AMD 2011 Annual Report Download - page 104

Download and view the complete annual report

Please find page 104 of the 2011 AMD annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 140

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140

NOTE 10: Debt and Other Obligations
Long-term Debt and Capital Lease Obligations
The Company’s long-term debt and capital lease obligations as of December 31, 2011 and December 25,
2010 consisted of:
December 31,
2011
December 25,
2010
(In millions)
5.75% Convertible Senior Notes due 2012 ........................ $ 485 $ 485
6.00% Convertible Senior Notes due 2015, net of discount ........... 546 723
8.125% Senior Notes due 2017, net of discount .................... 459 454
7.75% Senior Notes Due 2020 .................................. 500 500
Capital lease obligations ...................................... 26 30
2,016 2,192
Less: current portion ......................................... 489 4
Long-term debt and capital lease obligations, less current portion ...... $1,527 $2,188
5.75% Convertible Senior Notes due 2012
On August 14, 2007, the Company issued $1.5 billion aggregate principal amount of the 5.75% Convertible
Senior Notes due 2012 (the 5.75% Notes). The 5.75% Notes are general unsecured senior obligations. Interest is
payable in arrears on February 15 and August 15 of each year beginning February 15, 2008 until the maturity
date of August 15, 2012. The terms of the 5.75% Notes are governed by an Indenture (the 5.75% Indenture),
dated as of August 14, 2007, by and between the Company and Wells Fargo Bank, National Association, as
Trustee. In 2009, the Company repurchased $1,015 million in aggregate principal amount of the Company’s
outstanding 5.75% Notes for $1,002 million in cash.
As of December 25, 2011, the remaining outstanding aggregate principal amount of the Company’s 5.75%
Notes was $485 million. The Company reclassified this amount to current liabilities because the 5.75% Notes
mature in the next 12 months.
The 5.75% Notes are convertible, in whole or in part, at any time prior to the close of business on the
business day immediately preceding the maturity date of the 5.75% Notes, into shares of the Company’s common
stock based on an initial conversion rate of 49.6771 shares of common stock per $1,000 principal amount of the
5.75% Notes, which is equivalent to an initial conversion price of approximately $20.13 per share. This initial
conversion price represents a premium of 50% relative to the last reported sale price of the Company’s common
stock on August 8, 2007 (the trading date preceding the date of pricing of the 5.75% Notes) of $13.42 per share.
This initial conversion rate will be adjusted for certain anti-dilution events. In addition, the conversion rate will
be increased in the case of corporate events that constitute a fundamental change (as defined in the 5.75%
Indenture) of AMD under certain circumstances. Holders of the 5.75% Notes may require the Company to
repurchase the 5.75% Notes for cash equal to 100% of the principal amount to be repurchased plus accrued and
unpaid interest upon the occurrence of a fundamental change (as defined in the 5.75% Indenture) or a termination
of trading (as defined in the 5.75% Indenture). Additionally, an event of default (as defined in the 5.75%
Indenture) may result in the acceleration of the maturity of the 5.75% Notes.
The 5.75% Notes rank equally with the Company’s existing and future senior debt and are senior to all of
the Company’s future subordinated debt. The 5.75% Notes rank junior to all of the Company’s future senior
secured debt to the extent of the collateral securing such debt and are structurally subordinated to all existing and
future debt and liabilities of the Company’s subsidiaries.
98