AMD 2010 Annual Report Download - page 138

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(1) On November 11, 2009, the Company entered into a settlement agreement with Intel Corp. Pursuant to the
settlement agreement, Intel paid the Company $1,250 million and the Company recorded a $1,242 million
gain net of certain expenses in 2009. On December 22, 2010, the Company entered into settlement
agreement with Samsung. Pursuant to the settlement agreement, Samsung agreed to pay the Company $283
million, net of withholding taxes. The Company recorded this amount as a gain in 2010.
(2) In the first, second and third quarters of 2009, the Company recorded gains of $108 million, $6 million and
$66 million, respectively, related to the repurchase of its 5.75% and 6.00% Notes. In the first quarter of
2009, the Company recorded impairment charges of $3 million related to its investment in Spansion.
(3) The tax provision in the first quarter of 2009 is primarily due to a one-time loss of deferred tax assets for
German net operating loss carryovers upon the transfer of its ownership interest in its Dresden subsidiaries
to GF. The tax provision in the fourth quarter of 2010 is primarily due to withholding taxes that the
Company paid in connection with the settlement agreement with Samsung.
(4) As of beginning of 2010, the Company deconsolidated GF and began to account for its ownership interest in
GF under the equity method of accounting. The Company recorded a one-time, non-cash gain of $325
million on deconsolidation of GF and a loss of $462 million for the Company’s share of GF’s operating
results in 2010.
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