AMD 2003 Annual Report Download - page 21

Table of Contents
ITEM 2. PROPERTIES
Our principal engineering, manufacturing, warehouse and administrative facilities comprise approximately 3.3 million square feet and are located in the
United States, Germany, Singapore, and Malaysia. Approximately 2.2 million square feet of this space is in buildings we own. We acquired approximately 115
acres of land in Dresden, Germany for Fab 30. Fab 30 is encumbered by a lien securing AMD Saxony’s obligations under the Dresden Loan Agreements. For
more detail regarding the Dresden Loan Agreements, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Dresden
Term Loan and Dresden Term Loan Guarantee,” below.
We have an operating lease on property containing two buildings with an aggregate of approximately 364,000 square feet, located on 45.6 acres of land in
Sunnyvale, California (One AMD Place). This operating lease ends in December 2018. In 2000, we entered into a lease agreement for three buildings, totaling
175,000 square feet, located adjacent to One AMD Place, which we call AMD Square, to be used as engineering offices and lab facilities. During 2002, we
determined that we no longer required AMD Square. As of December 28, 2003, AMD Square is vacant, and we are actively marketing it for sublease. During
2003, we also vacated approximately 75,000 square feet of leased administrative office space in Austin, Texas. We continue to have lease obligations with
respect to these facilities ranging from 18 to 24 months, and we are marketing these facilities for sublease.
In addition to principal engineering, manufacturing, warehouse and administrative facilities, we lease sales office facilities in 20 locations globally,
totalling approximately 150,000 square feet. These facilities are generally located in commercial centers near our customers, principally in Latin America,
Europe and the Asia Pacific region.
FASL LLC’s principal engineering, manufacturing, warehouse and administrative facilities comprise approximately four million square feet and are
located in the United States, Japan, Malaysia, Thailand and China. Over 3.9 million square feet of this space is in buildings FASL LLC owns. The remainder of
this space is leased, primarily from us. FASL LLC leases approximately 15 acres of land in Suzhou, China for its assembly and test facility. In addition, FASL
LLC also leases approximately 90 acres of land in Japan for its wafer fabrication facilities. Its Fab 25 facility in Austin, Texas is encumbered by a lien securing
the July 2003 FASL Term Loan. For more detail regarding the July 2003 FASL Term Loan, see, “Management’s Discussion and Analysis of Financial Condition
and Results of Operations—July 2003 FASL Term Loan and Guarantee,” below.
Our and FASL LLC’s leases cover facilities with expiration terms of generally one to 20 years. We currently do not anticipate difficulty in either retaining
occupancy of any of our facilities through lease renewals prior to expiration or through month-to-month occupancy, or replacing them with equivalent facilities.
ITEM 3. LEGAL PROCEEDINGS
Environmental Matters
We are named as a responsible party on Superfund clean-up orders for three sites in Sunnyvale, California that are on the National Priorities List. Since
1981, we have discovered hazardous material releases to the groundwater from former underground tanks and proceeded to investigate and conduct remediation
at these three sites. The chemicals released into the groundwater were commonly used in the semiconductor industry in the United States in the wafer fabrication
process prior to 1979.
In 1991, we received four Final Site Clean-up Requirements Orders from the California Regional Water Quality Control Board relating to the three sites.
We have entered into settlement agreements with other responsible parties on two of the orders. Under these agreements other parties have assumed the costs and
primary responsibility for conducting remediation activities under the orders. We remain responsible for these costs in the event that the other parties do not
fulfill their obligations under the settlement agreements.
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Source: ADVANCED MICRO DEVIC, 10-K, March 09, 2004