AMD 2005 Annual Report Download - page 43

Table of Contents
effective registration statement; through the issuance of securities in a transaction exempt from registration under the Securities Act of 1933; or a combination of
one or more of the foregoing. We believe that, in the event of such requirements, we will be able to access the capital markets on terms and in amounts adequate
to meet our objectives. However, given the possibility of changes in market conditions or other occurrences, there can be no certainty that such funding will be
available on terms favorable to us or at all.
4.50% Convertible Senior Notes Due 2007
On November 25, 2002, we issued $402.5 million of 4.50% Convertible Senior Notes due 2007 (the 4.50% Notes) in a registered offering. Interest on the
4.50% Notes was payable semiannually in arrears on June 1 and December 1 of each year, beginning June 1, 2003. Beginning on December 4, 2005, the 4.50%
Notes were redeemable by us at our option for cash at specified prices expressed as a percentage of the outstanding principal amount plus accrued and unpaid
interest, provided that we were not able to redeem the 4.50% Notes unless the last reported sale price of our common stock was at least 150 percent of the
then-effective conversion price for at least 20 trading days within a period of 30 trading days ending within five trading days of the date of the redemption notice.
During the fourth quarter of 2004, we exchanged $201 million of the 4.50% Notes into shares of our common stock in a series of transactions. As a result
of these exchange transactions, we recognized a charge of approximately $32 million, which represented the difference between the fair value of the shares
issued in the transactions and the fair value of shares issuable pursuant to the original conversion terms of the 4.50% Notes. During the fourth quarter of 2005,
holders of the remaining 4.50% Notes elected to convert their 4.50% Notes into shares of our common stock. Accordingly, as of December 25, 2005 the 4.50%
Notes were no longer outstanding.
Contractual Cash Obligations and Guarantees
The following table summarizes our principal contractual cash obligations at December 25, 2005, and is supplemented by the discussion following the
table. Because of the closing of Spansion’s IPO on December 21, 2005, we no longer include Spansion’s contractual cash obligations in the table below.
Principal contractual cash obligations at December 25, 2005 were:
Total
Fiscal
2006
Fiscal
2007
Fiscal
2008
Fiscal
2009
Fiscal
2010
Fiscal 2011
and beyond
(In thousands)
4.75% Convertible (1)
Debentures $ 500,000 $ — $ — $ — $ — $ — $ 500,000
7.75% Notes (2)
600,000 — — — — — 600,000
Repurchase Obligations to Fab 36 Partners (3) 151,924 37,981 37,981 37,981 37,981 — —
AMD Penang Term Loan 4,831 1,525 1,526 1,526 254 — —
Capital Lease Obligations 113,534 3,718 4,193 4,686 5,082 5,784 90,071
Other Long-term Liabilities 66,288 — 17,649 17,892 14,986 14,958 803
Operating Leases (4)
325,530 50,826 47,738 43,942 36,124 32,953 113,947
Unconditional Purchase Commitments (4)(5)
1,388,504 490,391 279,200 226,819 62,804 56,183 273,107
Total principal contractual cash obligations $ 3,150,611 $ 584,441 $ 388,287 $ 332,846 $ 157,231 $ 109,878 $ 1,577,928
(1) On January 12, 2006, we sent a notice of redemption to the holders of our 4.75% Debentures with a redemption date of February 6, 2006. Prior to the
redemption date, holders of the 4.75% Debentures elected
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Source: ADVANCED MICRO DEVIC, 10-K, February 27, 2006