Close

AMD (AMD) Sees Q2 One-Time, Non-Cash Gain of $325M Related to Deconsolidation

April 8, 2010 5:07 PM EDT
In a Form 8-K, AMD (NYSE: AMD) disclosed that effective December 27, 2009, the Company deconsolidated the accounts of GLOBALFOUNDRIES Inc. and began to account for its investment in GF under the equity method of accounting.

Under the accounting guidelines pertaining to deconsolidation, the Company’s opening investment in GF is required to be recorded at fair value as of the date of deconsolidation. The difference between this initial fair value of the investment in GF and the net carrying book value is recognized as a gain or loss in earnings.

On April 7, 2010, the Company completed a valuation analysis to determine the initial fair value of its investment in GF. Based on this analysis, in the fiscal quarter ended March 27, 2010, the Company will recognize a non-cash, one-time gain related to the deconsolidation of approximately $325 million in the Other income (expense), net line on its Consolidated Statement of Operations.

You May Also Be Interested In





Related Categories

Corporate News, Guidance