ADVANCED MICRO DEVICES INC MANAGEMENT REPORT AND ANALYSIS OF FINANCIAL POSITION AND RESULTS OF OPERATIONS (Form 10-K)


The following discussion should be read in conjunction with the consolidated
financial statements as of December 25, 2021 and December 26, 2020 and for each
of the three years in the period ended December 25, 2021 and related notes,
which are included in this Annual Report on Form 10-K as well as with the other
sections of this Annual Report on Form 10-K, "Part II, Item 8: Financial
Statements and Supplementary Data."
Introduction
In this section, we will describe the general financial condition and the
results of operations of Advanced Micro Devices, Inc. and its wholly-owned
subsidiaries (collectively, "us," "our" or "AMD"), including a discussion of our
results of operations for 2021 compared to 2020, an analysis of changes in our
financial condition and a discussion of our off-balance sheet arrangements.
Discussions of 2019 items and year-to-year comparisons between 2020 and 2019
that are not included in this Form 10-K can be found in "Management's Discussion
and Analysis of Financial Condition and Results of Operations" in Part II, Item
7 of our Annual Report on Form 10-K for the fiscal year ended December 26, 2020.
Overview
Our leadership portfolio of high-performance products, robust customer demand,
and consistent execution helped drive strong financial results in 2021. Net
revenue for 2021 was $16.4 billion, an increase of 68% compared to 2020 net
revenue of $9.8 billion. Gross margin, as a percentage of net revenue for 2021,
was 48%, compared to 45% in 2020. Our operating income for 2021 improved to $3.6
billion compared to operating income of $1.4 billion for 2020. Our net income
for 2021 improved to $3.2 billion compared to $2.5 billion in the prior year.
Cash, cash equivalents and short-term investments as of December 25, 2021 were
$3.6 billion, compared to $2.3 billion at the end of 2020. The aggregate
principal amount of total debt as of December 25, 2021 was $313 million,
compared to $338 million as of December 26, 2020.
We introduced a number of high-performance products in 2021. We expanded the AMD
Ryzen mobile processor family with the launch of the AMD Ryzen 5000 Series
Mobile Processors with "Zen 3" core architecture designed for gamers, creators
and professionals. We also announced the AMD Ryzen PRO 5000 Series Mobile
Processors powered with our "Zen 3" core architecture for business laptops. AMD
Ryzen PRO Series Mobile Processors are built to provide powerful computing
experiences with security features for demanding business environments like
remote working.
We also launched a number of graphics products during 2021, including the AMD
Radeon RX 6700 XT graphics card built on 7 nm process technology and AMD RDNA 2
gaming architecture to deliver performance and power efficiency, as well as the
AMD Radeon RX 6600 XT graphics card, designed to deliver high-frame rate,
high-fidelity and highly responsive 1080p gaming experience. For mobile
graphics, we introduced the AMD Radeon RX 6000M Series Mobile Graphics designed
for high-performance gaming laptops and we announced the AMD Advantage™ Design
Framework to deliver best-in-class gaming experiences. AMD Advantage systems
combine AMD Radeon RX 6000M Series Mobile Graphics, AMD Radeon Software and AMD
Ryzen 5000 Series Mobile Processors with AMD smart technologies. We also
introduced the AMD Instinct MI200 series accelerators based on the 2nd Gen AMD
CDNA architecture, optimized for HPC and AI/ML (Artificial Intelligence/Machine
Learning) workloads. The MI200 series includes the MI250 Open Accelerator Module
(OAM) form factor for purpose-built HPC/AI platforms and the MI210 PCIe form
factor for mainstream server platforms. We also introduced our AMD FidelityFX
Super Resolution software for game developers to help deliver a high-quality,
high-resolution gaming experience. For professional graphics, we announced our
AMD Radeon PRO W6000 series workstation graphics for professional users who have
ultra-high resolution media projects, complex design and engineering simulations
and advanced image and video editing applications. We also introduced the AMD
Radeon PRO W6000X series graphics for the Mac Pro, designed to power a wide
variety of demanding professional applications and workloads.
For the server business, we introduced the next generation of AMD EPYC
processors with the AMD EPYC 7003 Series CPUs for high-performance computing,
cloud and enterprise customers. The EPYC 7003 series processors have up to 64
Zen 3 cores per processor and per-core cache memory and also include security
features through AMD Infinity Guard to help drive faster times to results and
improve business outcomes.
