AMD 2008 Annual Report Download - page 155

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history of indemnification claims and the unique facts and circumstances that are likely to be involved in each
particular claim and indemnification provision. Historically, payments made by the Company under these
obligations have not been material.
NOTE 14: Accrued Liabilities
The Company’s accrued liabilities at December 27, 2008 and December 29, 2007 consisted of:
December 27,
2008
December 29,
2007
(In millions)
Marketing program and advertising expenses .............. $216 $218
Software technology licenses payable .................... 87 121
Interest payable ..................................... 77 89
Others ............................................. 405 393
$785 $821
NOTE 15: Restructuring
In the second and fourth fiscal quarters of 2008 the Company implemented restructuring plans (collectively,
the 2008 Restructuring Plans) to reduce its cost structure. The plans primarily involve the termination of
employees. In addition, the restructuring plan implemented in the fourth fiscal quarter of 2008 involves
additional cost reduction actions that either have taken place during the fourth fiscal quarter of 2008 or will take
place in 2009. The restructuring charges for the restructuring plan implemented during the second fiscal quarter
of 2008 represent primarily severance and costs related to the continuation of certain employee benefits and the
costs related to the termination of a contract. The restructuring charges for the restructuring plan implemented
during the fourth fiscal quarter of 2008 represent primarily severance and costs related to the continuation of
certain employee benefits, contract or program termination costs, asset impairments and exit costs for facility site
consolidations and closures. The restructuring plan implemented in the second fiscal quarter of 2008 was
substantially completed during the fourth fiscal quarter of 2008. The restructuring plan implemented in the fourth
fiscal quarter of 2008 is expected to be substantially completed during 2009. For 2008, restructuring charges
were $90 million. Of the $90 million, approximately $28 million will result in cash expenditures in 2009.
These charges have been aggregated and appear on the line item entitled “Restructuring charges” in the
Company’s consolidated statement of operations, with the exception of $1 million in 2008, which is classified as
discontinued operations.
The following table provides a summary of the second quarter 2008 restructuring activities and the related
liabilities recorded in the Other current liabilities on the Company’s 2008 consolidated balance sheet remaining
as of December 27, 2008:
(In millions)
Severance
and related
benefits
Other exit-
Related
Costs
Balance December 29, 2007 ............................... $— $—
Charges ............................................... 32 9
Cash payments ......................................... (28) (3)
Non-cash charges ....................................... — (6)
Balance December 27, 2008 ............................... $ 4 $—
145