AMD 2010 Annual Report Download - page 41

Our main facility with respect to our graphics and chipset products is located in Markham, Ontario, Canada.
This facility consists of approximately 240,000 square feet of office and research and development space. We
occupy two other facilities in Markham, Ontario that comprise over 215,000 square feet, including approximately
65,000 square-feet of manufacturing and warehouse space. We also currently own and operate three
microprocessor assembly and test facilities comprising an aggregate of 465,000 square feet. Our current
microprocessor assembly and test facilities are located in Malaysia, Singapore and China and are described in
further detail in the “Assembly, Test, Mark and Packaging Facilities,” above.
In some cases, we lease all or a portion of the land on which our facilities are located. We lease
approximately 218,000 square feet of land in Singapore and 422,000 square feet of land in Suzhou, China for our
microprocessor assembly and test facilities.
As of December 25, 2010, we also leased approximately 3.2 million square feet of space for engineering,
manufacturing, warehouse and administrative use, including a number of smaller regional sales offices located in
commercial centers near customers, principally in the United States, Latin America, Europe and Asia. These
leases expire at varying dates through 2018.
We also have approximately 310,000 square feet of building space that is currently vacant. We continue to
have lease obligations with respect to this space that expire at various dates through 2012. We are actively
marketing this space for sublease.
We currently do not anticipate difficulty in either retaining occupancy of any of our facilities through lease
renewals prior to expiration or through month-to-month occupancy, or replacing them with equivalent facilities.
We believe that our existing facilities are suitable and adequate for our present purposes, and that, except as
discussed above, the productive capacity of such facilities is substantially being utilized or we have plans to
utilize it.
ITEM 3. LEGAL PROCEEDINGS
In addition to ordinary routine litigation incidental to the business, AMD or its indirectly wholly-owned
subsidiary, ATI, is party to the following material legal proceedings. The outcome of any litigation is uncertain,
and, should any of the actions or proceedings where we are a defendant be successful, we may be subject to
significant damages awards which could have a material adverse effect on our financial condition.
AMD v. Samsung Electronics Co. et al.
On February 19, 2008, AMD and ATI filed a complaint against Samsung Electronics Co., Ltd. (Samsung)
and related Samsung entities alleging infringement of six AMD patents. The complaint was amended in May
2008 to add a seventh patent and also to add two additional Samsung entities as defendants to the suit. The case
was filed in U.S. District Court, Northern District of California. The AMD patents generally relate to
semiconductors, semiconductor memory, and related products. AMD sought damages and injunctive
relief. Samsung filed an answer and counterclaims, alleging infringement by AMD and/or ATI of six Samsung
patents. The Samsung patents generally relate to semiconductor fabrication and design. Samsung sought damages
and injunctive relief.
On December 22, 2010, we entered into a Patent License and Settlement Agreement with Samsung.
Pursuant to this agreement, all claims between the parties were dismissed with prejudice, and Samsung agreed to
pay us $283 million less any withholding taxes not to exceed a maximum rate of 16.5%. We received the first
payment of $119 million (which represents $143 million less withholding taxes) in December 2010. The
remaining amount of $117 million (which represents $140 million less withholding taxes) will be paid in two
equal installments by May 31, 2011 and November 30, 2011.
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