AMD 2006 Annual Report Download - page 146

Table of Contents
NOTE 15: Other Long-term Liabilities
The Company’s other long-term liabilities at December 31, 2006 and December 25, 2005 consisted of:
December 31,
2006
December 25,
2005
(In millions)
Fab 30/Fab 36 deferred grants and subsidies (see Note 9) $ 364 $ 342
Restructuring accrual (see Note 16) 48 66
Deferred gain on sale leaseback of building (see Note 14) 18 20
Other 87 31
$ 517 $ 459
Fab 30/Fab 36 deferred grants and subsidies were approximately $558 million and $481 million at December 31, 2006 and December 25, 2005. Of this
amount, approximately $194 million and $139 million were included in the caption, “Other Current Liabilities,” on the consolidated balance sheets at
December 31, 2006 and December 25, 2005. Approximately $17 million of Fab 30/Fab 36 deferred grants and subsidies as of December 31, 2006 is associated
with Fab 30, which will continue to be amortized ratably through December 2007 because the Company is required to maintain certain employee headcount
levels through December 2007. The remaining deferred grants and subsidies balance are associated with Fab 36. (See Note 9).
NOTE 16: Restructuring and Other Special Charges
2002 Restructuring Plan
In December 2002, the Company began implementing a restructuring plan (the 2002 Restructuring Plan) to further align its cost structure to industry
conditions resulting from weak customer demand and industry-wide excess inventory.
With the exception of the exit costs consisting primarily of remaining lease payments on abandoned facilities, net of estimated sublease income that are
payable through 2011, the Company has completed the activities associated with the 2002 Restructuring Plan.
The following table summarizes activities under the 2002 Restructuring Plan for the three years ended December 31, 2006:
Severance
and
Employee
Benefits
Facility Exit
and
Equipment
Decommission
Costs Total
(In millions)
Accruals at December 28, 2003 $ 7 $ 121 $ 128
Cash payments (7) (20) (27)
Non-cash adjustments — 5 5
Accruals at December 26, 2004 $ — $ 106 $ 106
Cash payments — (21) (21)
Accruals at December 25, 2005 $ — $ 85 $ 85
Cash payments — (18) (18)
Accruals at December 31, 2006 $ — $ 67 $ 67
As of December 31, 2006 and December 25, 2005, $48 million and $66 million of the total restructuring accruals of $67 million and $85 million were
included in other long-term liabilities on the consolidated balance sheets. (See Note 15).
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Source: ADVANCED MICRO DEVIC, 10-K, March 01, 2007