Although the current COVID-19 pandemic continues to impact our business
operations and practices, we experienced limited disruptions during 2021. We are
taking safety measures to protect our employees who are in
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the office and support those employees who work from home. We are also
monitoring our operations and public health measures implemented by governmental
authorities in response to the pandemic.
COVID-19 also continues to impact the global supply chain, causing disruptions
to service providers, logistics and the flow and availability of supplies and
products. Despite these challenges, we took action to maintain a stable supply
of materials to meet our production requirements and delivered incremental
supply throughout the year. We also experienced strong customer demand in 2021
and made strategic investments through long-term purchase commitments and
prepayment arrangements in our supply chain to secure additional capacity to
support future revenue growth. For example, we amended our Wafer Supply
Agreement (WSA) with GLOBALFOUNDRIES Inc. (GF) in May 2021 (the A&R Seventh
Amendment) and in December 2021 (the Amendment) to modify certain terms of the
WSA applicable to wafer purchases at the 12 nm and 14 nm technology nodes from
December 23, 2021 and continuing through December 31, 2025. Under the Amendment,
GF will provide a minimum annual capacity allocation to us for years 2022
through 2025 and we have corresponding annual wafer targets. We also agreed to
wafer pricing through 2025, and we are obligated to pre-pay GF certain amounts
for those wafers in 2022 and 2023. The Amendment does not affect any of the
prior exclusivity commitments that were removed under the A&R Seventh Amendment.
We have full flexibility to contract with any wafer foundry with respect to all
products manufactured at any technology node.
Due to our strong financial results and growing cash flow generation, in May
2021, our Board of Directors approved a stock repurchase program (Repurchase
Program) to purchase up to $4 billion of our outstanding common stock in the
open market. During the twelve months ended December 25, 2021, we repurchased
16.7 million shares of our common stock under the Repurchase Program, for a
total cash outlay of $1.8 billion. As of December 25, 2021, $2.2 billion
remained available for future stock repurchases under this program. The
Repurchase Program does not obligate us to acquire any common stock, has no
termination date and may be suspended or discontinued at any time.
As part of our strategy to establish AMD as the industry's high performance
computing leader, we announced in October 2020 that we entered into a definitive
agreement to acquire Xilinx, Inc. in an all-stock transaction. The completion of
the transaction remains subject to certain closing conditions, including
regulatory approval, and is currently expected to close in the first quarter of
2022.
We intend the discussion of our financial condition and results of operations
that follows to provide information that will assist in understanding our
financial statements, the changes in certain key items in those financial
statements from period to period, the primary factors that resulted in those
changes, and how certain accounting principles, policies and estimates affect
our financial statements.
Critical Accounting Estimates
Our discussion and analysis of our financial condition and results of operations
are based upon our consolidated financial statements, which have been prepared
in accordance with U.S. generally accepted accounting principles (U.S. GAAP).
The preparation of our financial statements requires us to make estimates and
judgments that affect the reported amounts in our consolidated financial
statements. We evaluate our estimates on an on-going basis, including those
related to our revenue, inventories, goodwill and income taxes. We base our
estimates on historical experience and on various other assumptions that we
believe to be reasonable under the circumstances, the results of which form the
basis for making judgments about the carrying values of assets and liabilities.
Although actual results have historically been reasonably consistent with
management's expectations, the actual results may differ from these estimates or
our estimates may be affected by different assumptions or conditions.
Management believes the following critical accounting estimates are the most
significant to the presentation of our financial statements and require the most
difficult, subjective and complex judgments.
Revenue Allowances. Revenue contracts with our customers include variable
amounts which we evaluate under ASC 606-10-32-8 through 14 in order to determine
the net amount of consideration to which we are entitled and which we recognize
as revenue. We determine the net amount of consideration to which we are
entitled by estimating the most likely amount of consideration we expect to
receive from the customer after adjustments to the contract price for rights of
return and rebates to our OEM customers and rights of return, rebates and price
protection on unsold merchandise to our distributor customers.
We base our determination of necessary adjustments to the contract price by
reference to actual historical activity and experience, including actual
historical returns, rebates and credits issued to OEM and distributor customers
adjusted, as applicable, to include adjustments, if any, for known events or
current economic conditions, or both.
