Advanced Micro Devices Annual Report 2021

1 Advanced Micro Devices Annual Report 2021 Form 10-K (NASDAQ:AMD)Published: January 29th, 2021 PDF generated by UNITED STATES SECURITIES AND EXCHANGE COMMISSIONW ashington, 20549 FORM 10-K(Mark One) Annual Report PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF the fiscal year ended December 26, 2020OR TRANSITION Report PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF the transition period from to Commission File Number 001-07882 Advanced Micro Devices , INC.(Exact name of registrant as specified in its charter)Delaware94-1692300(State or other jurisdiction ofincorporation or organization)( EmployerIdentification No.)

2 2485 Augustine DriveSanta Clara, California 95054(Address of principal executive offices)(408) 749-4000(Registrant s telephone number, including area code)Securities registered pursuant to Section 12(b) of the Act:(Title of each class)(Trading symbol)(Name of each exchange on which registered)Common Stock, $ par value per shareAMDThe NASDAQ Global Select MarketSecurities registered pursuant to Section 12(g) of the Act:NoneIndicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act.

3 Yes No Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during thepreceding 12 months (or for such shorter period that the registrant was required to submit such files).

4 Yes No Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth definition of large accelerated filer, accelerated filer, smaller reporting company, and emerging growth company in Rule 12b-2 of the Exchange accelerated filer Accelerated filer Non-accelerated filer Smaller reporting company Emerging growth company If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financialaccounting standards provided pursuant to Section 13(a) of the Exchange Act.

5 Indicate by check mark whether the registrant has filed a Report on and attestation to its management s assessment of the effectiveness of its internal control over financial reportingunder Section 404(b) of the Sarbanes-Oxley Act (15 (b)) by the registered public accounting firm that prepared or issued its audit Report . Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act). Yes No As of June 27, 2020, the aggregate market value of the registrant s common stock held by non-affiliates of the registrant was approximately $ billion based on the reportedclosing sale price of $ per share as reported on The NASDAQ Global Select Market (NASDAQ) on June 26, 2020, which was the last business day of the registrant s mostrecently completed second fiscal the number of shares outstanding of each of the registrant s classes of common stock, as of the latest practicable date.

6 1,211,280,009 shares of common stock, $ parvalue per share, as of January 22, INCORPORATED BY REFERENCEP ortions of the registrant s proxy statement for the 2021 Annual meeting of Stockholders (2021 Proxy Statement) are incorporated into Part III hereof. The 2021 Proxy Statement willbe filed with the Securities and Exchange Commission within 120 days after the registrant s fiscal year ended December 26, I1 ITEM Factors14 ITEM Staff Comments34 ITEM Proceedings35 ITEM Safety Disclosures35 PART II36 ITEM for Registrant s Common Equity, Related stockholder Matters and Issuer Purchases of Equity Securities36 ITEM Financial Data38 ITEM s Discussion and Analysis of Financial Condition and Results of Operations39 ITEM and Qualitative Disclosure About Market Risk48 ITEM Statements and Supplementary Data49 ITEM in and Disagreements with Accountants on Accounting and Financial Disclosure87 ITEM and Procedures87 ITEM Information88 PART III89 ITEM.

7 Executive Officers and Corporate Governance89 ITEM Compensation89 ITEM Ownership of Certain Beneficial Owners and Management and Related stockholder Matters89 ITEM Relationships and Related Transactions and Director Independence89 ITEM Accounting Fees and Services89 PART IV90 ITEM , Financial Statements Schedules90 ITEM 10-K IITEM 1. BUSINESSC autionary Statement Regarding Forward-Looking StatementsThe statements in this Report include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Theseforward-looking statements are based on current expectations and beliefs and involve numerous risks and uncertainties that could cause actual results todiffer materially from expectations.

8 These forward-looking statements speak only as of the date hereof or as of the dates indicated in the statements andshould not be relied upon as predictions of future events, as we cannot assure you that the events or circumstances reflected in these statements will beachieved or will occur. You can identify forward-looking statements by the use of forward-looking terminology including believes, expects, may, will, should, seeks, intends, plans, pro forma, estimates, anticipates, or the negative of these words and phrases, other variations of these wordsand phrases or comparable terminology.

9 The forward-looking statements relate to, among other things: possible impact of future accounting rules onAMD s consolidated financial statements; demand for AMD s products; the growth, change and competitive landscape of the markets in which AMDparticipates; the expected amounts to be received by AMD under the IP licensing agreement and AMD s expected royalty payments from future productsales of the two joint ventures AMD holds equity in with Higon Information Technology Co., Ltd. (THATIC JVs) products to be developed on the basis ofsuch licensed IP; sales patterns of AMD s products; international sales will continue to be a significant portion of total sales in the foreseeable future.

10 ThatAMD s cash, cash equivalents and short-term investment balances together with the availability under that certain revolving credit facility (the RevolvingCredit Facility) made available to AMD and certain of its subsidiaries under the Credit Agreement, will be sufficient to fund AMD s operations includingcapital expenditures over the next 12 months; AMD s ability to obtain sufficient external financing on favorable terms, or at all; AMD s expectation thatbased on the information presently known to management, the potential liability related to AMD s current litigation will not have a material adverse effecton its financial condition, cash flows or results of operations; any amounts in addition to what has been already accrued by AMD for future remediationcosts under clean-up orders will not have a material effect on our financial condition, cash flows or results of operations; we expect to file future patentapplications in both the United States and abroad on significant inventions as we deem appropriate.