             24,598  

Long-term debt and capital lease obligations, less current portion

     1,708,872       (158,470 )                             1,550,402  

Long-term debt payable to related party

     —         —                                 —    

Other long-term liabilities

     436,802       (21,876 )     (14,778 )                     400,148  

Minority interest

     777,052       (577,791 )                             199,261  

Commitments and contingencies

                                                

Stockholders’ equity:

                                                

Capital stock:

                                                

Common stock

     4,020       —                                 4,020  

Capital in excess of par value

     2,528,219       —                                 2,528,219  

Treasury stock, at cost

     (89,715 )     —                                 (89,715 )

Retained earnings

     378,067       —                 (118,560 )             259,507  

Accumulated other comprehensive income

     153,654       —                                 153,654  
    


 


 


 


         


Total stockholders’ equity

     2,974,245       —         —         (118,560 )             2,855,685  
    


 


 


 


         


Total liabilities and stockholders’ equity

   $ 8,159,956       (1,546,609 )     (14,778 )     84,864             $ 6,683,433  
    


 


 


 


         



(1) These adjustments are made to exclude the balance sheet line items of Spansion Inc. that were previously consolidated as a majority owned subsidiary.
(2) These adjustments are made to exclude the impact of the remaining unamortized balances representing the excess of fair value over net book value of assets acquired and liabilities assumed pursuant to the formation of Spansion Inc. on June 30, 2003.
(3) These adjustments are made to include the receivable and payable balances between the Company and Spansion Inc that were previously eliminated upon consolidation as well as the estimated loss on the dilution of the Company’s ownership interest in Spansion from 60 percent to 37.9 percent as a result of Spansion’s IPO. Because the estimated loss was calculated based on Spansion’s net book value as of September 25, 2005 the actual amount of loss will be different as it will be based on Spansion’s net book value as of December 20, 2005.