AMD 2008 Annual Report Download - page 85

other comprehensive income, a component of our stockholders’ equity. If we determine that such decline in fair
value is other than temporary, we would record further impairment charge in our consolidated statements of
operations, which could materially adversely impact our results of operations.
Contractual Obligations
The following table summarizes our principal contractual cash obligations at December 27, 2008, and is
supplemented by the discussion following the table:
Payment due by period
Total
Fiscal
2009
Fiscal
2010
Fiscal
2011
Fiscal
2012
Fiscal
2013
Fiscal 2014
and beyond
(In millions)
5.75% Senior Notes due 2012 .......... $1,500 $ — $ — $ — $1,500 $ — $ —
6.00% Senior Notes due 2015 .......... 2,140 — — — — — 2,140
Fab 36 Term Loan ................... 705 246 290 169 — — —
Obligations to repurchase Fab 36 silent
partner interests(1) ................. 28 28 — — — — —
7.75% Senior Notes Due 2012 ......... 390 — — — 390 — —
Other long-term liabilities ............. 38 — 23 9 4 2 —
Aggregate interest obligation(2) ......... 1,462 297 281 271 240 154 219
Obligations under capital leases(3) ....... 398 40 41 40 41 41 195
Operating leases ..................... 267 57 58 32 25 21 74
Unconditional purchase
commitments(4) ................... 2,015 413 272 212 219 226 673
Total contractual obligations ........... $8,943 $1,081 $ 964 $ 734 $2,419 $ 444 $3,301
(1) Represents the amount of silent partnership contributions that our subsidiaries are required to repurchase
from Leipziger Messe 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 on our outstanding debt obligations, excluding capital
lease obligations, including the guaranteed rate of return on Leipziger Messe’s silent partnership
contributions, which is based on our assumptions regarding wafer output.
(3) Includes principal and imputed 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.
5.75% Convertible Senior Notes due 2012
On August 14, 2007, we issued $1.5 billion aggregate principal amount of 5.75% Convertible Senior Notes
due 2012. The 5.75% Notes bear interest at 5.75% per annum. Interest is payable in arrears on February 15 and
August 15 of each year beginning February 15, 2008 until the maturity date of August 15, 2012. The terms of the
5.75% Notes are governed by an Indenture (the 5.75% Indenture), dated as of August 14, 2007, by and between
us and Wells Fargo Bank, National Association, as Trustee.
The 5.75% Notes will be convertible, in whole or in part, at any time prior to the close of business on the
business day immediately preceding the maturity date of the 5.75% Notes, into shares of our common stock
based on an initial conversion rate of 49.6771 shares of common stock per $1,000 principal amount of the 5.75%
Notes, which is equivalent to an initial conversion price of approximately $20.13 per share. This initial
conversion price represents a premium of 50% relative to the last reported sale price of our common stock on
August 8, 2007 (the trading date preceding the date of pricing of the 5.75% Notes) of $13.42 per share. This
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