AMD 2014 Annual Report Download - page 83

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On March 30, 2014, the Company entered into a fourth amendment to the WSA. The primary effect of the
fourth amendment was to establish volume purchase commitments and fixed pricing for the 2014 calendar year
as well as to modify certain other terms of the WSA applicable to wafers for some of the Company’s
microprocessor, graphics processor and semi-custom game console products to be delivered by GF to us during
the 2014 calendar year.
The total purchases from GF related to wafer manufacturing and research and development activities for
2014, 2013 and 2012 were $1.0 billion, $1.0 billion and $1.2 billion, respectively.
NOTE 4: Sale and Leaseback Transactions
In September 2013, the Company sold a light industrial building in Singapore and leased back a portion of
the original space. The Company received net proceeds of $46 million in connection with the sale, which resulted
in a $17 million gain that the Company recorded in the third quarter of 2013 and a $14 million deferred gain 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 lease for 4 years, at the end of the initial
operating lease term, and for an additional 3.5 years thereafter.
In September 2013, the Company also sold an office building in Austin, Texas. The Company 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, the Company sold and leased back land and office buildings in Austin, Texas. The Company
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, the Company also sold an office building in Markham, Ontario, Canada, and leased back a
portion of the original space through June 2013. The Company 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 in 2013 related to the real estate transactions described above is recorded in
the “Restructuring and other special charges, net” on the consolidated statements of operations.
NOTE 5: Supplemental Balance Sheet Information
Inventories
December 27,
2014
December 28,
2013
(In millions)
Raw materials ....................................... $ 40 $ 30
Work in process ..................................... 431 727
Finished goods ...................................... 214 127
Total inventories, net ................................. $685 $884
Property, plant and equipment
December 27,
2014
December 28,
2013
(In millions)
Land and land improvements ........................... $ 4 $ 3
Buildings and leasehold improvements ................... 246 246
Equipment ......................................... 1,416 1,466
Construction in progress .............................. 14 18
1,680 1,733
Accumulated depreciation and amortization ............... (1,378) (1,387)
Total property, plant and equipment, net .................. $ 302 $ 346
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