AMD 2012 Annual Report Download - page 117

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NOTE 17: Restructuring
2012 Restructuring Plan
In the fourth quarter of 2012, the Company implemented a restructuring plan designed to improve the
Company’s cost structure and to strengthen its competitiveness in core growth areas. The plan primarily involves
a workforce reduction of approximately 14% as well as asset impairments and facility consolidations. The
Company recorded restructuring expense in the fourth quarter of 2012 of approximately $90 million.
Substantially all of the restructuring expense is related to severance. Of the total restructuring expense,
approximately $46 million related to cash payments in the fourth fiscal quarter of 2012, with the remaining $41
million related to anticipated cash payments in 2013. The non-cash portion of the restructuring expense included
approximately $4 million of asset impairments.
2011 Restructuring Plan
In the fourth quarter of 2011, the Company initiated a restructuring plan to strengthen its competitive
positioning, implement a more competitive cost structure and conduct a workforce rebalancing to better address
faster growing market segments. The plan included a reduction of the Company’s global workforce by 13% and
contract and program terminations. The Company recorded a $100 million restructuring charge in the fourth
quarter of 2011, which consisted of $54 million for severance and costs related to the continuation of certain
employee benefits, $45 million for contract or program termination costs and $1 million for asset impairments. In
2012, the Company recorded an additional $8 million for severance and costs related to the continuation of
certain employee benefits. The plan was substantially completed as of the end of the first quarter of 2012.
The following table provides a summary of the activity related to the 2012 and 2011 restructuring plans and
the related liabilities recorded in “Other current liabilities” on the Company’s consolidated balance sheets
remaining as of December 29, 2012:
Severance
and related
benefits
Other exit
related
costs Total
(In millions)
Balance at December 25, 2010 ...................... $— $— $—
Charges .................................... 54 46 100
Cash payments .............................. (32) — (32)
Non-cash charges ............................ — (1) (1)
Balance at December 31, 2011 ...................... 22 45 67
Charges .................................... 95 5 100
Cash payments .............................. (76) (29) (105)
Non-cash charges ............................ — (4) (4)
Balance at December 29, 2012 ...................... $ 41 $ 17 $ 58
2008 Restructuring Plan
In the fourth quarter of 2008, the Company initiated a restructuring plan to reduce its cost structure, which
was substantially completed in 2009. In the fourth quarter of 2011, the Company reversed approximately $2
million of costs associated with the 2008 restructuring plan because the actual restoration costs for vacated
facilities were lower than previously estimated. In 2010, the Company reversed approximately $4 million of
costs associated with the 2008 restructuring plan because severance and costs related to the continuation of
certain employee benefits were lower than previously estimated.
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