AMD 2001 Annual Report Download - page 253

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
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 pretax salary subject to
Internal Revenue Service 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 $11
million in 2001, $10 million in 2000 and $5 million in 1999.
NOTE 12: COMMITMENTS
The Company leases certain of its facilities under agreements that 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 $62 million, $48 million, and $52 million in 2001, 2000 and 1999,
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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2002 $ 57,612 $ 15,036
2003 47,695 10,172
2004 43,680 9,895
2005 40,636 9,895
2006 35,370 2,614
Beyond 2006 232,183 7,367
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$ 457,176 $ 54,979
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The operating lease of the Company's corporate marketing, general and
administrative facility in Sunnyvale 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 sale of the facility to a third party and leased it back under
a new operating lease. The Company deferred the gain ($37 million) on the sale
and is amortizing it over a period of 20 years, the life of the lease. The lease
expires in December 2018. At the beginning of the fourth lease year and every
three years thereafter, the rent will be adjusted by 200 percent of the
cumulative increase in the consumer price index over the prior three-year period
up to a maximum of 6.9 percent. Certain other operating leases contain
provisions for escalating lease payments subject to changes in the consumer
price index.
AMD Saxony has constructed and installed equipment in Dresden Fab 30, which
began production in the second quarter of 2000. AMD, the Federal Republic of
Germany, the State of Saxony and a consortium of banks are supporting the
project. In March 1997, AMD Saxony entered into the Dresden Loan Agreements,
which provide for the funding of the construction and facilitization of Dresden
Fab 30. The funding consists of:
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Source: ADVANCED MICRO DEVIC, 10-K, March 07, 2002