PTanner,
I am learning that net loss is different than net change in cash
Absolutely correct.
AMD's net drop in cash was greater than its net income loss even with considerable net borrowing.
Below is AMD's Statment of Cash Flows. Focus on my bold to see where the cash was generated and where it went. Note, for FY2001, AMD's operations generated cash......
What I bolded are the "big ticket" items that caused AMD's cash position to drop.
Cash flows from operating activities:
Net income (loss) $ (60,581) $ 983,026 $ (88,936)
Adjustments to reconcile net income (loss) to net cash
provided by operating activities:
Gain on sale of Vantis - - (432,059)
Gain on sale of Legerity - (336,899) -
Depreciation 601,673 558,378 491,424
Amortization 21,194 20,692 24,096
Provision for doubtful accounts 9,791 8,154 3,543
Impairment of equity investments 27,164 - -
(Increase) decrease in deferred income tax assets (36,052) (19,076) 159,964
Restructuring and other special charges 81,768 - 29,858
Foreign grant and subsidy income (57,156) (35,187) (50,178)
Net loss on disposal of property, plant and equipment 22,371 10,380 10,665
Net loss (gain) realized on sale of
available-for-sale securities 1,565 - (4,250)
Compensation recognized under employee stock plans 4,592 867 2,655
Undistributed income of joint venture (18,879) (11,039) (4,789)
Recognition of deferred gain on sale of building (1,681) (1,681) (1,680)
Changes in operating assets and liabilities:
Increase in accounts receivable (122,174) (140,479) (48,069)
Increase in inventories (36,975) (156,284) (23,138)
Decrease (increase) in prepaid expenses 28,560 79,293 (101,786)
(Increase) decrease in other assets (88,775) (269,392) 55,485
Income tax benefits from employee stock option
exercises - 158,253 -
Increase (decrease) in tax refund receivable and tax
payable (52,288) 57,479 (4,288)
(Refund) receipt of customer deposits under LT purchase
agreements (39,000) 142,500 -
Net (decrease) increase in payables and accrued
liabilities (117,472) 156,567 241,403
--------------------------------------------------------------- ----------- ----------- -----------
Net cash provided by operating activities 167,645 1,205,552 259,920
--------------------------------------------------------------- ----------- ----------- -----------
Cash flows from investing activities:
Purchases of property, plant and equipment (678,865) (805,474) (619,772)
Proceeds from sale of Vantis - - 454,269
Proceeds from sale of Legerity - 375,000 -
Proceeds from sale of property, plant and equipment 1,737 12,899 3,996
Purchases of available-for-sale securities (4,130,769) (4,179,993) (1,579,813)
Proceeds from sale and maturity of available-for-sale
securities 4,376,732 3,781,766 1,598,946
Investment in joint venture (122,356) - -
--------------------------------------------------------------- ----------- ----------- -----------
Net cash used in investing activities (553,521) (815,802) (142,374)
--------------------------------------------------------------- ----------- ----------- -----------
Cash flows from financing activities:
Proceeds from notes payable to banks 63,363 - -
Proceeds from borrowings 308,457 135,789 12,101
Payments on debt and capital lease obligations (137,104) (375,016) (243,762)
Proceeds from foreign grants and subsidies 37,510 15,382 14,341
Proceeds from issuance of stock 36,706 122,994 43,777
Repurchase of common stock (77,220) - -
--------------------------------------------------------------- ----------- ----------- -----------
Net cash provided by (used in) financing activities 231,712 (100,851) (173,543)
--------------------------------------------------------------- ----------- ----------- -----------
Effect of exchange rate changes on cash and cash equivalents (10,005) 8,433 (11,786)
Net increase (decrease) in cash and cash equivalents (164,169) 297,332 (67,783)
--------------------------------------------------------------- ----------- ----------- -----------
Cash and cash equivalents at beginning of year 591,457 294,125 361,908
--------------------------------------------------------------- ----------- ----------- -----------
Cash and cash equivalents at end of year $ 427,288 $ 591,457 $ 294,125
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