AMD 2011 Annual Report Download - page 60

less withholding taxes) in December 2010. The remaining amount of $117 million (which represents $140
million less withholding taxes) was paid in two equal installments in May 2011 and in November 2011. In
addition, pursuant to the settlement agreement, Samsung granted us, and we granted to Samsung, non-exclusive,
royalty-free licenses to all patents and patent applications for ten years after the effective date of the Agreement
to make, have made, use, sell, offer to sell, import and otherwise dispose of certain semiconductor- and
electronic-related products anywhere in the world.
This settlement encompassed all patent litigation and disputes between the parties. At the time we entered
into the Agreement, we did not have any future obligations that we were required to perform in order to earn this
settlement payment. Accordingly, we recognized the entire settlement amount in our operating results for the
fourth quarter of 2010.
Intel Settlement
In the fourth quarter of 2009, we entered into an agreement with Intel to end all outstanding legal disputes
between us and Intel, including antitrust litigation and patent cross license disputes. Under the terms of the
agreement:
• AMD and Intel agreed to a new 5-year patent cross license agreement that gives AMD broad rights and
the freedom to operate a business utilizing multiple foundries;
• Intel and AMD waived all claims of breach from the previous license agreement;
• Intel paid us $1.25 billion;
• Intel agreed to abide by a set of business practice provisions going forward;
• we dropped all pending litigation, including a case in U.S. District Court in Delaware and two cases
pending in Japan; and
• we withdrew all of our regulatory complaints worldwide.
This settlement encompasses all past antitrust litigation and disputes between us and Intel. At the time we
entered into the agreement, we did not have any future obligations that we were required to perform to earn this
settlement payment. That is, the patent cross license agreement represented fully paid up licenses by both AMD
and Intel for which no future payments or delivery was required. Accordingly, we recognized the entire
settlement amount in our 2009 operating results.
Amortization of Acquired Intangible Assets
Amortization of acquired intangible assets was $29 million in 2011, $61 million in 2010 and $70 million in 2009.
The decrease from 2009 to 2010 and from 2010 to 2011 was due to the reduced amortization base amount of the
acquired intangible assets.
Effects of Restructuring Plans
In the fourth quarter of 2011, we initiated a restructuring plan to strengthen our 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 our global workforce by approximately
10% and contract and program terminations. The plan also involved additional cost reduction actions that will
take place in 2012. We expect that the 2011 restructuring plan will be substantially completed during 2012. We
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
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