AMD 2001 Annual Report Download - page 259

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
impairment charges. The asset impairment charges relate primarily to buildings
and production equipment and have been incurred as a result of the Company's
decision to implement the plan.
The following table summarizes activity under the plan through December 30,
2001:
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(Thousands) Severance Facility Facility and
and and equipment Other
employee equipment decommission facilities
benefits impairment costs exit costs Total
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2001 provision $34,105 $ 39,000 $ 15,500 $ 700 $ 89,305
Cash charges (7,483) - - (54) (7,537)
Non-cash charges - (39,000) - - (39,000)
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Accruals at December 30, 2001 $26,622 $ - $ 15,500 $ 646 $ 42,768
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The Company expects to substantially complete execution of its restructuring
plan by the end of the second quarter of 2002. As of December 30, 2001, 786
employees were terminated resulting in cash payments of approximately $7.5
million in severance and employee benefit costs.
During 1999, the Company initiated a review of its cost structure. Based upon
this review, the Company recorded restructuring and other special charges of $38
million in 1999 to better align its cost structure with the expected revenue
growth rates.
The restructuring and other special charges for the year ended December 26,
1999, and the related activity during 1999, 2000 and 2001, are reflected in the
table below:
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Severance Equipment Discontinued
and employee disposal system
(Thousands) benefits Facilities Equipment costs projects Total
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1999 provision $ 3,024 $ 968 $ 23,769 $ 4,380 $ 6,089 $ 38,230
Cash charges (3,024) (56) - (1,937) - (5,017)
Non-cash charges - - (23,769) - (6,089) (29,858)
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Accruals at December 26, 1999 - 912 - 2,443 - 3,355
Cash charges - (429) - (2,443) - (2,872)
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Accruals at December 31, 2000 - 483 - - - 483
Cash charges - (443) - - - (443)
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Accruals at December 30, 2001 $ - $ 40 $ - $ - $ - $ 40
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The Company anticipates that the remaining accruals for sales office facilities
will be utilized over the period through lease termination in the second quarter
of 2002.
Source: ADVANCED MICRO DEVIC, 10-K, March 07, 2002