AMD 2013 Annual Report Download - page 69

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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 2025. We lease certain
manufacturing and office equipment for terms ranging from 1 to 5 years. Total future non-cancelable lease
obligations as of December 28, 2013 were $388 million, including approximately $322 million of future lease
payments and estimated operating costs related to real estate in Austin, Texas, Sunnyvale, California and
Singapore that we sold and leased back.
Purchase Obligations
Our purchase obligations primarily include our obligations to purchase wafers and substrates from third
parties, excluding our wafer purchase commitments to GF under the WSA. As of December 28, 2013, total non-
cancelable purchase obligations were $456 million.
Obligations to GF
Obligations to GF represent all of our contractual obligations to GF, including approximately $250 million
for inventory purchases during the first quarter of 2014 and other payables under the WSA as described below.
Pursuant to the third amendment to the WSA, GF agreed to waive a portion of our wafer purchase
commitments for the fourth quarter of 2012. In consideration for this waiver, we agreed to pay GF a fee of $320
million. The cash impact of this $320 million fee was paid over several quarters, with $80 million paid on
December 28, 2012, $40 million paid on April 1, 2013 and $200 million paid on December 31, 2013.
We are currently in the process of negotiating a fourth amendment to the WSA, and we expect that our
future purchases from GF will continue to be material.
Off-Balance Sheet Arrangements
As of December 28, 2013, we had no off-balance sheet arrangements.
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