AMD 2000 Annual Report Download - page 419

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
In May 2000, the Company's Stockholders approved an amendment to the Company's
Restated Certificate of Incorporation to increase the authorized number of
shares of Common Stock from 250,000,000 to 750,000,000 shares.
11. OTHER EMPLOYEE BENEFIT PLANS
Profit Sharing Program. The Company has a profit sharing program to which the
Board of Directors authorizes quarterly contributions. Profit sharing
contributions were approximately $103 million in 2000. There were no profit
sharing contributions in 1999. Profit sharing contributions were approximately
$5 million in 1998.
Retirement Savings Plan. The Company has a retirement savings plan, commonly
known as a 401(k) plan, that allows participating United States employees to
contribute from one percent to 15 percent of their pre-tax salary subject to
I.R.S. limits. Before December 26, 1999, the Company made a matching
contribution calculated at 50 cents on each dollar of the first three percent of
participant contributions, to a maximum of 1.5 percent of eligible compensation.
After December 26, 1999, the Company revised the contribution rate and
contributes 50 cents on each dollar of the first six percent of participants'
contributions, to a maximum of three percent of eligible compensation. The
contributions to the 401(k) plan were approximately $10 million in 2000, $5
million in 1999 and $5 million in 1998.
12. COMMITMENTS
The Company leases certain of its facilities under agreements which expire at
various dates through 2018. The Company also leases certain of its manufacturing
and office equipment for terms ranging from one to five years. Rent expense was
approximately $27 million, $52 million, and $54 million in 2000, 1999, and 1998,
respectively.
For each of the next five years and beyond, noncancelable long-term operating
lease obligations and commitments to purchase manufacturing supplies and
services are as follows:
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Operating Purchase
(Thousands) leases commitments
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2001 $ 289,065 $ 45,105
2002 125,520 14,971
2003 45,648 9,890
2004 46,294 9,736
2005 45,839 9,736
Beyond 2005 275,124 9,823
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$ 827,490 $ 99,261
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The operating lease of the Company's corporate marketing, general and
administrative facility expired in December 1998. At the end of the lease term,
the Company was obligated to either purchase the facility or to arrange for its
sale to a third party with a guarantee of residual value to the seller equal to
the option purchase price. In December 1998, the Company arranged for the
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Source: ADVANCED MICRO DEVIC, 10-K405, March 20, 2001