AMD 2002 Annual Report Download - page 81

Table of Contents
The following table summarizes activity under the 2001 Plan through December 29, 2002:
Severance and
employee
benefits
Facility and
equipment
impairment
Facility and
equipment
decommission
costs
Other
facilities
exit costs Total
(Thousands)
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)
Accrual at December 30, 2001 $ 26,622 $ — $ 15,500 $ 646 $ 42,768
Cash Charges (26,622) — (445) — (27,067)
Accrual at December 29, 2002 $ — $ — $ 15,055 $ 646 $ 15,701
NOTE 15: Business Acquisition
On February 19, 2002, the Company completed the acquisition of Alchemy Semiconductor, Inc. (Alchemy), a privately held company, for approximately
$30 million in cash consideration to Alchemy stockholders. Alchemy designed, developed and marketed low-power, high-performance microprocessors for
personal connectivity devices such as personal digital assistants (PDAs), web tablets and portable and wired Internet access devices and gateways.
The Company accounted for the acquisition using the purchase method and the assets and operations acquired were combined with the Company’s Core
Products segment. Approximately $2.9 million of the purchase price represented acquired in-process research and development that had not yet reached
technological feasibility and had no alternative future use. The $2.9 million was expensed upon the acquisition of Alchemy. In addition, the Company recorded
$18.7 million of goodwill, which is not being amortized, based on the residual difference between the amount paid and the fair values assigned to identified
tangible and intangible assets using an independent valuation.
Alchemy’s historical and 2002 results of operations before it was acquired by the Company were not significant.
Following the provisions of SFAS 142, “Goodwill and Intangible Assets,” the Company performed an impairment analysis of goodwill recorded as a result
of the Alchemy acquisition and determined that there was no impairment of goodwill as of December 29, 2002.
NOTE 16: Share Repurchase Program
On January 29, 2001, the Company announced that the Board of Directors had authorized a program to repurchase up to $300 million worth of the
Company’s common stock over a period of time to be determined by management. Any such repurchases will be made, from time to time, in the open market or
in privately negotiated transactions in compliance with Rule 10b-18 of the Securities Exchange Act, subject to market conditions, applicable legal requirements
and other factors. This program does not obligate the Company to acquire any particular amount of its common stock, and the program may be suspended at any
time at the Company’s discretion. The Company did not purchase any shares under this program during fiscal 2002. As of December 29, 2002, 6,310,580 shares
had been repurchased at an aggregate price of approximately $77 million under the program.
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Source: ADVANCED MICRO DEVIC, 10-K, March 14, 2003