AMD 2009 Annual Report Download - page 78

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covering other borrowings. The occurrence of a default under any of these borrowing arrangements would permit
the applicable note holders to declare all amounts outstanding under those borrowing arrangements to be
immediately due and payable.
Fab 36 Term Loan and Guarantee
On April 21, 2004, our former German subsidiary, AMD Fab 36 KG, the legal entity that owned our
300-millimeter wafer fabrication facility, Fab 36, entered into a 700 million euro Term Loan Facility Agreement
among AMD Fab 36 KG, as borrower, and a consortium of banks led by Dresdner Bank AG, as lenders, and
other related agreements (collectively, the Fab 36 Loan Agreements) to finance the purchase of equipment and
tools required to operate Fab 36. We guaranteed the obligations of AMD Fab 36 KG to the lenders under the Fab
36 Loan Agreements. As of December 26, 2009, the total amount outstanding under the Fab 36 Term Loan was
$460 million. The interest rate on the loan as of December 26, 2009 was 2.23406 percent. This loan is repayable
in quarterly installments, which commenced in September 2007 and terminates in March 2011. The Fab 36 Term
Loan will no longer be part of our consolidated balance sheet upon the deconsolidation of GF in the first quarter
of 2010.
In connection with the formation of the GF joint venture on March 2, 2009, the terms of the Fab 36 Loan
Agreements were amended to allow for the transfer of Fab 36, AMD Fab 36 KG and its affiliated limited partners
and general partner, AMD Fab 36 Holding GmbH, AMD Fab 36 Admin GmbH and AMD Fab 36 LLC, as well
as the Fab 36 Loan Agreements, to GF. In addition, we also amended the terms of the related guarantee
agreement such that we and GF are joint guarantors of AMD Fab 36 KG’s obligations to the lenders under the
Fab 36 Loan Agreements. However, if we are called upon to make any payments under the Guarantee
Agreement, GF has separately agreed to indemnify us for the full amount of such payments. We must continue to
comply with the covenants set forth in the Guarantee Agreement, such as the adjusted tangible net worth and the
earnings before interest, taxes depreciation and amortization (EBITDA) financial covenants. As of December 26,
2009 we were in compliance with the Guarantee Agreement.
AMD China Revolving Credit Line
In November 2009, AMD Products (China) Co. Ltd. (AMD Products) entered into a one year revolving
credit agreement in the amount of RMB200 million ($30 million based on a foreign exchange rate as of
December 26, 2009) with China Merchant Bank to finance the working capital needs of AMD Products. The
interest rate is based on the 6 month loan rates published by The People’s Bank of China. Principal and accrued
interest must be repaid every 3 months. Advanced Micro Devices (China) Co., Ltd., the parent company of AMD
Products, provided an irrevocable guarantee to China Merchant Bank with respect to the amounts outstanding
under the revolving credit agreement. As of December 26, 2009, the outstanding balance was RMB100 million
($15 million), and the interest rate was 4.45 percent.
Other Long-Term Liabilities
Other long-term liabilities in the contractual obligations table above includes $66 million of payments due
under certain software and technology licenses that will be paid through 2014, of which $39 million is GF’s
obligation and $24 million related to employee benefit obligations, of which $3 million is GF’s obligation.
Other long-term liabilities excludes amounts recorded on our consolidated balance sheet that do not require
us to make cash payments, which as of December 26, 2009, primarily consisted of $317 million of deferred
grants and subsidies related to GF’s Dresden wafer manufacturing facilities and $70 million of deferred gains
resulting from equipment sales and the sale and leaseback of our headquarters in Sunnyvale, California in 1998,
and our facility in Markham, Canada in 2008.
Other long-term liabilities also exclude $118 million of non-current unrecognized tax benefits, which are
included in the caption, “Other long-term liabilities” on our consolidated balance sheet at December 26, 2009.
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