AMD 2006 Annual Report Download - page 79

Table of Contents
defined as consolidated net income adjusted for non-cash items and changes in working capital, but subtracting actual capital expenditures and mandatory and
optional repayment of any funded debt (other than revolving loans, except to the extent the revolving loan commitment is permanently reduced). See “Part II,
Item 7, MD& A- October 2006 Term Loan,” below for more information regarding the terms of this loan.
Despite these mandatory prepayment obligations, we believe that, in the event additional funding is required, 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.
We have an ongoing authorization from the Board of Directors to repurchase up to $300 million worth of our common stock over a period of time to be
determined by management. These repurchases may be made in the open market or in privately negotiated transactions from time to time in compliance with
applicable rules and regulations, subject to market conditions, applicable legal requirements and other factors. We are not required to repurchase any particular
amount of our common stock and the program may be suspended at any time at our discretion. During the fourth quarter of 2006, we did not repurchase any of
our equity securities pursuant to this Board authorized program.
Contractual Obligations
The following table summarizes our principal contractual cash obligations at December 31, 2006, and is supplemented by the discussion following the
table.
Contractual obligations at December 31, 2006 were:
Contractual Obligations
Payment due by period
Total
Fiscal
2007
Fiscal
2008
Fiscal
2009
Fiscal
2010
Fiscal
2011
Fiscal 2012
and beyond
(In millions)
October 2006 Term Loan $ 2,216 $ 18 $ 23 $ 22 $ 22 $ 22 $ 2,109
Fab 36 Term Loan 893 53 179 268 304 89 —
Repurchase obligations to Fab 36 Partners(1) 126 42 42 42 — — —
7.75% Senior Notes Due 2012 390 — — — — — 390
Other debt 12 3 1 1 1 1 5
Other long-term liabilities 87 6 51 20 — — 10
Aggregate interest obligation(2) 1,522 299 274 247 216 195 291
Obligations under capital leases(3) 315 25 25 26 26 26 187
Operating leases 381 69 64 54 49 26 119
Unconditional purchase commitments(4) 3,035 1,240 624 364 105 102 600
Total contractual obligations $ 8,977 $ 1,755 $ 1,283 $ 1,044 $ 723 $ 461 $ 3,711
(1) Represents the amount of silent partnership contributions that our subsidiaries are required to repurchase from the unaffiliated limited partners of AMD
Fab 36 KG and is exclusive of the guaranteed rate of return. See “Fab 36 Term Loan and Guarantee and Fab 36 Partnership Agreements,” below.
(2) Represents estimated aggregate interest obligations for our debt obligations (excluding capital lease obligations), including the guaranteed rate of return on
our repurchase of the unaffiliated partners’ silent partnership contributions, based on our assumptions regarding wafer output.
(3) Includes principal and interest.
(4) We have unconditional purchase commitments for goods and services where payments are based, in part, on volume or type of services we require. In
those cases, we only included the minimum volume of purchase commitments in the table above. Also, purchase orders for goods and services that are
cancelable upon notice and without significant penalties are not included in the amounts above.
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Source: ADVANCED MICRO DEVIC, 10-K, March 01, 2007