AMD 2013 Annual Report Download - page 112

Environmental Matters
The Company is named as a responsible party on Superfund clean-up orders for three sites in Sunnyvale,
California that are on the National Priorities List. Since 1981, the Company has discovered hazardous material
releases to the groundwater from former underground tanks and proceeded to investigate and conduct
remediation at these three sites. The chemicals released into the groundwater were commonly used in the
semiconductor industry in the United States in the wafer fabrication process prior to 1979.
In 1991, the Company received Final Site Clean-up Requirements Orders from the California Regional
Water Quality Control Board relating to the three sites. The Company has entered into settlement agreements
with other responsible parties on two of the orders. During the term of such agreements other parties have agreed
to assume most of the foreseeable costs as well as the primary role in conducting remediation activities under the
orders. The Company remains responsible for additional costs beyond the scope of the agreements as well as all
remaining costs in the event that the other parties do not fulfill their obligations under the settlement agreements.
To address anticipated future remediation costs under the orders, the Company has computed and recorded
an estimated environmental liability of approximately $5.4 million and has not recorded any potential insurance
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. With
respect to these matters, based on the management’s current knowledge, the Company believes that the amount
or range of reasonably possible loss, if any, will not, either individually or in the aggregate, have a material
adverse effect on the Company’s financial position, results of operations, or cash flows.
NOTE 18: Restructuring
2012 Restructuring Plan
In the fourth quarter of 2012, the Company implemented a restructuring plan designed to improve the
Company’s cost structure and to strengthen its competitiveness in core growth areas. The plan primarily involves
a workforce reduction of approximately 14% as well as asset impairments and facility consolidations. The
Company recorded restructuring expense in the fourth quarter of 2012 of approximately $90 million, which was
primarily comprised of employee severance. Substantially all of the restructuring expense is related to severance.
The non-cash portion of the restructuring expense included approximately $4 million of asset impairments. In
2013, the Company incurred costs of $11 million related to facility consolidation and site closures, which were
partially offset by the release of estimated employee related severance costs of $5 million. The 2012 restructuring
plan was completed as of the end of the third quarter of 2013.
2011 Restructuring Plan
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 included a reduction of the Company’s global workforce by
approximately 13% and contract and program terminations. 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. In 2012, the Company recorded an additional $8 million for severance and costs related to
the continuation of certain employee benefits. The plan was completed as of the end of the first quarter of 2012.
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