AMD 2002 Annual Report Download - page 16

Table of Contents
From time to time, we have been notified that we may be infringing intellectual property rights of others. If any such claims are asserted against us, we
may seek to obtain a license under the third party’s intellectual property rights. We cannot assure you that all necessary licenses can be obtained on satisfactory
terms, or at all. We could decide, in the alternative, to resort to litigation to challenge such claims. Such challenges could be extremely expensive and
time-consuming and could have a material adverse effect on us. We cannot assure you that litigation related to the intellectual property rights of us or others will
always be avoided or successfully concluded.
Backlog
We manufacture and market standard lines of products. Consequently, a significant portion of our sales are made from inventory on a current basis. Sales
are made primarily pursuant to purchase orders for current delivery or agreements covering purchases over a period of time, which orders or agreements may be
revised or canceled without penalty. Generally, in light of current industry practice and experience, we do not believe that such agreements provide meaningful
backlog figures or are necessarily indicative of actual sales for any succeeding period.
Employees
On February 23, 2003, we employed approximately 12,146 employees, none of whom are represented by collective bargaining arrangements. We believe
that our relationship with our employees is good.
ITEM 2. PROPERTIES
Our principal engineering, manufacturing, warehouse and administrative facilities comprise approximately 4.4 million square feet and are located in
Sunnyvale, California; Austin, Texas; and Dresden, Germany. Over 3.1 million square feet of this space is in buildings we own.
We have an operating lease on property containing two buildings with an aggregate of approximately 364,000 square feet, located on 45.6 acres of land in
Sunnyvale, California (One AMD Place). This operating lease ends in December 2018. In 2000, we renewed a lease agreement for approximately 175,000 square
feet located adjacent to One AMD Place (AMD Square) to be used by the product groups as engineering offices and laboratory facilities. In 2003, our
engineering groups will no longer use AMD Square. We are currently vacating AMD Square and attempting to sublease this space.
We also own or lease facilities containing approximately 1.4 million square feet for our operations in Malaysia, Thailand, Singapore and China. We lease
approximately 15 acres of land in Suzhou, China for our assembly and test facility. We acquired approximately 115 acres of land in Dresden, Germany for Fab
30. Fab 30 is encumbered by a lien securing borrowings of AMD Saxony. Fab 25 in Austin, Texas is encumbered by a lien securing our Term Loan and Security
Agreement dated September 27, 2002.
We lease 11 sales offices in North America, 12 sales offices in Asia Pacific, 8 sales offices in Europe and one sales office in South America for our direct
sales force. These offices are located in cities in major electronics markets where concentrations of our customers are located.
Leases covering our facilities expire over terms of generally one to 20 years. We currently do not anticipate difficulty in either retaining occupancy of any
of our facilities through lease renewals prior to expiration or through month-to-month occupancy, or replacing them with equivalent facilities. We are currently
vacating and attempting to sublease space in Austin, Texas and, as noted above, in Sunnyvale, California.
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Source: ADVANCED MICRO DEVIC, 10-K, March 14, 2003