AMD 2009 Annual Report Download - page 135

The following table provides a roll forward of the liability associated with the 2002 Restructuring Plan:
Lease obligations
(In millions)
Balance December 27, 2008 ..................................... $32
Charges ................................................. 5
Cash payments ............................................ (17)
Balance December 26, 2009 ..................................... $20
NOTE 19: 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 million in accordance with applicable accounting rules
and has not recorded any potential insurance recoveries in determining the estimated costs of the cleanup. The
progress of future remediation efforts cannot be predicted with certainty and these costs may change. The
Company believes that the potential liability, if any, in excess of amounts already accrued, will not have a
material adverse effect on its financial condition or results of operations.
Other Matters
The Company is a defendant or plaintiff in various actions that arose in the normal course of business. In the
opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the
Company’s financial condition or results of operations.
NOTE 20: Discontinued Operations
In 2008, the Company evaluated the viability of its non-core businesses and determined that its Digital
Television business unit was not directly aligned with its core strategy of computing and graphics market
opportunities and decided to divest this business unit.
The Company performed an interim impairment test of goodwill and acquired intangible assets during 2008
and concluded that the carrying amounts of goodwill and certain acquisition-related intangible assets associated
with the Digital Television business unit was impaired and recorded an impairment charge of $473 million.
During the third quarter of 2008, the Company entered into an agreement with Broadcom Corporation to sell
the Digital Television business unit for $141.5 million and the transaction was completed on October 27, 2008.
Based on the final terms of the sale transaction, the Company recorded an additional goodwill impairment charge
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