AMD 2013 Annual Report Download - page 68

other than certain ordinary-course transfers, make certain changes to either Borrower’s name or form or state of
organization without notifying the Agent, or liquidate, dissolve, merge, combine or consolidate. Further
restrictions apply during a domestic cash trigger period (a Domestic Cash Trigger Period), which occurs (i) upon
an event of default or (ii) when the amount of domestic cash or cash equivalents held in certain accounts is at any
time less than $500 million, and ends when both (a) no event of default has existed for 45 days and (b) the
amount of domestic cash or cash equivalents held in such accounts has been equal to or greater than $500 million
for 45 days. Such restrictions limit the Borrowers’ ability to, among other things, allow certain subsidiaries that
manufacture or process inventory for the Borrowers to borrow secured debt or unsecured debt beyond a certain
amount, create any liens upon any of the Borrowers’ property (other than customary permitted liens and liens on
up to $1.5 billion of secured credit facilities debt (which amount includes our Secured Revolving Line of
Credit)), declare or make any distributions, create any encumbrance on the ability of a subsidiary to make any
upstream payments, make asset dispositions other than certain ordinary course dispositions, make certain loans,
make payments with respect to subordinated debt or certain borrowed money prior to its due date, become a party
to certain agreements restricting the Borrowers’ ability to incur or repay debt, grant liens, make distributions, or
modify loan agreements or enter into any non-arm’s-length transaction with an affiliate.
During a Domestic Cash Trigger Period, the Borrowers are required to maintain a fixed charge coverage
ratio each four-fiscal quarter period ending on and after March 29, 2014.
At December 28, 2013, the outstanding loan balance under our Secured Revolving Line of Credit was $55
million, with an interest rate of 2.75%, and up to $445 million remained available for future borrowings. As of
December 28, 2013, we were in compliance with all required covenants stated in the Loan Agreement.
The agreements governing our 6.00% Notes, 8.125% Notes, 7.75% Notes and 7.50% and our Secured
Revolving Line of Credit 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 or the lenders under the Secured
Revolving Line of Credit 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 primarily consists of $131 million of
payments due under certain software and technology licenses that will be paid through 2017 and $4 million of
payments related to employee compensation and benefit obligations that will be paid through 2019 and beyond.
Other long-term liabilities in the contractual obligations table above exclude amounts recorded on our
consolidated balance sheet that do not require us to make cash payments, which, as of December 28, 2013,
primarily consisted of $23 million of deferred gains resulting from certain real estate transactions that occurred in
Sunnyvale, California in 1998, in Markham, Ontario, Canada, in 2008 and in Singapore in 2013. Also excluded
from other long-term liabilities in the contractual obligations table above is $8 million deferred rent related to our
facilities in Sunnyvale, California, $5 million restructuring accruals related to our 2012 restructuring plan, and $3
million of non-current unrecognized tax benefits, which is included in the caption “Other long-term liabilities” on
our consolidated balance sheet as of December 28, 2013. 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 a settlement with the taxing authority, if any.
Capital Lease Obligations
As of December 28, 2013, we had aggregate outstanding capital lease obligations of $16 million for one of
our facilities in Canada, which is payable in monthly installments through 2017.
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