AMD 2005 Annual Report Download - page 23

Table of Contents
ITEM 1B. UNRESOLVED STAFF COMMENTS
We have not received any written comments that were issued more than 180 days before December 25, 2005, the end of the fiscal year covered by this
report, from the Securities and Exchange Commission staff regarding our periodic or current reports under the Securities Exchange Act of 1934 that remain
unresolved.
ITEM 2. PROPERTIES
At December 25, 2005, we owned principal engineering, manufacturing, warehouse and administrative facilities located in the United States, Germany,
Singapore and Malaysia. These facilities totaled approximately 2.8 million square feet. Of this amount, 2.2 million square feet were located in Dresden, Germany
and were used primarily for wafer fabrication, research and development, and administrative offices.
In some cases, we lease all or a portion of the land on which these facilities are located. Specifically, we lease approximately 115,000 square feet of land in
Singapore and 270,000 square feet of land in Suzhou, China for our microprocessor assembly and test facilities. In addition, Fab 30 and Fab 36 are located on
approximately 9.7 million square feet of land. Of this amount, Fab 36 owns approximately 5.4 million square feet, and both the facility and the land are
encumbered by a lien securing the obligations of our German subsidiary, AMD Fab 36 Limited Liability Company & Co. KG (AMD Fab 36 KG), the entity that
owns the Fab 36 assets, under its EUR 700 million term loan facility agreement with a consortium of banks in connection with the Fab 36 project, (Fab 36 Loan
Agreements.) See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Fab 36 Term Loan and Guarantee and Fab 36
Partnership Agreements.”
As of December 25, 2005, we also leased approximately 1.8 million square feet of space for engineering, manufacturing, warehouse and administrative
use, including 26 sales offices located in commercial centers near customers, principally in the United States, Latin America, Europe and Asia. These leases
expire at varying dates through 2018.
We also have approximately 270,000 square feet of building space that is currently vacant. We continue to have lease obligations with respect to this space
that expire at various dates through 2011. We are actively marketing this space for sublease. We anticipate that Spansion will lease approximately 71,000 square
feet of this building space in 2006.
In April 2005, we announced plans for a new campus for design and administrative functions to be developed on approximately 58 acres in Austin, Texas.
We expect that the campus will consist of approximately 825,000 square feet and will include four office buildings, garage structures and a common building to
be used for an employee cafeteria, fitness center and conference space. We intend to incorporate advanced environmentally sensitive building techniques and
materials during the design, development and construction process and to concentrate development to approximately 33 of the available 58 acres. The remainder
of the land would remain undeveloped. We expect construction of the new campus to begin in 2006 with relocation to occur during 2007.
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 believe that our existing facilities are suitable and adequate for our present purposes,
and that, except as discussed above, the productive capacity of such facilities is substantially being utilized or we have plans to utilize it.
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Source: ADVANCED MICRO DEVIC, 10-K, February 27, 2006