AMD 2015 Annual Report Download - page 96

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During the 12 months beginning December 27, 2015, the Company does not expect to reduce its
unrecognized tax benefits. The Company does not believe it is reasonably possible that other unrecognized tax
benefits will materially change in the next 12 months. However, the resolutions and/or closure of open audits are
highly uncertain.
As of December 27, 2014, the Canada Revenue Agency, or CRA, had completed its audit of ATI for the
years 2005 through 2010 and issued its final Notice of Assessment, which the Company has reviewed and agreed
to. As of December 26, 2015, the Italian tax authorities had concluded their audit of the Company’s subsidiaries’
activities in Italy for the years 2003 through 2013. The Company has agreed to a settlement of $11 million in
taxes and penalties and $2 million in interest. The Company and its subsidiaries have several foreign, foreign
provincial, and U.S. state audits in process at any one point in time. The Company has provided for uncertain tax
positions that require a liability under the adopted method to account for uncertainty in income taxes. The
Company has not recognized any current or long-term deferred tax assets under a valuation allowance as a result
of the application of uncertainty in income taxes in ASC 740 for unrecognized tax benefits as of December 26,
2015.
NOTE 10: Debt and Other Obligations
Total Debt
The Company’s total debt as of December 26, 2015 and December 27, 2014 consisted of:
December 26,
2015
December 27,
2014
(In millions)
6.00% Notes, net of discount ................................... $ — $ 42
6.75% Notes ................................................ 600 600
6.75% Notes, interest rate swap ................................. 7 3
7.75% Notes ................................................ 450 450
7.50% Notes ................................................ 475 475
7.00% Notes ................................................ 500 500
Secured Revolving Line of Credit ............................... 230 130
Capital lease obligations ...................................... — 12
Total debt .................................................. 2,262 2,212
Less: current portion ......................................... 230 177
Total debt, less current portion ................................. $ 2,032 $ 2,035
6.00% Convertible Senior Notes due 2015
On April 27, 2007, the Company issued $2.2 billion aggregate principal amount of the 6.00% Convertible
Senior Notes (6.00% Notes). In 2015, the Company paid off the remaining $42 million in aggregate principal
amount of its 6.00% Notes in cash. As of December 26, 2015, the Company did not have any 6.00% Notes
outstanding.
6.75% Senior Notes Due 2019
On February 26, 2014, the Company issued $600 million of its 6.75% Notes. The 6.75% Notes are general
unsecured senior obligations of the Company. Interest is payable on March 1 and September 1 of each year
beginning September 1, 2014 until the maturity date of March 1, 2019. The 6.75% Notes are governed by the
terms of an indenture (the 6.75% Indenture) dated February 26, 2014 between the Company and Wells Fargo
Bank, N.A., as trustee.
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