AMD 2009 Annual Report Download - page 38

payment is due according to contractual maturities (currently, ranging from 17 to 42 years for our ARS).
Although we have had some limited redemptions since the failed auctions began, the liquidity of these
investments has been impacted.
While we believe that the current illiquidity of these investments is temporary, we cannot predict with
certainty when liquidity in the ARS market will return. If this market illiquidity continues or worsens, we may be
required to record additional impairment charges with respect to these investments in the future, which could
adversely impact our results of operations.
As of December 26, 2009, we owned $69 million par value of ARS that we purchased from UBS prior to
February 13, 2008. From June 30, 2010 through July 2, 2012, we have the right, but not the obligation, to sell, at
par, these ARS to UBS. During the course of our exercise period with respect to the UBS ARS, UBS may not
have financial resources to satisfy its financial obligations. In the event UBS cannot satisfy its financial
obligations, we would no longer have the certainty as to the liquidity of these ARS.
Our operations in foreign countries are subject to political and economic risks and our worldwide
operations are subject to natural disasters, which could have a material adverse effect on us.
We maintain operations around the world, including in the United States, Canada, Europe and Asia. We rely
on GF for substantially all of our wafer fabrication capacity for microprocessors. Currently, GF manufactures our
products in facilities that are located in Germany. Nearly all product assembly and final testing of our
microprocessor products is performed at manufacturing facilities in China, Malaysia and Singapore. In addition,
our graphics and chipset products are manufactured, assembled and tested by independent third parties in the
Asia-Pacific region and inventory related to those products is stored there, particularly in Taiwan. We also have
international sales operations and as part of our business strategy, we are continuing to seek expansion of product
sales in high growth markets. International sales as a percent of net revenue were 87 percent for 2009. We expect
that international sales will continue to be a significant portion of total sales in the foreseeable future.
The political and economic risks associated with our operations in foreign countries include, without
limitation:
• expropriation;
• changes in a specific country’s or region’s political or economic conditions;
• changes in tax laws, trade protection measures and import or export licensing requirements;
• difficulties in protecting our intellectual property;
• difficulties in achieving headcount reductions;
• changes in foreign currency exchange rates;
• restrictions on transfers of funds and other assets of our subsidiaries between jurisdictions;
• changes in freight and interest rates;
• disruption in air transportation between the United States and our overseas facilities;
• loss or modification of exemptions for taxes and tariffs; and
• compliance with U.S. laws and regulations related to international operations, including export control
regulations and the Foreign Corrupt Practices Act.
In addition, our worldwide operations could be subject to natural disasters such as earthquakes that disrupt
manufacturing or other operations. For example, our Silicon Valley operations are located near major earthquake
fault lines in California. Any conflict or uncertainty in the countries in which we operate, including public health
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