On December 27, AMD announced that starting with the first fiscal quarter of 2011, the company will begin accounting for its investment in GLOBALFOUNDRIES under the cost method of accounting and will no longer recognize any share of GLOBALFOUNDRIES' net income or loss and its statements of operation. The transition to cost-based accounting was triggered by the contribution of Chartered Semiconductor to GLOBALFOUNDRIES and amendments to certain agreements.As a result of the contribution, AMD's ownership of the newly combined entity on a fully diluted basis is approximately 14%. Reconciliation for all non-GAAP financial measures discussed on today's call is included in our financial tables that accompany our earnings release available in the Investor Relations section of amd.com. Before we begin today's call, I'd like to caution everyone that we will be making forward-looking statements about management's expectations. Investors are cautioned that those statements are based on current beliefs, assumptions and expectations, speak only as of the current date and involve risks and uncertainties that could cause actual results to differ materially from our current expectations. The semiconductor industry is generally volatile and market conditions are particularly difficult to forecast especially in light of the current state of the economy. We encourage you to review our filings with the SEC, where we discuss the risk factors that could cause actual results to differ materially from our expectations. You'll find detailed discussions about such risk factors in our most recent SEC filings, AMD's quarterly report on Form 10-Q for the quarter ended September 25, 2010. Now with that, I'd like to hand the call over to Thomas. Thomas Seifert Thank you, Ruth. Before we begin, I would like to take a moment to thank Dirk Meyer for his leadership as AMD's CEO over the past two and a half years. Indeed, he leaves behind a much stronger company than the one he inherited heard, a much nimbler AMD with the people, the IP and the spirit to fully realize the breadth of opportunities in front of us.
As you know, AMD announced last week that our Board has formed a CEO search committee led by Bruce Claflin, Executive Chairman of AMD's Board of Directors. The Board has retained an executive search firm to assist with this process. The search is obviously a priority and the committee is moving the process forward to ensure that we select a person with the right vision, experience and track record to lead AMD into the future and to create increased shareholder value over time.While we don't plan on communicating further until the search process has concluded, we will update you should events warrant. That being said, we are here to focus on our fourth quarter and full year earnings results. 2010 was an important year for AMD. It was a year in which we achieved many of our major milestones, resulting in a company with solid momentum and well positioned for the opportunities immediately ahead. First, we demonstrated that our fabulous business model works, restructuring our balance sheet and reducing our overall debt by $400 million excluding GLOBALFOUNDRIES, improving our 2010 non-GAAP gross margin by nine percentage points over the prior year, and generating $553 million in non-GAAP operating income and $355 million in adjusted free cash flow in 2010. Read the rest of this transcript for free on seekingalpha.com