AMD 1994 Annual Report Download - page 415

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
No provision has been made for income taxes on approximately $231.5 million of
cumulative undistributed earnings of certain foreign subsidiaries because it is
the company's intention to permanently invest such earnings. If such earnings
were distributed, additional taxes of $81.0 million would accrue.
The company's Far East assembly and test plants in Singapore and Thailand
are operated under various tax holidays which expire in whole or in part during
1996 and 1998. Possible extensions of the holiday period, as well as other tax
incentives, are anticipated to result in minimal tax liabilities in these
countries through 1998. The net impact of these tax holidays was an increase of
net income of approximately $5.2 million ($.05 per share) in 1994.
8. DEBT
The company has certain debt agreements that contain provisions regarding
restrictions on cash dividends, maintenance of specified working capital and
net worth levels, and specific financial ratio requirements. At December 25,
1994, the company was in compliance with all restrictive covenants of such
debt agreements and all retained earnings were restricted as to payments of
cash dividends on common stock.
Significant elements of uncommitted, unsecured revolving lines of credit
are:
- - -------------------------------------------------------------------------------------------------------------
(Thousands except percent) 1994 1993 1992
------------------------------------
Total lines of credit $378,182 $188,200 $100,946
Portion of lines of credit available to foreign subsidiaries 128,182 83,200 100,946
Amounts outstanding at year-end:
Short-term 32,459 30,994 40,659
Short-term borrowings:
Average daily borrowings 33,449 35,783 45,381
Maximum amount outstanding at any month-end 35,384 38,009 52,026
Weighted monthly average interest rate 4.32% 5.81% 7.84%
Average interest rate on amounts outstanding at year-end 4.42% 4.54% 6.94%
- - -------------------------------------------------------------------------------------------------------------
Interest on foreign and short-term domestic borrowings is negotiated at the
time of the borrowing.
On January 5, 1995, the company obtained a $150 million single term four-
year loan with a consortium of eight commercial banks. The loan has a variable
interest rate starting at 8.06 percent and requires quarterly interest payments
with the principal to be paid at the end of the term in 1998.
Information with respect to the company's long-term debt and capital lease
obligations at year-end is:
- - ------------------------------------------------------------------------------------------------------
(Thousands) 1994 1993
----------------------
6.88% promissory notes with principal and interest payable
annually through January 2000, secured by a partnership interest $11,946 $12,920
9.88% mortgage with principal and interest payable in monthly
installments through April 2007 2,382 2,577
Obligations under capital leases 82,714 76,392
Obligations secured by equipment 6,482 7,997
Other 123 823
-------- --------
103,647 100,709
Less: current portion (27,895) (21,205)
-------- --------
Long-term debt and capital lease obligations, less current portion $75,752 $79,504
======== ========
- - ------------------------------------------------------------------------------------------------------
20 ADVANCED MICRO DEVICES, INC.
Source: ADVANCED MICRO DEVIC, 10-K, March 07, 1995