AMD 2006 Annual Report Download - page 50

Table of Contents
ITEM 2. PROPERTIES
At December 31, 2006, we owned principal engineering, manufacturing, warehouse and administrative facilities located in the United States, Canada,
China, 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.
Our main facility with respect to our graphics and chipset products and products for consumer electronics devices is located in Markham, Ontario, Canada.
This facility consists of approximately 240,000 square feet of office and research and development space. We have a 50 percent interest in the joint venture
company that owns this facility. We own five other facilities in Markham, Ontario that comprise over 165,000 square feet, including approximately 65,000
square-feet of manufacturing and warehouse space.
In some cases, we lease all or a portion of the land on which our facilities are located. We lease approximately 218,000 square feet of land in Singapore
and 270,000 square feet of land in Suzhou, China for our microprocessor and test facility. 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 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 31, 2006, we also leased approximately 3.0 million square feet of space for engineering, manufacturing, warehouse and administrative
use, including a number of smaller regional 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 220,000 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. Spansion leases approximately 71,000 square feet from us.
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. 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. Construction of the new campus is underway and we expect that we will occupy the facility in the second half
of 2007 or the first half of 2008.
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.
ITEM 3. LEGAL PROCEEDINGS
In addition to ordinary routine litigation incidental to the business, AMD or its indirectly wholly-owned subsidiary, ATI, were party to the following
material legal proceedings. The outcome of any litigation is uncertain and should any of these actions or proceedings against us be successful, we may be subject
to significant damages awards which could have a material adverse effect on our financial condition.
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Source: ADVANCED MICRO DEVIC, 10-K, March 01, 2007