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Our estimates of necessary adjustments for distributor price incentives and
price protection on unsold products held by distributors are based on actual
historical incentives provided to distributor customers and known future price
movements based on our internal and external market data analysis.
Our estimates of necessary adjustments for OEM price incentives utilize, in
addition to known pricing agreements, actual historical rebate attainment rates
and estimates of future OEM rebate program attainment based on internal and
external market data analysis.
We offer incentive programs through cooperative advertising and marketing
promotions. Where funds provided for such programs can be estimated, we
recognize a reduction to revenue at the time the related revenue is recognized;
otherwise, we recognize such reduction to revenue at the later of when: i) the
related revenue transaction occurs; or ii) the program is offered. For
transactions where we reimburse a customer for a portion of the customer's cost
to perform specific product advertising or marketing and promotional activities,
such amounts are recognized as a reduction to revenue unless they qualify for
expense recognition.
We also provide limited product return rights to certain OEMs and to most
distribution customers. These return rights are generally limited to a
contractual percentage of the customer's prior quarter shipments, although, from
time to time we may approve additional product returns beyond the contractual
arrangements based on the applicable facts and circumstances. In order to
estimate adjustments to revenue to account for these returns, including product
restocking rights provided to distributor and OEM customers, we utilize
relevant, trended actual historical product return rate information gathered,
adjusted for actual known information or events, as applicable.
Overall, our estimates of adjustments to contract price due to variable
consideration under our contracts with OEM and distributor customers, based on
our assumptions and include adjustments, if any, for known events, have been
materially consistent with actual results; however, these estimates are subject
to management's judgment and actual provisions could be different from our
estimates and current provisions, resulting in future adjustments to our revenue
and operating results.
Inventory Valuation. We value inventory at standard cost, adjusted to
approximate the lower of actual cost or estimated net realizable value using
assumptions about future demand and market conditions. Material assumptions we
use to estimate necessary inventory carrying value adjustments can be unique to
each product and are based on specific facts and circumstances. In determining
excess or obsolescence reserves for products, we consider assumptions such as
changes in business and economic conditions, other-than-temporary decreases in
demand for our products, and changes in technology or customer requirements. In
determining the lower of cost or net realizable value reserves, we consider
assumptions such as recent historical sales activity and selling prices, as well
as estimates of future selling prices. If in any period we anticipate a change
in assumptions such as future demand or market conditions to be less favorable
than our previous estimates, additional inventory write-downs may be required
and would be reflected in cost of sales, resulting in a negative impact to our
gross margin in that period. If in any period we are able to sell inventories
that had been written down to a level below the ultimate realized selling price
in a previous period, related revenue would be recorded with a lower or no
offsetting charge to cost of sales resulting in a net benefit to our gross
margin in that period. Overall, our estimates of inventory carrying value
adjustments have been materially consistent with actual results.
Goodwill. We perform our goodwill impairment analysis as of the first day of the
fourth quarter of each year and, if certain events or circumstances indicate
that an impairment loss may have been incurred, on a more frequent basis. The
analysis may include both qualitative and quantitative factors to assess the
likelihood of an impairment.
We first analyze qualitative factors to determine if it is more likely than not
that the fair value of a reporting unit exceeds its carrying amount. Qualitative
factors include industry and market considerations, overall financial
performance, share price trends and market capitalization and Company-specific
events. If we conclude it is more likely than not that the fair value of a
reporting unit exceeds its carrying amount, we do not proceed to perform a
quantitative impairment test.
If we conclude it is more likely than not that the fair value of the reporting
unit is less than its carrying value, a quantitative goodwill impairment test
will be performed by comparing the fair value of each reporting unit to its
carrying value. A quantitative impairment analysis, if necessary, considers the
income approach, which requires estimates of the present value of expected
future cash flows to determine a reporting unit's fair value. Significant
estimates include revenue growth rates and operating margins used to calculate
projected future cash flows, discount rates, and future economic and market
conditions.
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A goodwill impairment charge is recognized for the amount by which a reporting
unit's fair value is less than its carrying value, not to exceed the total
amount of goodwill allocated to that reporting unit.
Income Taxes. In determining taxable income for financial statement reporting
purposes, we must make certain estimates and judgments. These estimates and
judgments are applied in the calculation of certain tax liabilities and in the
determination of the recoverability of deferred tax assets which arise from
temporary differences between the recognition of assets and liabilities for tax
and financial statement reporting purposes.
