AMD 2004 Annual Report Download - page 34

Table of Contents
The following table summarizes activities under the 2002 Restructuring Plan through December 26, 2004:
Severance
and
Employee
Benefits
Asset
Impairment
Exit and
Equipment
Decommission
Costs
Other
Restructuring
Charges Total
(in thousands)
2002 provision $ 68,770 $ 118,590 $ 138,900 $ 4,315 $ 330,575
Non-cash charges — (118,590) — — (118,590)
Cash charges (14,350) — (795) — (15,145)
Accruals at December 29, 2002 $ 54,420 — $ 138,105 $ 4,315 $ 196,840
2003 provision — $ 7,791 $ 3,314 — $ 11,105
Cash charges (38,816) — (20,796) (4,300) (63,912)
Non-cash charges — (7,791) — — (7,791)
Non-cash adjustments (8,864) — — (15) (8,879)
Accruals at December 28, 2003 $ 6,740 — $ 120,623 — $ 127,363
Cash charges (6,789) (20,150) (26,939)
Non-cash adjustments $ 49 $ 5,203 $ 5,252
Accruals at December 26, 2004 — — $ 105,676 — $ 105,676
Effects of 2001 Restructuring Plan
In 2001, in response to the continued slowdown in the semiconductor industry and a resulting decline in revenues, we implemented a restructuring plan
(the 2001 Restructuring Plan). We completed our execution of the 2001 Restructuring Plan as of December 26, 2004.
During 2003, we reduced the estimated accrual of the facility and equipment decommission costs by $12.2 million based on the most current information
available and we realized a recovery of approximately $3.9 million for the excess of the sale price over the estimated fair value of equipment that we determined
was impaired as a result of the 2001 Restructuring Plan. Both amounts were included in restructuring and other special charges (recoveries), net. With the
formation of Spansion and other business changes, we no longer track the overall cost savings from this 2001 Restructuring Plan because we do not believe the
information would be useful.
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 $ — $ — $ — $ —
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Source: ADVANCED MICRO DEVIC, 10-K, March 01, 2005