AMD 2014 Annual Report Download - page 67

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 subject to financial covenants requirement and
are required to maintain a fixed charge coverage ratio of 1:1 for each trailing four-fiscal quarter period ending on
and after March 29, 2014.
At December 27, 2014, the Secured Revolving Line of Credit had an outstanding loan balance of $130
million, with an interest rate of 4.25%, $6 million related to outstanding Letters of Credit, and up to $364 million
available for future borrowings. As of December 27, 2014, we were in compliance with all required covenants
stated in the Loan Agreement.
The agreements governing our 6.00% Notes, 6.75% Notes, 7.75% Notes, 7.50% Notes, 7.00% Notes and
our Secured Revolving Line of Credit 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 consisted of $67 million of
payments due under certain software and technology licenses that will be paid through 2018.
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 27, 2014,
primarily consisted of $17 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. Deferred rent
related to our facilities in Sunnyvale, California of $7 million and accruals related to facility consolidation and
site closure costs under our 2012 restructuring plan of $6 million are excluded from other long-term liabilities in
the contractual obligations table above as they are included in the operating leases obligations. Also excluded
from other long-term liabilities in the contractual obligations table above are $5 million of environmental
reserves and $3 million of non-current unrecognized tax benefits, which represent potential cash payments that
could be payable by us upon settlements with the related authorities. We have not included these amounts in the
contractual obligations table above because we cannot make reasonably reliable estimates regarding the timing of
the settlements with the related authorities, if any.
Capital Lease Obligations
As of December 27, 2014, we had aggregate outstanding capital lease obligations of $12 million for one of
our facilities in Canada, which is payable in monthly installments through 2017.
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 one to five years. Total future non-cancelable lease
obligations as of December 27, 2014 were $340 million, including approximately $284 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.
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