AMD 2013 Annual Report Download - page 43

We lease our main facility with respect to our graphics and visual solutions and chipset products, which is
located in Markham, Ontario, Canada. This facility consists of approximately 240,000 square feet of office and
research and development space. We own and operate one additional facility in Markham, Ontario which consists
of approximately 123,000 square feet, including office space and approximately 30,000 square feet of warehouse
space. We also currently own and operate two facilities in Malaysia and China comprising an aggregate of
approximately 811,000 square feet, including office space and approximately 250,000 square feet of assembly,
test, mark and packaging facilities, which are described in further detail in the section entitled “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 422,000 square feet of land in Suzhou, China for our assembly test, mark and packaging facilities.
As of December 28, 2013, we also leased approximately 2.5 million square feet of space for engineering,
manufacturing, warehouse and administrative use, including our headquarters in Sunnyvale, California, our
principal administrative facilities in Austin, Texas, and 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 2025, although some of these leases include optional renewals. The lease
for our headquarters in Sunnyvale, California expires in December 2018, and provides for two successive 10-year
optional renewals. The lease for our principal administrative facilities in Austin, Texas expires in March 2025,
and provides for one 10-year optional renewal.
We also have approximately 165,000 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 2018. 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
Securities Class Action
On January 15, 2014, a class action lawsuit captioned Hatamian v. AMD, et al., C.A. No. 3:14-cv-00226 was
filed against us in the United States District Court for the Northern District of California. The complaint purports
to assert claims against AMD and certain individual officers for alleged violations of Section 10(b) of the
Securities Exchange Act of 1934, as amended (the Exchange Act), and Rule 10b-5 of the Exchange Act. The
plaintiff seeks to represent a proposed class of all persons who purchased or otherwise acquired our common
stock during the period October 27, 2011 through October 28, 2012. The complaint seeks damages allegedly
caused by alleged materially misleading statements and/or material omissions by us and the individual officers
regarding our 32nm technology and “Llano” product, which statements and omissions, the plaintiffs claim,
allegedly operated to inflate artificially the price paid for our common stock during the period. The complaint
seeks unspecified compensatory damages, attorneys’ fees and costs. Based upon information presently known to
management, we believe that the potential liability, if any, will not have a material adverse effect on our financial
condition, cash flows or results of operations.
Environmental Matters
We are named as a responsible party on Superfund clean-up orders for three sites in Sunnyvale, California
that are on the National Priorities List. Since 1981, we have discovered hazardous material releases to the
groundwater from former underground tanks and proceeded to investigate and conduct remediation at these three
sites. The chemicals released into the groundwater were commonly used in the semiconductor industry in the
United States in the wafer fabrication process prior to 1979.
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