AMD 2003 Annual Report Download - page 61

Table of Contents
The following table presents the cost basis, fair value and related weighted-average interest rates by year of maturity for our investment portfolio and debt
obligations as of December 28, 2003 and comparable fair values as of December 29, 2002:
2004 2005 2006 2007 2008 Thereafter Total
2003
Fair value
2002
Fair value
(Dollars in Thousands)
Investment Portfolio
Cash equivalents:
Fixed rate amounts $ 256,558 $ — $ — $ — $ — $ — $ 256,558 $ 256,515 $ 14,276
Weighted-average rate 1.05% — — — — —
Variable rate amounts $ 575,614 — — — — — $ 575,614 $ 576,204 $ 109,076
Weighted-average rate 1.01% — — — — —
Short-term investments:
Fixed rate amounts $ 18,331 $ 8,387 $ — $ — $ — $ — $ 26,718 $ 26,703 $ 336,494
Weighted-average rate 2.41% 2.38% — — — —
Variable rate amounts $ 100,774 — — — — — $ 100,774 $ 100,860 $ 272,463
Weighted-average rate 1.30% — — — — —
Long-term investments:
Equity investments $ — $ — $ — $ — $ — $ 7,765 $ 7,765 $ 16,845 $ 7,885
Fixed rate amounts $ 12,100 — — — — — $ 12,100 $ 12,163 $ 12,554
Weighted-average rate 1.30% — — — — —
Total Investment Portfolio $ 963,377 $ 8,387 $ — $ — $ — $ 7,765 $ 979,529 $ 989,290 $ 752,748
Debt Obligations
Debt—fixed rate amounts $ — $ — $ — $ 402,500 $ — $ 500,000 $ 902,500 $ 902,500 $ 902,500
Weighted-average rate — — — 4.50% — 4.75% 4.64% 4.64% —
Debt—variable rate amounts $ 109,586 $ 418,040 $ 383,270 $ 33,586 $ — $ — $ 944,482 $ 944,482 $ 697,234
Weighted-average rate 3.53% 4.90% 4.86% 0.98% — — 4.60% 4.60% —
Notes payable to banks $ — $ — $ — $ — $ — $ — $ — $ — $ 913
Weighted-average rate — — — — — — — — —
Capital leases $ 83,680 $ 84,022 $ 74,228 $ 3,899 $ 129 $ — $ 245,958 $ 244,641 $ 37,229
Weighted-average rate 5.40% 5.15% 4.89% 9.59% 3.90% — 5.50% 5.50% —
Total Debt Obligations $ 193,266 $ 502,062 $ 457,498 $ 439,985 $ 129 $ 500,000 $ 2,092,940 $ 2,091,623 $ 1,637,876
Foreign Exchange Risk. We use foreign currency forward and option contracts to reduce our exposure to currency fluctuations on our foreign currency
exposures in our foreign sales subsidiaries and AMD Saxony and for foreign currency denominated fixed-asset purchase commitments. The objective of these
contracts is to minimize the impact of foreign currency exchange rate movements on our operating results and on the cost of capital asset acquisitions. Our
accounting policy for these instruments is based on our designation of such instruments as hedges of underlying exposure to variability in cash flows. We do not
use these contracts for speculative or trading purposes.
We had an aggregate of $421 million (notional amount) of short-term foreign currency forward contracts and purchased call option contracts denominated
in Japanese yen and European Union euro outstanding as of December 28, 2003.
Unrealized gains and losses related to the foreign currency forward and option contracts for the year ended December 28, 2003 were not material. We do
not anticipate any material adverse effect on our consolidated financial position, results of operations or cash flows resulting from the use of these instruments in
the future. However, we cannot give any assurance that these strategies will be effective or that transaction losses can be minimized or forecasted accurately.
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Source: ADVANCED MICRO DEVIC, 10-K, March 09, 2004