AMD 2000 Annual Report Download - page 412

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
borrowing under the Loan Agreement rises to certain levels. The Company's
obligations under the Loan Agreement are secured by a pledge of most of its
accounts receivable, inventory, general intangibles and the related proceeds. As
of December 31, 2000, the Company had not borrowed any funds under the Loan
Agreement.
In May 1998, the Company sold $517.5 million of Convertible Subordinated Notes
due May 15, 2005 (Convertible Subordinated Notes) under its $1 billion shelf
registration declared effective by the Securities and Exchange Commission on
April 20, 1998. Interest on the Convertible Subor-dinated Notes accrues at the
rate of six percent per annum and is payable semiannually in arrears on May 15
and November 15 of each year, commencing November 15, 1998. The Convertible
Subordinated Notes are redeemable at the Company's option on and after May 15,
2001. The Notes are convertible at the option of the holder at any time prior to
the close of business on the maturity date, unless previously redeemed or
repurchased, into shares of common stock at a conversion price of $18.50 per
share, subject to adjustment in certain circumstances.
Included in other is $172 million of deferred grants and subsidies related to
the Dresden Fab 30 project. See Note 2. Also included in other is a deferred
gain of $29 million as of December 31, 2000, as a result of the sale and
leaseback of the Company's corporate marketing, general and administrative
facility in 1998. The Company is amortizing the deferred gain ratably over the
lease term, which is 20 years. See Note 12. In addition, there is $143 million
in deposits related to long-term Memory products agreements with Cisco Systems
and Hewlett-Packard which guarantees shipments of products.
For each of the next five years and beyond, the Company's debt and capital lease
obligations are:
---------------------------------------------------------------------------------------------------
Debt Capital
(Thousands) (Principal only) leases
---------------------------------------------------------------------------------------------------
2001 41,101 9,266
2002 136,630 4,119
2003 93,299 3,374
2004 76,404 903
2005 589,019 -
Beyond 2005 336 -
----------- ----------
Total $ 936,789 $ 17,662
Less: amount representing interest - (1,788)
----------- ----------
Total at present value $ 936,789 $ 15,874
=========== ==========
---------------------------------------------------------------------------------------------------
Obligations under the lease agreements are collateralized by the assets leased.
The Company- leased assets totaled approximately $53 million and $64 million as
of December 31, 2000 and December 26, 1999, respectively. Accumulated
amortization of these leased assets was approximately $39 million as of both
December 31, 2000 and December 26, 1999.
The above debt agreements limit the Company and its subsidiaries' ability to
engage in various transactions and require satisfaction of specified financial
performance criteria. As of December 31, 2000, 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.
-44-
Source: ADVANCED MICRO DEVIC, 10-K405, March 20, 2001