AMD 1997 Annual Report Download - page 36

Download and view the complete annual report

Please find page 36 of the 1997 AMD annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 213

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200
  • 201
  • 202
  • 203
  • 204
  • 205
  • 206
  • 207
  • 208
  • 209
  • 210
  • 211
  • 212
  • 213

The table below presents principal (or notional) amounts and related
weighted-average interest rates by year of maturity for the Company's
investment portfolio and debt obligations.
FAIR
1998 1999 2000 2001 2002 THEREAFTER TOTAL VALUE
-------- -------- ------- ---- ---- ---------- -------- --------
Assets
Cash Equivalents
Fixed rate............. $ 37,761 -- -- -- -- -- $ 37,761 $ 37,696
Average rate........... 5.64% -- -- -- -- -- 5.64% --
Short-term Investments
Fixed rate............. $164,538 -- -- -- -- -- $164,538 $165,174
Average rate........... 5.71% -- -- -- -- -- 5.71% --
Variable rate.......... $ 61,200 -- -- -- -- -- $ 61,200 $ 61,200
Average rate........... 6.04% -- -- -- -- -- 6.04% --
Long-term Investments
Equity investments..... -- $ 6,161 -- -- -- -- $ 6,161 $ 7,428
Fixed rate............. -- $ 1,997 -- -- -- -- $ 1,997 $ 2,092
Average rate........... -- 5.88% -- -- -- -- 5.88% --
Total Investments
Securities............. $263,499 $ 8,158 -- -- -- -- $271,657 $273,590
Average rate........... 5.80% 5.88% -- -- -- -- 5.80% --
Long-term Debt
Fixed rate............. $ 5,926 $ 1,370 $ 1,537 $167 $184 $400,872 $410,056 $440,554
Average rate........... 7.15% 7.18% 7.17% 9.88% 9.88% 10.98% 10.91% --
Variable rate.......... $ 31,250 $125,000 $93,750 -- -- -- $250,000 $221,548
Average rate........... 7.56% 7.56% 7.56% -- -- -- 7.56% --
FOREIGN EXCHANGE RISK
From time to time, the Company enters into foreign exchange forward and
option contracts to reduce its exposure to currency fluctuations on its net
monetary assets position in its foreign subsidiaries, liabilities for products
purchased from FASL, fixed asset purchase commitments and subordinated loan
obligations to AMD Saxony. The objective of these contracts is to minimize the
impact of foreign currency exchange rate movements on the Company's operating
results and on the cost of capital asset acquisitions. The Company's
accounting policy for these instruments is based on the Company's designation
of such instruments as hedging transactions. The Company does not use
derivative financial instruments for speculative or trading purposes. The
Company had $49 million (notional amount) of short-term foreign exchange
forward contracts denominated in yen, deutsche mark, lira, French franc, pound
sterling and Dutch guilder. The Company also had $150 million in call options
outstanding to hedge its future loan or equity obligations to AMD Saxony.
Gains and losses related to these instruments at December 28, 1997 were not
material. The Company does not anticipate any material adverse effect on its
consolidated financial position, results of operations, or cash flows
resulting from the use of these instruments in the future. There can be no
assurance that these strategies will be effective or that transaction losses
can be minimized or forecasted accurately.
32
Source: ADVANCED MICRO DEVIC, 10-K405, March 03, 1998