Posted on Friday, January 16 2009 @ 21:07 CET by Thomas De Maesschalck
The latest impairment charge follows a writedown of $880 million on the value of ATI's handheld and digital TV units in July 2008 and a $1.6 billion writedown of ATI's goodwill in Q4 2007. Since AMD acquired ATI for $5.6 billion in 2006, it has taken charges of more than $3.16 billion.
On December 29, 2008, Advanced Micro Devices, Inc. (the “Company”) filed a Current Report on Form 8-K (the “Original Form 8-K”) stating that the current carrying value of its goodwill, which the Company had recorded as a result of its October 2006 acquisition of ATI Technologies Inc. (the “ATI Acquisition”), was impaired. In addition, the Company stated in the Original Form 8-K that it would perform an analysis to identify whether there was also potential impairment of any of the remaining identifiable intangible assets acquired in the ATI Acquisition. At the time of filing of the Original Form 8-K, the Company was unable to provide a reasonable estimate of the amount or range of amounts of either impairment charge. The Company is filing this Form 8-K/A to amend the Original Form 8-K to update the disclosure therein under Item 2.06.
On January 13, 2009, the Company determined that the goodwill impairment charge related to the ATI Acquisition would be approximately $622 million. In addition, the Company concluded that approximately $62 million of the current carrying values of certain acquired identifiable intangible assets was impaired. The Company will not be required to make any current or future cash expenditures as a result of these impairments. These impairment charges will be reflected in the Company’s financial statements as of and for the fiscal quarter and year ended December 27, 2008.
