AMD 2004 Annual Report Download - page 120

Table of Contents
The following table summarizes activity under the 2001 Restructuring Plan from December 30, 2001 through December 26, 2004:
Severance
and
Employee
Benefits
Facilities and
Equipment
Decommission
Costs
Other
Facilities
Exit
Costs Total
(in thousands)
Accruals at December 30, 2001 $ 26,622 $ 15,500 $ 646 $ 42,768
Cash charges (26,622) (445) — (27,067)
Accruals at December 29, 2002 $ — $ 15,055 $ 646 $ 15,701
Non-cash adjustments — (11,574) (646) (12,220)
Cash charges — (2,485) — (2,485)
Accruals at December 28, 2003 $ — $ 996 $ — $ 996
Cash charges — (991) — (991)
Non-cash adjustments — (5) — (5)
Accruals at December 26, 2004 $ — $ — $ — $ —
As of December 26, 2004 and December 28, 2003, $87 million and $99 million of the total restructuring accruals of $106 million and $128 million were
included in other liabilities (long-term) on the balance sheets. (See Note 13.)
NOTE 15: Contingencies
Environmental Matters
Superfund Clean-Up Orders. The Company is named as a responsible party on Superfund clean-up orders for three sites in Sunnyvale, California that are
on the National Priorities List. Since 1981, the Company has discovered hazardous material releases to the groundwater from former underground tanks and
proceeded to investigate and conduct remediation at these three sites. The chemicals released into the groundwater were commonly used in the semiconductor
industry in the United States in the wafer fabrication process prior to 1979.
In 1991, the Company received Final Site Clean-up Requirements Orders from the California Regional Water Quality Control Board relating to the three
sites. The Company has entered into settlement agreements with other responsible parties on two of the orders. Under these agreements other parties have
assumed most of the costs as well as the primary role in conducting remediation activities under the orders. The Company remains responsible for these costs in
the event that the other parties do not fulfill their obligations under the settlement agreements.
To address anticipated future remediation costs under the orders, the Company has computed and recorded an estimated environmental liability of
approximately $3.7 million in accordance with applicable accounting rules and has not recorded any potential insurance recoveries in determining the estimated
costs of the cleanup. The progress of future remediation efforts cannot be predicted with certainty, and these costs may change. The Company believes that the
potential future liability, if any, in excess of amounts already accrued will not have a material adverse effect on the Company’s financial condition or results of
operations.
Other Matters
The Company is a defendant or plaintiff in various other actions, which arose in the normal course of business. In the opinion of management, the ultimate
disposition of these matters will not have a material adverse effect on the Company’s financial condition or results of operations.
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Source: ADVANCED MICRO DEVIC, 10-K, March 01, 2005