AMD 2014 Annual Report Download - page 40

Higher health care costs and labor costs could adversely affect our business.
With the passage in 2010 of the U.S. Patient Protection and Affordable Care Act (the ACA), we are required
to provide affordable coverage, as defined in the ACA, to all employees, or otherwise be subject to a payment per
employee based on the affordability criteria in the ACA. Many of these requirements will be phased in over a
period of time, with the majority of the most impactful provisions affecting us presently anticipated to begin in
the second quarter of fiscal 2015. Additionally, some states and localities have passed state and local laws
mandating the provision of certain levels of health benefits by some employers. Increased health care and
insurance costs could have a material adverse effect on our business. In addition, changes in federal or state
workplace regulations could adversely affect our ability to meet our financial targets.
Our business is subject to potential tax liabilities.
We are subject to income taxes in the United States, Canada and other foreign jurisdictions. Significant
judgment is required in determining our worldwide provision for income taxes. In the ordinary course of our
business, there are many transactions and calculations where the ultimate tax determination is uncertain.
Although we believe our tax estimates are reasonable, we cannot assure you that the final determination of any
tax audits and litigation will not be materially different from that which is reflected in historical income tax
provisions and accruals. Should additional taxes be assessed as a result of an audit or litigation, there could be a
material adverse effect on our cash, income tax provision and net income in the period or periods for which that
determination is made.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
At December 27, 2014, we owned principal research and development, engineering, manufacturing,
warehouse and administrative facilities located in the Canada, China and Malaysia. These facilities totaled
approximately 934,000 square feet.
We lease our main facility with respect to our graphics and chipset products, which is located in Markham,
Ontario, Canada. This facility consists of approximately 240,000 square feet of office and research and
development space. We own and operate one additional facility in Markham, Ontario which consists of
approximately 123,000 square feet, including office space and approximately 30,000 square-feet of warehouse
space. We also currently own and operate two microprocessor assembly and test facilities comprising an
aggregate of approximately 811,000 square feet, including office space and approximately 250,000 square feet of
assembly, test, mark and packaging facilities. Our current microprocessor assembly and test facilities are located
in Malaysia and China and are described in further detail in the section entitled “Assembly, Test, Mark and
Packaging Facilities,” above.
In some cases, we lease all or a portion of the land on which our facilities are located. We lease
approximately 422,000 square feet of land in Suzhou, China for our microprocessor assembly and test facilities.
As of December 27, 2014, we also leased approximately 2.5 million square feet of space for engineering,
manufacturing, warehouse and administrative use, including our headquarters in Sunnyvale, California, our
principal administrative facilities in Austin, Texas, and a number of smaller regional sales offices located in
commercial centers near customers, principally in the United States, Latin America, Europe and Asia. These
leases expire at varying dates through 2025, although some of these leases include optional renewals. The lease
for our headquarters in Sunnyvale, California expires in December 2018, and provides for two successive 10-year
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