AMD 2008 Annual Report Download - page 156

The following table provides a summary of the fourth quarter 2008 restructuring activities and the related
liabilities recorded in Other current liabilities on the Company’s consolidated balance sheet remaining as of
December 27, 2008:
(In millions)
Severance
and related
benefits
Other exit-
Related
Costs
Balance December 29, 2007 ............................... $— $—
Charges ............................................... 21 28
Cash payments ......................................... (7) (1)
Non-cash charges ....................................... — (18)
Balance December 27, 2008 ............................... $ 14 $ 9
In December 2002, the Company initiated a restructuring plan (the 2002 Restructuring Plan) to further align
the cost structure to industry conditions resulting from weak customer demand and industry-wide excess
inventory. The 2002 Restructuring Plan resulted in the consolidation of facilities, primarily at the Sunnyvale,
California site and at sales offices worldwide. The Company vacated and is attempting to sublease certain
facilities that the Company currently occupies under long-term operating leases through 2011. At December 27,
2008 and December 29, 2007, the Company had approximately $32 million and $50 million, respectively, of
2002 restructuring related accruals recorded which will continue to be paid through 2011.
The following table provides a summary of 2002 restructuring activities and the related liabilities recorded
in Other current liabilities on the Company’s consolidated balance sheet remaining as of December 31,
2006, December 29, 2007 and December 27, 2008:
(In millions)
Other exit-
Related
Costs
Balance December 31, 2006 .......................................... $ 67
Cash payments .................................................... (17)
Balance December 29, 2007 .......................................... $ 50
Cash payments .................................................... (18)
Non-cash charges .................................................. —
Balance December 27, 2008 .......................................... $ 32
NOTE 16: Contingencies
Environmental Matters
The Company is 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, the Company has 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, the Company received Final Site Clean-up Requirements Orders from the California Regional
Water Quality Control Board relating to the three sites. The Company has entered into settlement agreements
with other responsible parties on two of the orders. During the term of such agreements other parties have agreed
to assume most of the foreseeable costs as well as the primary role in conducting remediation activities under the
orders. The Company remains 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, the Company has computed and recorded
an estimated environmental liability of approximately $3.3 million in accordance with applicable accounting
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