AMD 2011 Annual Report Download - page 119

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recoveries in determining the estimated costs of the cleanup. The progress of future remediation efforts cannot be
predicted with certainty and these costs may change. The Company believes that any amount in addition to what
has already been accrued would not be material.
Other Legal Matters
The Company is a defendant or plaintiff in various actions that arose in the normal course of business. In the
opinion of the Company’s management, the aggregate liability, if any, with respect to these matters will not have
a material adverse effect on the Company’s financial condition or results of operations.
NOTE 18: Restructuring
2011 Restructuring
In the fourth quarter of 2011, the Company initiated a restructuring plan to strengthen its competitive
positioning, implement a more competitive cost structure and conduct a workforce rebalancing to better address
faster growing market segments. The plan primarily involved a reduction of its global workforce by
approximately 10% and contract and program terminations. The plan also involved additional cost reduction
actions that will take place in 2012. The Company expects that the 2011 restructuring plan will be substantially
completed during 2012. The Company recorded a $100 million restructuring charge in the fourth quarter of 2011,
which consisted of $54 million for severance and costs related to the continuation of certain employee benefits,
$45 million for contract or program termination costs and $1 million for asset impairments. Of the $100 million
restructuring charge recorded in the fourth quarter of 2011, the Company expects approximately $52 million in
cash expenditures in 2012, and approximately $15 million in cash expenditures in 2013. In the fourth quarter of
2011, the Company also reversed approximately $2 million of costs associated with the 2008 restructuring plan
because the actual restoration costs for vacated facilities were lower than previously estimated.
The following table provides a summary of the fourth quarter of 2011 restructuring activities and the related
liabilities recorded in “Other current liabilities” and “Other long-term liabilities” on the Company’s consolidated
balance sheet remaining as of December 31, 2011:
Severance
and related
benefits
Other exit
Related
Costs Total
(In millions)
Balance December 25, 2010 ........................ $— $— $—
Charges .................................... 54 46 100
Cash payments ............................... (32) — (32)
Non-cash charges ............................. — (1) (1)
Balance December 31, 2011 ........................ $ 22 $ 45 $ 67
2008 Restructuring
In the fourth quarter of 2008, the Company initiated a restructuring plan to reduce its cost structure, which
was substantially completed in 2009. This plan primarily involved the termination of employees. The
restructuring charges recorded in conjunction with this plan primarily represented severance and costs related to
the continuation of certain employee benefits, contract or program termination costs, asset impairments and exit
costs for facility consolidations and closures.
113