We regularly assess the likelihood that we will be able to recover our deferred
tax assets. Unless recovery is considered more-likely-than-not (a probability
level of more than 50%), we will record a charge to income tax expense in the
form of a valuation allowance for the deferred tax assets that we estimate will
not ultimately be recoverable or maintain the valuation allowance recorded in
prior periods. When considering all available evidence, if we determine it is
more-likely-than-not we will realize our deferred tax assets, we will reverse
some or all of the existing valuation allowance, which would result in a credit
to income tax expense and the establishment of an asset in the period of
reversal.
In determining the need to establish or maintain a valuation allowance, we
consider the four sources of jurisdictional taxable income: (i) carryback of net
operating losses to prior years; (ii) future reversals of existing taxable
temporary differences; (iii) viable and prudent tax planning strategies; and
(iv) future taxable income exclusive of reversing temporary differences and
carryforwards.
Through the end of 2021, we continue to maintain a valuation allowance of
approximately $1.7 billion for certain federal, state, and foreign tax
attributes. The federal valuation allowance maintained is due to limitations,
under Internal Revenue Code Section 382 or 383, separate return loss year rules,
or dual consolidated loss rules. Certain state and foreign valuation allowances
are maintained due to a lack of sufficient sources of future taxable income.
In addition, the calculation of our tax liabilities involves addressing
uncertainties in the application of complex, multi-jurisdictional tax rules and
the potential for future adjustment of our uncertain tax positions by the
Internal Revenue Service or other taxing authorities.
Results of Operations
We report our financial performance based on the following two reportable
segments: Computing and Graphics, and Enterprise, Embedded and Semi-Custom.
Additional information on our reportable segments is contained in Note 14 -
Segment Reporting of the Notes to Financial Statements (Part II, Item 8 of this
Form 10-K).
Our operating results tend to vary seasonally. Historically, our net revenue has
been generally higher in the second half of the year than in the first half of
the year, although market conditions and product transitions could impact these
trends.
The following table provides a summary of net revenue and operating income
(loss) by segment for 2021 and 2020:
                                        December 25, 2021       December 26, 2020
                                                      (In millions)
Net revenue:
Computing and Graphics                 $            9,332      $            6,432
Enterprise, Embedded and Semi-Custom                7,102                   3,331

Total net revenue                      $           16,434      $            9,763
Operating income (loss):
Computing and Graphics                 $            2,090      $            1,266
Enterprise, Embedded and Semi-Custom                1,979                     391
All Other                                            (421)                   (288)
Total operating income                 $            3,648      $            1,369


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Computing and Graphics
Computing and Graphics net revenue of $9.3 billion in 2021 increased by 45%,
compared to $6.4 billion in 2020, primarily as a result of a 57% increase in
average selling price, partially offset by an 8% decrease in unit shipments. The
increase in average selling price was primarily driven by a richer mix of Ryzen,
Radeon and AMD Instinct products. The lower unit shipments were primarily driven
by a strategic focus on premium and higher end products in a tight supply
environment.
Computing and Graphics operating income was $2.1 billion in 2021 compared to
$1.3 billion in 2020. The increase in operating income was primarily driven by
higher revenue and improved margin in the segment which more than offset higher
operating expenses. Operating expenses increased for the reasons outlined under
"Expenses" below.
Enterprise, Embedded and Semi-Custom
Enterprise, Embedded and Semi-Custom net revenue of $7.1 billion in 2021
increased by 113% compared to net revenue of $3.3 billion in 2020, primarily
driven by higher sales of our semi-custom products and EPYC server processors.
Enterprise, Embedded and Semi-Custom operating income was $2.0 billion in 2021
compared to $391 million in 2020. The increase in operating income was primarily
due to the higher revenue and improved margin in the segment which more than
offset higher operating expenses. Operating expenses increased for the reasons
outlined under "Expenses" below.
All Other
All Other operating loss of $421 million in 2021 included stock-based
compensation expense of $379 million and acquisition-related costs of $42
million.
All Other operating loss of $288 million in 2020 included stock-based
compensation expense of $274 million and acquisition-related costs of $14
million.
