AMD 2007 Annual Report Download - page 44

Table of Contents
Our business is subject to potential tax liabilities.
We are subject to income taxes in the United States, Canada and other foreign jurisdictions. Significant judgment is required in determining our worldwide
provision for income taxes. In the ordinary course of our business, there are many transactions and calculations where the ultimate tax determination is uncertain.
Although we believe our tax estimates are reasonable, we cannot assure you that the final determination of any tax audits and litigation will not be materially
different from that which is reflected in historical income tax provisions and accruals. Should additional taxes be assessed as a result of an audit or litigation,
there could be a material effect on our cash, goodwill recorded as a result of our acquisition of ATI, income tax provision and net income in the period or periods
for which that determination is made.
For example, the Canadian Revenue Agency, or CRA, is auditing ATI for the years 2000—2004 with respect to transactions between ATI and its
subsidiaries. The audit has been completed and is currently in the review process. We could be subject to significant tax liability as well as a loss of certain tax
credits and other tax attributes as a result of the CRA audit.
ITEM 1B. UNRESOLVED STAFF COMMENTS
We have not received any written comments that were issued more than 180 days before December 29, 2007, the end of the fiscal year covered by this
report, from the Securities and Exchange Commission staff regarding our periodic or current reports under the Securities Exchange Act of 1934 that remain
unresolved.
ITEM 2. PROPERTIES
At December 29, 2007, we owned principal engineering, manufacturing, warehouse and administrative facilities located in the United States, Canada,
China, Germany, Singapore and Malaysia. These facilities totaled approximately 3.6 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 occupy five other facilities in Markham, Ontario that comprise over 265,000 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 facilities. 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 29, 2007, we also leased approximately 3.1 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 185,000 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 Inc. leases approximately 71,000 square feet from us.
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Source: ADVANCED MICRO DEVIC, 10-K, February 26, 2008