AMD 2010 Annual Report Download - page 131

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conjunction with the plans initiated during 2008 primarily represented severance and costs related to the
continuation of certain employee benefits, contract or program termination costs, asset impairments and exit
costs for facility consolidations and closures. The remaining liability for these plans is related to lease obligations
that will be paid through 2012. The Company anticipates cash payments related to the remaining liability for the
2008 restructuring plans to be $3.5 million in 2011 and $3.5 million in 2012. In December 2002, the Company
initiated a restructuring plan. As of December 25, 2010, the 2008 and 2002 plans were substantially completed.
The following table provides a summary of each major type of cost associated with the 2008 and 2002
restructuring plans through December 25, 2010:
2010 2009 2008
(In millions)
Severance and benefits ..................................... $ (4) $25 $53
Contract or program terminations ............................ — 12 13
Asset impairments ........................................ — 8 18
Facility consolidations and closures ........................... — 20 6
Total ................................................... $ (4) $65 $90
NOTE 19: 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. Accordingly, the Company 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
of $135 million. As a result of the decisions and transactions described above, pursuant to applicable accounting
guidance, the operating results of the Digital Television business unit are presented as discontinued operations in
the consolidated statements of operations for the applicable periods presented. Cash flows from discontinued
operations were not material and were combined with cash flows from continuing operations within the
consolidated statement of cash flows categories.
The results from discontinued operations for the Company’s former Digital Television business unit were as
follows:
2009 2008
(In millions)
Net revenue .................................................. $— $ 73
Expenses .................................................... (3) (147)
Impairment of goodwill and acquired intangible assets ................ — (609)
Restructuring charges ........................................... — (1)
Loss from discontinued operations ................................ $ (3) $(684)
123