AMD 2006 Annual Report Download - page 53

Table of Contents
Department of Justice Subpoena
On November 29, 2006, AMD received a subpoena for documents and information in connection with the U.S. Department of Justice (DOJ) criminal
investigation into potential antitrust violations related to graphics processing units and cards. AMD entered the graphics processor business following our
acquisition of ATI on October 25, 2006. The DOJ has not made any specific allegations against AMD or ATI. AMD is cooperating with the investigation.
GPU Class Actions
Currently approximately thirty-six related antitrust actions have been filed against AMD, ATI and Nvidia Corporation, in the Northern District of
California, the Central District of California, the District of Massachusetts, the Western District of Wisconsin, the District of South Carolina, the District of
Kansas and the District of Vermont. According to the complaints, plaintiffs filed each of the actions after reading press reports that AMD and Nvidia had
received subpoenas from the U.S. Department of Justice Antitrust Division in connection with the DOJ’s investigation into potential antitrust violations related to
graphics processing units and cards. All of the actions appear to allege that the defendants conspired to fix, raise, maintain, or stabilize the prices of graphics
processing units and cards in violation of federal antitrust law and/or state antitrust law. Further, each of the complaints is styled as a putative class action and
alleges a class of plaintiffs (either indirect or direct purchasers) who purportedly suffered injury as a result of the defendants’ alleged conduct. The majority of
the complaints propose a class period from November or December 2002 to the present.
Environmental Matters
We are named as a responsible party on Superfund clean-up orders for three sites in Sunnyvale, California that are on the National Priorities List. Since
1981, we have discovered hazardous material releases to the groundwater from former underground tanks and proceeded to investigate and conduct remediation
at these three sites. The chemicals released into the groundwater were commonly used in the semiconductor industry in the United States in the wafer fabrication
process prior to 1979.
In 1991, we received Final Site Clean-up Requirements Orders from the California Regional Water Quality Control Board relating to the three sites. We
have entered into settlement agreements with other responsible parties on two of the orders during the term of such agreements. Under these agreements other
parties have assumed most of the foreseeable costs as well as the primary role in conducting remediation activities under the orders. We remain responsible for
additional costs beyond the scope of the agreements as well as all remaining costs in the event that the other parties do not fulfill their obligations under the
settlement agreements.
To address anticipated future remediation costs under the orders, we have computed and recorded an estimated environmental liability of approximately
$4.2 million in accordance with applicable accounting rules and have not recorded any potential insurance recoveries in determining the estimated costs of the
cleanup. The progress of future remediation efforts cannot be predicted with certainty, and these costs may change. We believe that the potential liability, if any,
in excess of amounts already accrued, will not have a material adverse effect on our financial condition or results of operations.
Other Matters
We are a defendant or plaintiff in various other actions that arose in the normal course of business. In the opinion of management, the ultimate disposition
of these matters will not have a material adverse effect on our financial condition or results of operations.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No matters were submitted to a vote of security holders during the fourth quarter of the fiscal year covered by this report.
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Source: ADVANCED MICRO DEVIC, 10-K, March 01, 2007