AMD 2011 Annual Report Download - page 70

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From August 1, 2015, we may redeem the 7.75% Notes for cash at the following specified prices plus
accrued and unpaid interest:
Period
Price as
Percentage of
Principal Amount
Beginning on August 1, 2015 through July 31, 2016 ................. 103.875%
Beginning on August 1, 2016 through July 31, 2017 ................. 102.583%
Beginning on August 1, 2017 through July 31, 2018 ................. 101.292%
and on August 1, 2018 and thereafter ............................. 100.000%
As of December 31, 2011, the outstanding aggregate principal amount of our 7.75% Notes was $500 million.
We may elect to purchase or otherwise retire the 7.75% Notes with cash, stock or other assets from time to
time in open market or private negotiated transactions, either directly or through intermediaries, or by tender
offer, when we believe the market conditions are favorable to do so.
See Note 10 of “Notes to Consolidated Financial Statements,” below, for additional information regarding
the 7.75% Notes.
The agreements governing its 5.75% Notes, 6.00% Notes, 8.125% Notes and 7.75% Notes contain cross-
default provisions whereby a default under one agreement would likely result in cross defaults under agreements
covering other borrowings. The occurrence of a default under any of these borrowing arrangements would permit
the applicable note holders to declare all amounts outstanding under those borrowing arrangements to be
immediately due and payable.
Other Long-Term Liabilities
Other long-term liabilities in the contractual obligations table above include $5 million related to employee
benefit obligations and $16 million of payments due under certain software and technology licenses that will be
paid through 2014.
Other long-term liabilities excludes amounts recorded on our consolidated balance sheet that do not require
us to make cash payments, which, as of December 31, 2011, primarily consisted of $17 million of deferred gains
resulting from the sale and leaseback of certain of our facilities. Also excluded from other long-term liabilities
was $4 million of non-current unrecognized tax benefits, which are included in the caption “Other long-term
liabilities” on our consolidated balance sheet at December 31, 2011. This amount represents a potential cash
payment that could be payable by us upon settlement with a taxing authority. We have not included this amount
in the contractual obligations table above because we cannot make a reasonably reliable estimate regarding the
timing of any settlement with the taxing authority, if any.
Capital Lease Obligations
As of December 31, 2011, we had aggregate outstanding capital lease obligations of $26 million for one of
our facilities in Canada, which is payable in monthly installments through 2017.
Operating Leases
We lease certain of our facilities and in some jurisdictions, we lease the land on which these facilities are
built, under non-cancelable lease agreements that expire at various dates through 2022. We lease certain
manufacturing and office equipment for terms ranging from 1 to 5 years. Total future non-cancelable lease
obligations as of December 31, 2011 were $175 million.
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