AMD 2009 Annual Report Download - page 131

Shares Reserved for Issuance. The Company had a total of approximately 17.5 million shares of common
stock as of December 26, 2009 that were available for future grants under the 2004 Plan and 64.2 million shares
reserved for issuance upon the exercise of outstanding stock options or the vesting of unvested restricted stock
awards (including restricted stock units and awards) under the 2004 Plan, the Company’s prior equity
compensation plans and the assumed ATI plans. In addition, the Company had approximately 4.4 million shares
reserved under the ESPP, which was suspended indefinitely in December 2008.
NOTE 16: Other Employee Benefit Plans
Corporate Bonus Plan. All full-time employees are eligible for this program with the exception of those
participating in the sales incentive plan. The plan allows employees to share in the Company’s financial success
based on company and individual performance. There was no payout for 2009, 2008 and 2007.
Retirement Savings Plan. The Company had a retirement savings plan, commonly known as a 401(k) plan
that allowed participating employees in the United States to contribute up to 100 percent of their pre-tax salary
subject to Internal Revenue Service limits. The Company matched employee contributions one to one for the first
three percent of participants’ contributions and 50 cents on each dollar of additional three percent of participants’
contributions, to a maximum of 4.5 percent of eligible compensation. The Company’s contributions to the 401(k)
plan were approximately $5 million in 2009, $15 million in 2008 and 2007.
In 2009, as part of its cost cutting efforts, the Company temporarily suspended the matching contributions
for its 401(k) plan, effective February 2, 2009. In January 2010, the Company reinstated the 401(k) company
match in a phased process, resulting in a 50 percent funding model for 2010.
NOTE 17: Commitments and Guarantees
As of December 26, 2009, total noncancelable long-term operating lease obligations, including those for
facilities vacated in connection with restructuring activities, were as follows for each of the next five years and
beyond:
Operating
leases
(In millions)
2010 ........................................................... $ 59
2011 ........................................................... 31
2012 ........................................................... 26
2013 ........................................................... 23
2014 ........................................................... 18
2015 and beyond .................................................. 58
$215
The Company leases certain of its facilities, as well as the underlying land in certain jurisdictions, under
agreements accounted for as operating leases that expire at various dates through 2018. The Company also leases
certain of its manufacturing and office equipment under agreements accounted for as operating leases for terms
ranging from 1 to 5 years. Rent expense was approximately $55 million, $81 million and $83 million in 2009,
2008 and 2007.
In December 1998, the Company arranged for the sale of its marketing, general and administrative facility
in Sunnyvale, California and leased it back for a period of 20 years. The Company recorded a deferred gain of
$37 million on the sale and is amortizing it over the life of the lease. The lease expires in December 2018. At the
beginning of the fourth lease year and every three years thereafter, the rent will be adjusted by 200 percent of the
cumulative increase in the consumer price index over the prior three-year period, up to a maximum of 6.9
percent. Certain other operating leases contain provisions for escalating lease payments subject to changes in the
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