AMD 2015 Annual Report Download - page 64

(2) We have purchase obligations for goods and services where payments are based, in part, on the volume or
type of services we acquire. In those cases, we only included the minimum volume of purchase obligations
in the table above. Purchase orders for goods and services that are cancelable upon notice and without
significant penalties are not included in the amounts above. In addition, we have included in the table above
obligations for software technology and licenses where payments are fixed and non-cancelable.
(3) Includes our purchase obligations to GF for wafer manufacturing and research and development activities
and reflects the impact of wafer receipts under the fifth amendment to the WSA delayed into fiscal 2016. As
of December 26, 2015, purchase obligations for fiscal 2016 were approximately $248 million, of which
approximately $185 million, consisting of wafers and research and development activities, were received by
December 31, 2015. We generally negotiate our purchase commitments with GF on an annual basis and as
such we cannot meaningfully quantify or estimate our future purchase obligations to GF. We are currently in
the process of negotiating a sixth amendment to the WSA, and we expect that our future purchases from GF
will continue to be material.
(4) Total amount excludes contractual obligations already recorded on our consolidated balance sheets except
for debt obligations and other long-term liabilities.
6.00% Convertible Senior Notes due 2015
On April 27, 2007, we issued $2.2 billion aggregate principal amount of our 6.00% Notes. In 2015, we paid
off the remaining $42 million in aggregate principal amount of our 6.00% Notes in cash. As of December 26,
2015, we did not have any 6.00% Notes outstanding.
6.75% Senior Notes Due 2019
On February 26, 2014, we issued $600 million of our 6.75% Notes. Our 6.75% Notes are our general
unsecured senior obligations. Interest is payable on March 1 and September 1 of each year beginning
September 1, 2014 until the maturity date of March 1, 2019. Our 6.75% Notes are governed by the terms of an
indenture (the 6.75% Indenture) dated February 26, 2014 between us and Wells Fargo Bank, N.A., as trustee.
At any time before March 1, 2019, we may redeem some or all of our 6.75% Notes at a price equal to 100%
of the principal amount, plus accrued and unpaid interest and a “make whole” premium (as set forth in the 6.75%
Indenture).
As of December 26, 2015, the outstanding aggregate principal amount of our 6.75% Notes was $600 million.
See Note 10 of “Notes to Consolidated Financial Statements” below, for additional information regarding
our 6.75% Notes.
7.75% Senior Notes Due 2020
On August 4, 2010, we issued $500 million of our 7.75% Notes. Our 7.75% Notes are our general unsecured
senior obligations. Interest is payable on February 1 and August 1 of each year beginning February 1, 2011 until
the maturity date of August 1, 2020. Our 7.75% Notes are governed by the terms of an indenture dated August 4,
2010 between us and Wells Fargo Bank, N.A., as trustee.
From August 1, 2015, we may redeem our 7.75% Notes for cash at the following specified prices plus
accrued and unpaid interest:
Period
Price as
Percentage of
Principal Amount
Beginning on August 1, 2015 through July 31, 2016 .................. 103.875%
Beginning on August 1, 2016 through July 31, 2017 .................. 102.583%
Beginning on August 1, 2017 through July 31, 2018 .................. 101.292%
On August 1, 2018 and thereafter ................................. 100.000%
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