AMD 2008 Annual Report Download - page 29

previously own at least a 50 percent interest in a party obtain at least a 50 percent interest in such party, and, in
the reasonable business judgment of the other party, such change in ownership will have a material effect on the
other party’s business, or (ii) a party acquires, by merger, acquisition of assets or otherwise, all or any portion of
another legal entity such that either the assets or market value of such party after the close of such transaction are
greater than one and one third of the assets or market value of such party prior to such transaction.
Backlog
We sell standard lines of products. Consequently, a significant portion of our sales are made from inventory
on a current basis. Sales are made primarily pursuant to purchase orders for current delivery or agreements
covering purchases over a period of time. These orders or agreements may be revised or canceled without
penalty. Generally, in light of current industry practice and experience and the fact that substantially our entire
order backlog is cancelable, we do not believe that such agreements provide meaningful backlog figures or are
necessarily indicative of actual sales for any succeeding period.
Employees
As of December 27, 2008, we had approximately 14,700 employees. In connection with the sale of certain
handheld assets to Qualcomm in January 2009, approximately 170 employees have accepted employment with
Qualcomm. Upon consummation of the transactions contemplated by the Master Transaction Agreement,
approximately 2800 employees will transfer to The Foundry Company.
Environmental Regulations
Many aspects of our business operations and products are regulated by domestic and international
environmental laws and regulations. These regulations include limitations on discharge of pollutants to air, water,
and soil; remediation requirements; product chemical content limitations; manufacturing chemical use and
handling restrictions; pollution control requirements; waste minimization considerations; and requirements with
respect to treatment, transport, storage and disposal of solid and hazardous wastes. If we fail to comply with any
of the applicable environmental regulations we may be subject to fines, suspension of production, alteration of
our manufacturing processes, import/export restrictions, sales limitations, and/or criminal and civil liabilities.
Existing or future regulations could require us to procure expensive pollution abatement or remediation
equipment; to modify product designs; or to incur other expenses to comply with environmental regulations. Any
failure to adequately control the use, disposal or storage, or discharge of hazardous substances could expose us to
future liabilities that could have a material adverse effect on our business. We believe we are in material
compliance with applicable environmental requirements and do not expect those requirements to result in
material expenditures in the foreseeable future.
Environmental laws are complex, change frequently and have tended to become more stringent over time.
For example, the European Union and China are two among a growing number of jurisdictions that have enacted
in recent years restrictions on the use of lead, among other chemicals, in electronic products. These regulations
affect semiconductor packaging. Other regulatory requirements potentially affecting our manufacturing processes
and the design and marketing of our products are in development throughout the world. We have management
systems in place to identify and ensure compliance with such requirements and have budgeted for foreseeable
associated expenditures. However, we cannot assure you that future environmental legal requirements will not
become more stringent or costly in the future. Therefore, we cannot assure you that our costs of complying with
current and future environmental and health and safety laws, and our liabilities arising from past and future
releases of, or exposure to, hazardous substances will not have a material adverse effect on us.
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