AMD 2011 Annual Report Download - page 124

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(1) On December 22, 2010, the Company entered into settlement agreement with Samsung. Pursuant to the
settlement agreement, Samsung agreed to pay the Company $283 million, net of withholding taxes. The
Company recorded this amount as a gain in 2010.
(2) During the fourth fiscal quarter of 2011, the Company implemented a restructuring plan and incurred a net
restructuring charge of $98 million primarily related to severance and costs related to the continuation of
certain employee benefits, contract or program termination costs and asset impairments.
(3) During the fourth quarter of 2011, the Company recorded a non-cash impairment charge of approximately
$209 million related to its investment in GF.
(4) The tax provision in the fourth quarter of 2010 is primarily due to withholding taxes that the Company paid
in connection with the settlement agreement with Samsung.
(5) As of beginning of 2010, the Company deconsolidated GF and began to account for its ownership interest in
GF under the equity method of accounting. The Company recorded a non-cash gain of $325 million on
deconsolidation of GF and a loss of $462 million for the Company’s share of GF’s operating results in 2010.
As of beginning of 2011, the Company changed the method of accounting for its investment GF from the
equity method to the cost method of accounting. As a result of the change, the Company recognized a
non-cash gain of approximately $492 million in the first quarter of 2011, net of certain transaction related
charges.
(6) In the fourth fiscal quarter of 2008, the Company sold its Digital Television business unit to Broadcom
Corporation. The Company had classified its Digital Television unit as discontinued operations at the time it
decided to divest the business unit. Pursuant to the asset sale agreement, Broadcom had three years after the
closing date to obtain reimbursement from the Company for a portion of any severance costs that Broadcom
incurred during this time period to the extent the severance costs related to any of the Company’s former
employees. The loss from discontinued operations represents payments to Broadcom in the fourth fiscal
quarter of 2011.
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