Comparison of Gross Margin, Expenses, Licensing Gain, Interest Expense, Other
Income (Expense) and Income Taxes
The following is a summary of certain consolidated statement of operations data
for 2021 and 2020:
                                                                December 25, 2021                               December 26, 2020
                                                                             (In millions, except for percentages)
Net revenue                                                  $            16,434                               $           9,763
Cost of sales                                                              8,505                                           5,416
Gross profit                                                               7,929                                           4,347
Gross margin                                                                  48    %                                         45  %
Research and development                                                   2,845                                           1,983
Marketing, general and administrative                                      1,448                                             995

Licensing gain                                                               (12)                                              -

Interest expense                                                             (34)                                            (47)
Other income (expense), net                                                   55                                             (47)
Income tax provision (benefit)                                               513                                          (1,210)


Gross Margin
Gross margin as a percentage of net revenue was 48% in 2021 compared to 45% in
2020. The increase in gross margin was primarily driven by a richer mix of EPYC,
Radeon and Ryzen processor sales.
Expenses
Research and Development Expenses
Research and development expenses of $2.8 billion in 2021 increased by $862
million, or 43%, compared to $2.0 billion in 2020. The increase was primarily
driven by an increase in product development costs due to an increase in
headcount and higher annual employee incentives driven by improved financial
performance.
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Marketing, General and Administrative Expenses
Marketing, general and administrative expenses of $1.4 billion in 2021 increased
by $453 million, or 46%, compared to $995 million in 2020. The increase was
primarily due to an increase in go-to-market activities in both the Computing
and Graphics and Enterprise, Embedded and Semi-Custom segments, as well as an
increase in headcount and higher annual employee incentives driven by improved
financial performance.
Licensing Gain
During 2021, we recognized $12 million of royalty income associated with the
licensed IP to the THATIC JV, our two joint ventures with Higon Information
Technology Co., Ltd., a third-party Chinese entity. We did not recognize a
licensing gain for the year ended December 26, 2020.
Interest Expense
Interest expense of $34 million in 2021 decreased by $13 million compared to $47
million in 2020, primarily due to lower debt balances as a result of conversions
by holders of our 2.125% Convertible Senior Notes due 2026.
Other Income (Expense), net
Other income, net was $55 million for the year ended December 25, 2021 compared
to $47 million of Other expense, net for the year ended December 26, 2020. The
change was primarily due to a net gain of $56 million from an increase in fair
value of equity investments in 2021 and lower losses from the conversion of our
convertible debt of $47 million in 2020.
Income Taxes Provision (Benefit)
We recorded an income tax provision of $513 million in 2021 and an income tax
benefit of $1.2 billion in 2020, representing effective tax rates of 14% and
(95)% respectively. The income tax provision of $513 million was due to higher
income in the U.S. and increase in foreign taxes, partially offset by $147
million of foreign-derived intangible income tax benefit, $78 million of
research and development tax credits, and $125 million of excess tax benefit for
stock-based compensation net of non-deductible officers' compensation.
The income tax benefit in 2020 was primarily due to $1.3 billion of tax benefit
from the valuation allowance release in the U.S. This benefit was partially
offset by approximately $10 million of withholding tax expense related to
cross-border transactions, $13 million of state and foreign taxes, and a $75
million increase in valuation allowance against certain state and foreign tax
credits.
Through the end of fiscal year 2021, we continued to maintain a valuation
allowance of approximately $1.7 billion for certain federal, state, and foreign
tax attributes. The federal valuation allowance maintained is due to limitations
under Internal Revenue Code Section 382 or 383, separate return loss year rules,
or dual consolidated loss rules. Certain state and foreign valuation allowance
maintained is due to lack of sufficient sources of future taxable income.
International Sales
International sales as a percentage of net revenue were 72% in 2021 and 77% in
2020. We expect that international sales will continue to be a significant
portion of total sales in the foreseeable future. Substantially all of our sales
transactions are denominated in U.S. dollars.
FINANCIAL CONDITION
Liquidity and Capital Resources
As of December 25, 2021, our cash, cash equivalents and short-term investments
were $3.6 billion compared to $2.3 billion as of December 26, 2020. The
percentage of cash and cash equivalents held domestically was 91% as of
December 25, 2021, and 94% as of December 26, 2020. Subsequent to December 25,
2021, we repurchased $1.0 billion of our common stock under our stock repurchase
program.
