AMD 2010 Annual Report Download - page 71

allowances from the Federal Republic of Germany and the State of Saxony of $161 million for our former
Dresden manufacturing facilities. These amounts were partially offset by $166 million of payments on certain
debt and cash obligations, consisting of $20 million for the repurchase of $60 million aggregate principal amount
of our 6.00% Notes, $38 million for the exercise of our call option to repurchase the silent partnership
contributions in AMD Fab 36 KG held by Fab 36 Beteiligungs GmbH & Co. KG, $25 million for the mandatory
repurchase of a portion of the silent partnership contributions in AMD Fab 36 KG held by Leipziger Messe and
$19 million in payments for the guaranteed return on the unaffiliated limited partners’ limited partnership
contributions. During 2008, we did not realize any excess tax benefit related to stock-based compensation.
Therefore, we did not record any related financing cash flows.
Contractual Obligations
The following table summarizes our consolidated principal contractual cash obligations, as of December 25,
2010, and is supplemented by the discussion following the table:
Payment due by period
Total 2011 2012 2013 2014 2015
2016
and beyond
(In millions)
5.75% Convertible Senior Notes due
2012 ............................. $ 485 $— $485 $— $— $— $ —
6.00% Convertible Senior Notes due
2015(1) ........................... 780 — — — — 780 —
8.125% Senior Notes due 2017(1) ........ 500 — — — — — 500
7.75% Senior Notes due 2020 ........... 500 — — — — — 500
Other long-term liabilities .............. 46 — 28 16 1 1 —
Aggregate interest obligation(2) .......... 909 154 145 126 126 99 259
Capital lease obligations(3) .............. 36566 6 6 7
Operating leases ...................... 176 35 30 25 24 20 42
Purchase obligations(4)(5) ............... 419 294 61 34 18 12 —
Total contractual obligations(6) .......... $3,851 $488 $755 $207 $175 $918 $1,308
(1) Represents aggregate par value of the notes, without the effect of associated discounts.
(2) Represents estimated aggregate interest obligations for our outstanding debt obligations that are payable in
cash, excluding capital lease obligations. Also excludes non-cash amortization of debt discounts on the
8.125% Notes and the 6.00% Notes.
(3) Includes principal and imputed interest.
(4) We have purchase obligations for goods and services where payments are based, in part, on the volume or
type of services we require. In those cases, we only included the minimum volume of purchase obligations
in the table above. Also, purchase orders for goods and services that are cancelable upon notice and without
significant penalties are not included in the amounts above.
(5) This amount does not include estimates of future purchase obligations to GF under the Wafer Supply
Agreement, which we expect will continue to be material. See “Purchase Obligations,” below.
(6) This amount does not include the amounts we receive in connection with our accounts receivable financing
arrangement with the IBM Parties. See “Receivable financing arrangement,” below.
5.75% Convertible Senior Notes due 2012
On August 14, 2007, we issued $1.5 billion aggregate principal amount of 5.75% Convertible Senior Notes
due 2012 (the 5.75% Notes). The 5.75% Notes are our general unsecured senior obligations. Interest is payable in
arrears on February 15 and August 15 of each year beginning February 15, 2008 until the maturity date of
August 15, 2012. The terms of the 5.75% Notes are governed by an Indenture (the 5.75% Indenture), dated as of
August 14, 2007, by and between us and Wells Fargo Bank, National Association, as Trustee.
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