UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
(Mark One)
☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
For the fiscal year ended December 26, 2020
OR
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
For the transition period from XXXXXXXXXXto
Commission File Number XXXXXXXXXX
ADVANCED MICRO DEVICES, INC.
(Exact name of registrant as specified in its charter)
Delaware XXXXXXXXXX
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employe
Identification No.)
2485 Augustine Drive
Santa Clara, California 95054
(Address of principal executive offices)
XXXXXXXXXX
(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, $0.01 par value per share AMD The NASDAQ Global Select Market
Securities registered pursuant to Section 12(g) of the Act:
None
Indicate 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. 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 12 months (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 the preceding 12 months
(or for such shorter period that the registrant was required to submit such files): 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 company. See definition of
“large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large 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 financial accounting standards
provided pursuant to Section 13(a) of the Exchange Act. ☐
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 reporting under Section
404(b) of the Sa
anes-Oxley Act (15 U.S.C.7262(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 $58.5 billion based on the reported closing sale price of
$50.10 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 most recently completed second fiscal quarter.
Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date: 1,211,280,009 shares of common stock, $0.01 par value per share, as
of January 22, 2021.
DOCUMENTS INCORPORATED BY REFERENCE
Portions 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 will be filed with the
U.S. Securities and Exchange Commission within 120 days after the registrant’s fiscal year ended December 26, 2020.
INDEX
PART I 1
ITEM 1. Business 1
ITEM 1A. Risk Factors 14
ITEM 1B. Unresolved Staff Comments 34
ITEM 2. Properties 34
ITEM 3. Legal Proceedings 35
ITEM 4. Mine Safety Disclosures 35
PART II 36
ITEM 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 36
ITEM 6. Selected Financial Data 38
ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 39
ITEM 7A. Quantitative and Qualitative Disclosure About Market Risk 48
ITEM 8. Financial Statements and Supplementary Data 49
ITEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 87
ITEM 9A. Controls and Procedures 87
ITEM 9B. Other Information 88
PART III 89
ITEM 10. Directors, Executive Officers and Corporate Governance 89
ITEM 11. Executive Compensation 89
ITEM 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 89
ITEM 13. Certain Relationships and Related Transactions and Director Independence 89
ITEM 14. Principal Accounting Fees and Services 89
PART IV 90
ITEM 15. Exhibits, Financial Statements Schedules 90
ITEM 16. Form 10-K Summary 96
SIGNATURES. 96
PART I
ITEM XXXXXXXXXXBUSINESS
Cautionary Statement Regarding Forward-Looking Statements
The statements in this report include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-
looking statements are based on cu
ent expectations and beliefs and involve numerous risks and uncertainties that could cause actual results to diffe
materially from expectations. These forward-looking statements speak only as of the date hereof or as of the dates indicated in the statements and should not
e relied upon as predictions of future events, as we cannot assure you that the events or circumstances reflected in these statements will be achieved 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 words and phrases o
comparable terminology. The forward-looking statements relate to, among other things: possible impact of future accounting rules on AMD’s consolidated
financial statements; demand for AMD’s products; the growth, change and competitive landscape of the markets in which AMD participates; the expected
amounts to be received by AMD under the IP licensing agreement and AMD’s expected royalty payments from future product sales of the two joint ventures
AMD holds equity in with Higon Information Technology Co., Ltd. (THATIC JVs) products to be developed on the basis of such licensed IP; sales patterns of
AMD’s products; international sales will continue to be a significant portion of total sales in the foreseeable future; that AMD’s cash, cash equivalents and short-
term investment balances together with the availability under that certain revolving credit facility (the Revolving Credit Facility) made available to AMD and
certain of its subsidiaries under the Credit Agreement, will be sufficient to fund AMD’s operations including capital expenditures over the next 12 months; AMD’s
ability to obtain sufficient external financing on favorable terms, or at all; AMD’s expectation that based on the information presently known to management, the
potential liability related to AMD’s cu
ent litigation will not have a material adverse effect on its financial condition, cash flows or results of operations; any
amounts in addition to what has been already accrued by AMD for future remediation costs 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 patent applications in both the United States and a
oad on significant inventions as we
deem appropriate; anticipated ongoing and increased costs related to enhancing and implementing information security controls; revenue allocated to
emaining performance obligations that are unsatisfied which will be recognized over the next 12 months; all unbilled accounts receivables are expected to be
illed and collected within 12 months; a small number of customers will continue to account for a substantial part of AMD’s revenue in the future; and the
acquisition of Xilinx, Inc. is cu
ently expected to close by the end of calendar year 2021. For a discussion of the factors that could cause actual results to diffe
materially from the forward-looking statements, see “Part I, Item 1A-Risk Factors” and the “Financial Condition” section set forth in “Part II, Item 7-
Management’s Discussion and Analysis of Financial Condition and Results of Operations,” or MD&A, and such other risks and uncertainties as set forth below
in this report or detailed in our other Securities and Exchange Commission (SEC) reports and filings. We assume no obligation to update forward-looking
statements.
General
We are a global semiconductor company primarily offering:
• x86 microprocessors, as standalone devices or as incorporated into an accelerated processing unit (APU), chipsets, discrete and integrated graphics
processing units (GPUs), data center and professional GPUs, and development services; and
• server and embedded processors, semi-custom System-on-Chip (SoC) products, development services and technology for game consoles.
From time to time, we may also sell or license portions of our intellectual property (IP) portfolio.
For financial information about geographic areas and for segment information with respect to revenues and operating results, refer to the information set forth in
Note 14 of our consolidated financial statements.
We use a 52 or 53 week fiscal year ending on the last Saturday in December. References in this report to 2020, 2019 and 2018 refer to the fiscal year unless
explicitly stated otherwise.
1
Pending Acquisition
On October 26, 2020, we entered into an Agreement and Plan of Merger (the Merger Agreement) with Thrones Merger Sub, Inc., our wholly owned subsidiary
(Merger Sub), and Xilinx, Inc. (Xilinx), whereby Merger Sub will merge with and into Xilinx (the Merger), with Xilinx surviving such Merger as a wholly owned
subsidiary of ours. Under the Merger Agreement, at the effective time of the Merger (the Effective Time), each share of common stock of Xilinx (Xilinx Common
Stock) issued and outstanding immediately prior to the Effective Time (other than treasury shares and any shares of Xilinx Common Stock held directly by us o
Merger Sub) will be converted into the right to receive XXXXXXXXXXfully paid and non-assessable shares of our common stock and, if applicable, cash in lieu of
fractional shares, subject to any applicable withholding. As of the signing of the Merger Agreement, the transaction was valued at $35 billion. The actual
valuation of the transaction could differ significantly from the estimated amount due to movements in the price of our Common Stock, the number of shares of
Xilinx common stock outstanding on the closing