AMD 2011 Annual Report Download - page 61

Download and view the complete annual report

Please find page 61 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

fourth quarter of 2011, we expect approximately $52 million in cash expenditures in 2012 and approximately $15
million in cash expenditures in 2013. In the fourth quarter of 2011, we also reversed approximately $2 million of
costs associated with our 2008 restructuring plan because the actual restoration costs for vacated facilities were
lower than previously estimated.
In addition, we currently estimate that we will record restructuring expense in 2012 of approximately $5
million. Of this amount, approximately $4 million is related to severance and costs of continuation of certain
employee benefits and approximately $1 million is related to facility site closures, substantially all of which we
expect to pay in 2012.
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 our 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
In the fourth quarter of 2008, we initiated a restructuring plan to reduce our 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.
The following table provides a summary of each major type of cost associated with the 2011 and 2008
restructuring plans for the periods presented:
2011 2010 2009
(In millions)
Severance and benefits ........................................................ $54 $ (4) $25
Contract or program terminations ............................................... 45 — 12
Asset impairments ........................................................... 1 — 8
Facility consolidations and closures .............................................. (2) — 20
Total ...................................................................... $98 $ (4) $65
Interest Income
Interest income of $10 million in 2011 was relatively flat as compared to $11 million in 2010. The
weighted-average interest rate decreased in 2011 compared to 2010. However, the impact of this was offset by an
increase in average cash balance during 2011.
Interest income of $11 million in 2010 decreased by $5 million from $16 million in 2009, primarily due to
the absence of $4 million of GF interest income. GF interest income is not reflected in our results of operations in
2010 as a result of the deconsolidation of GF.
55