AMD 2014 Annual Report Download - page 58

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Sale and Leaseback Transactions
In September 2013, we sold a light industrial building in Singapore and leased back a portion of the original
space. We received net cash proceeds of $46 million in connection with the sale, which resulted in a $17 million
gain that we recorded in the third quarter of 2013 and a deferred gain of $14 million (as of September 28, 2013)
that is being amortized over the initial operating lease term. The initial operating lease term expires in September
2023 and provides for options to extend the operating lease for 4 years at the end of the initial lease term and for
an additional 3.5 years thereafter.
In September 2013, we also sold an office building in Austin, Texas. We received net cash proceeds of $10
million in connection with the sale and recorded a $5 million gain in the third quarter of 2013.
In March 2013, we sold and leased back certain land and office buildings in Austin, Texas. We received net
cash proceeds of $164 million in connection with the sale and recorded a $52 million charge in the first quarter of
2013. The operating lease expires in March 2025 and provides for one 10-year optional renewal.
In March 2013, we also sold an office building in Markham, Ontario, Canada and leased back a portion of
the original space through June 2013. We received net cash proceeds of $13 million in connection with the sale
and recorded a $6 million gain in the first quarter of 2013.
The net charge of $24 million recognized in 2013 related to the real estate transactions described above is
recorded in the “Restructuring and other special charges, net” line item on the consolidated statements of
operations.
Executive Officer Separation
In the fourth quarter of 2014, we recorded other special charges of $13 million. The amount primarily
included $10 million due to the departure of our former CEO, of which $5 million was related to cash and $5
million was related to stock-based compensation expenses. The amount is recorded as “Restructuring and other
special charges, net” on the consolidated statements of operations.
Interest Income
Interest income was $3 million in 2014 compared to $5 million in 2013. The decrease was primarily due to a
decrease in average investments in marketable securities and a decrease in the weighted-average interest rate
during 2014.
Interest income was $5 million in 2013 compared to $8 million in 2012. The decrease was primarily due to a
decrease in average investments in marketable securities during 2013.
Interest Expense
Interest expense of $177 million in 2014 was relatively flat as compared to $177 million in 2013 and $175
million in 2012.
Other Income (Expense), Net
Other expense, net, in 2014 was $69 million compared to $5 million of other expense, net, in 2013 and $6
million of other income, net, in 2012.
In 2014, we recognized $69 million of other expense, net, primarily due to a $61 million loss from debt
repurchases and a $7 million loss from foreign currency exchange rate fluctuations.
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