AMD 2005 Annual Report Download - page 120

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Table of Contents
obligations from January 2009 through 2011 would to be between $276 million and $306 million. In addition, unconditional purchase commitments also include
$107 million for software maintenance agreements that require periodic payments through 2009. The remaining commitments primarily consist of
non-cancelable contractual obligations to purchase raw materials, natural resources and office supplies. Purchase orders for goods and services that are
cancelable without significant penalties are not included in the total amount.
The Company accounts for guarantees in accordance with FIN 45, “Guarantor’s Accounting and Disclosure Requirements for Guarantees, Including
Indirect Guarantees of Indebtedness of Others.”
Guarantees of Indebtedness Recorded on the Company’s Consolidated Balance Sheet
The following table summarizes the principal guarantees issued as of December 25, 2005 related to underlying liabilities that are already recorded on the
Company’s consolidated balance sheet as of December 25, 2005 and their expected expiration dates by year. No incremental liabilities are recorded on the
Company’s consolidated balance sheet for these guarantees:
Amounts
Guaranteed
Fiscal
2006
Fiscal
2007
Fiscal
2008
Fiscal
2009
Fiscal
2010
Fiscal
2011 and
Beyond
(In thousands)
Repurchase Obligations to Fab 36 partners(1)(2) $ 151,924 $ 37,981 $ 37,981 $ 37,981 $ 37,981 $ — $ —
(1) Amounts represent the principal amount of the underlying obligations guaranteed and are exclusive of obligations for interest, fees and expenses.
(2) This amount represents the silent partnership contributions that the Company is required to repurchase from the unaffiliated limited partners of AMD Fab
36 KG. See “Fab 36 Term Loan and Guarantee and Fab 36 Partnership Agreements,” in Note 8.
Guarantees of Indebtedness not Recorded on the Company’s Consolidated Balance Sheet
The following table summarizes the principal guarantees issued as of December 25, 2005 for which the related underlying liabilities are not recorded on
the Company’s consolidated balance sheets as of December 25, 2005, and their expected expiration dates.
Amounts
Guaranteed(1)
Fiscal
2006
Fiscal
2007
Fiscal
2008
Fiscal
2009
Fiscal
2010
Fiscal
2011 and
Beyond
(In thousands)
AMTC revolving loan guarantee $ 37,981 $ — $ 37,981 $ — $ — $ — $ —
AMTC rental guarantee(2) 118,837 — — — — — 118,837
Spansion Japan term loan guarantee(3) 43,363 24,779 18,584 — — — —
Spansion capital lease guarantees(3) 35,851 32,598 3,253 — — — —
Spansion operating lease guarantees(3) 7,072 3,997 2,050 1,025 — — —
Other 3,448 3,448 — — — — —
Total guarantees $ 246,552 $ 64,822 $ 61,868 $ 1,025 $ — $ — $ 118,837
(1) Amounts represent the principal amount of the underlying obligations guaranteed and are exclusive of obligations for interest, fees and expenses.
(2) Amount of the guarantee diminishes as the rent is paid.
(3) Notwithstanding the Spansion IPO, the Company agreed to maintain its guarantees of these Spansion obligations.
115
Source: ADVANCED MICRO DEVIC, 10-K, February 27, 2006