AMD 2012 Annual Report Download - page 70

We may elect to purchase or otherwise retire the balance of the 6.00% Notes, 8.125% Notes, 7.75% Notes
and 7.50% Notes with cash, stock or other assets from time to time in open market or privately negotiated
transactions, either directly or through intermediaries, or by tender offer when we believe the market conditions
are favorable to do so.
The agreements governing our 6.00% Notes, 8.125% Notes, 7.75% Notes and 7.50% Notes contain
cross-default provisions whereby a default under one agreement would likely result in cross defaults under
agreements covering other borrowings. The occurrence of a default under any of these borrowing arrangements
would permit the applicable note holders to declare all amounts outstanding under those borrowing arrangements
to be immediately due and payable.
Other Long-Term Liabilities
Other long-term liabilities in the contractual obligations table above include primarily $9 million of
payments due under certain software and technology licenses that will be paid through 2014. Other long-term
liabilities in the contractual obligations table above exclude amounts recorded on our consolidated balance sheet
that do not require us to make cash payments, which, as of December 29, 2012, primarily consisted of $13
million of deferred gains resulting from the sale and leaseback of certain of our facilities. Also excluded from
other long-term liabilities in the contractual obligations table above was $2 million of non-current unrecognized
tax benefits, which are included in the caption “Other long-term liabilities” on our consolidated balance sheet at
December 29, 2012. This amount represents a potential cash payment that could be payable by us upon
settlement with a taxing authority. We have not included this amount in the contractual obligations table above
because we cannot make a reasonably reliable estimate regarding the timing of any settlement with the taxing
authority, if any.
Capital Lease Obligations
As of December 29, 2012, we had aggregate outstanding capital lease obligations of $23 million for one of
our facilities in Canada, which is payable in monthly installments through 2017.
Operating Leases
We lease certain of our facilities and in some jurisdictions. We lease the land on which these facilities are
built, under non-cancelable lease agreements that expire at various dates through 2022. We lease certain
manufacturing and office equipment for terms ranging from 1 to 5 years. Total future non-cancelable lease
obligations as of December 29, 2012 were $160 million.
Purchase Obligations
Our purchase obligations primarily include our obligations to purchase wafers and substrates from third
parties, excluding our wafer purchase commitments to GF under the WSA. As of December 29, 2012, total
non-cancelable purchase obligations were $299 million.
Obligations to GF
Obligations to GF represents all our contractual obligations to GF, including approximately $1.15 billion of
our wafer purchase commitments for 2013 and $250 million for the first quarter of 2014 and other payables
under the WSA as described below.
Under the second amendment to the WSA, GF granted us certain rights to contract with another wafer
foundry supplier with respect to specified products for a specified period. In consideration for these rights, we
agreed to pay GF $425 million and transfer to GF all of the capital stock of GF that we owned, directly or
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