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Our operating, investing and financing cash flow activities for 2021 and 2020
were as follows:
                                                                    December 25, 2021           December 26, 2020
                                                                                    (In millions)
Net cash provided by (used in):
Operating activities                                              $            3,521          $            1,071
Investing activities                                                            (686)                       (952)
Financing activities                                                          (1,895)                          6

Net increase in cash and cash equivalents and restricted cash $

      940          $              125


Our aggregate principal debt obligations were $313 million and $338 million as
of December 25, 2021 and December 26, 2020, respectively.
We believe our cash, cash equivalents, short-term investments and cash flows
from operations along with our Revolving Credit Facility will be sufficient to
fund operations, including capital expenditures and purchase commitments, over
the next 12 months and beyond. We believe we will be able to access the capital
markets should we require additional funds. However, we cannot assure that such
funds will be available on favorable terms, or at all.
Operating Activities
Our working capital cash inflows and outflows from operations are primarily cash
collections from our customers, payments for inventory purchases and payments
for employee-related expenditures.
Net cash provided by operating activities was $3.5 billion in 2021, primarily
due to our higher net income of $3.2 billion in 2021, adjusted for non-cash
adjustments of $1.1 billion and net cash outflows of $774 million from changes
in our operating assets and liabilities. The primary drivers of the changes in
operating assets and liabilities included a $640 million increase in accounts
receivable driven primarily by $1.6 billion higher revenue in the fourth quarter
of 2021 compared to the fourth quarter of 2020, a $556 million increase in
inventories driven by our continued increase in product build in support of
customer demand, and a $920 million increase in prepaid expenses and other
assets due primarily to prepayments under long-term supply agreements in 2021,
offset by an $801 million increase in accounts payable primarily due to timing
of payments to our suppliers, and a $526 million increase in accrued liabilities
and other, both of which were driven mainly by higher marketing accruals, and
higher accrued annual employee incentives due to improved financial performance.
Net cash provided by operating activities was $1.1 billion in 2020, primarily
due to our net income of $2.5 billion, adjusted for non-cash adjustments of $488
million and net cash outflows of $931 million from changes in our operating
assets and liabilities. The primary drivers of the changes in operating assets
and liabilities included a $219 million increase in accounts receivable driven
primarily by $1.1 billion higher revenue in the fourth quarter of 2020 compared
to the fourth quarter of 2019, partially offset by higher collections due to
better revenue linearity in the fourth quarter of 2020 compared to the fourth
quarter of 2019, a $417 million increase in inventories driven by an increase in
product build in support of customer demand, a $231 million increase in prepaid
expenses and other assets due primarily to an increase in vendor credits, a $513
million decrease in accounts payable primarily due to timing of payments to our
suppliers, offset by a $574 million increase in accrued liabilities and other
driven by higher marketing accruals and higher accrued annual employee
incentives due to improved financial performance.
Investing Activities
Net cash used in investing activities was $686 million in 2021, which primarily
consisted of higher cash used for purchases of short-term investments of
$2.1 billion and $301 million for purchases of property and equipment, partially
offset by higher cash provided by maturities of short-term investments of
$1.7 billion.
Net cash used in investing activities was $952 million in 2020, which primarily
consisted of $850 million for purchases of short-term investments and $294
million for purchases of property and equipment, partially offset by $192
million for maturities of short-term investments.
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Financing Activities
Net cash used in financing activities was $1.9 billion in 2021, which primarily
consisted of common stock repurchases of $1.8 billion under the $4 billion stock
repurchase program and higher repurchases to cover tax withholding on employee
equity plans of $237 million, partially offset by higher proceeds from the
issuance of common stock under our employee equity plans of $104 million.
Net cash provided by financing activities was $6 million in 2020, which
primarily consisted of proceeds from the issuance of common stock under our
employee equity plans of $85 million, partially offset by $78 million of common
stock repurchased to cover employee withholding taxes on vesting of employee
equity grants. We borrowed $200 million of short-term debt during the second
quarter of 2020 and paid off the balance during the third quarter of 2020.
Contractual Obligations
For a description of our contractual obligations such as debt, leases, purchase
and other contractual obligations, see Part II, Item 8 Notes to Consolidated
Financial Statements Note 6 - Debt and Revolving Credit Facility and Note 16 -
Commitments and Guarantees.
Off-Balance Sheet Arrangements
As of December 25, 2021, we had no off-balance sheet arrangements.
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