AMD 2014 Annual Report Download - page 27

thereby adversely impacting our ability to manufacture our products. In addition, uncertain economic conditions
may make it more difficult for us to raise funds through borrowings or private or public sales of debt or equity
securities.
We may not be able to generate sufficient cash to service our debt obligations or meet our working capital
requirements.
Our ability to make payments on and to refinance our debt will depend on our financial and operating
performance, which may fluctuate significantly from quarter to quarter, and is subject to prevailing economic
conditions and financial, business and other factors, many of which are beyond our control. We cannot assure
you that we will be able to generate cash flow or that we will be able to borrow funds, including under our senior
secured asset based line of credit for a principal amount up to $500 million (our Secured Revolving Line of
Credit, as amended), in amounts sufficient to enable us to service our debt or to meet our working capital
requirements. If we are not able to generate sufficient cash flow from operations or to borrow sufficient funds to
service our debt, we may be required to sell assets or equity, reduce expenditures, refinance all or a portion of our
existing debt or obtain additional financing. We cannot assure you that we will be able to refinance our debt, sell
assets or equity, borrow funds under our Secured Revolving Line of Credit or borrow more funds on terms
acceptable to us, if at all.
We have a substantial amount of indebtedness which could adversely affect our financial position and prevent
us from implementing our strategy or fulfilling our contractual obligations.
Our total debt as of December 27, 2014 was $2.2 billion. Our substantial indebtedness may:
• make it difficult for us to satisfy our financial obligations, including making scheduled principal and
interest payments;
• limit our ability to borrow additional funds for working capital, capital expenditures, acquisitions and
general corporate and other purposes;
• limit our ability to use our cash flow or obtain additional financing for future working capital, capital
expenditures, acquisitions or other general corporate purposes;
• require us to use a substantial portion of our cash flow from operations to make debt service payments;
• place us at a competitive disadvantage compared to our less leveraged competitors; and
• increase our vulnerability to the impact of adverse economic and industry conditions.
We enter into interest rate swap agreements from time to time to manage our exposure to interest rate risk.
These swap agreements involve risks, such as the risk that counterparties may fail to honor their obligations
under these arrangements, the risk that these arrangements may not be effective in reducing our exposure to
changes in interest rates and the risk that our exposure to interest rates may increase if interest rates increase.
The agreements governing our notes and our Secured Revolving Line of Credit impose restrictions on us that
may adversely affect our ability to operate our business.
The indentures governing our 7.75% Senior Notes due 2020 (7.75% Notes), 7.50% Senior Notes due 2022
(7.50% Notes), 7.00% Senior Notes due 2024 (7.00% Notes) and 6.75% Senior Notes due 2019 (6.75% Notes)
contain various covenants which limit our ability to, among other things:
• incur additional indebtedness;
• pay dividends and make other restricted payments;
• make certain investments, including investments in our unrestricted subsidiaries;
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