AMD 2003 Annual Report Download - page 79

Table of Contents
The amortized cost and estimated fair value of available-for-sale marketable securities at December 28, 2003, by contractual maturity, are shown below.
Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without call or prepayment penalties.
The Company does not have any available-for-sale marketable securities with maturities greater than five years from December 28, 2003.
Amortized
Cost
Estimated
Fair Value
(thousands)
Due in one year or less $ 119,105 $ 119,191
Due after one year through five years 8,387 8,372
Total $ 127,492 $ 127,563
The Company realized net gains from the sale of available-for-sale securities of $3.7 million and $5.3 million in 2003 and 2002, and net losses of $1.6
million in 2001.
At December 28, 2003 and December 29, 2002, the Company had approximately $12 million and $13 million of investments classified as held to maturity,
consisting of commercial paper and treasury notes used for long-term workers’ compensation and leasehold deposits, that are included in other assets. The fair
market value of these investments approximates their cost at December 28, 2003 and December 29, 2002.
The compensating balance of $218 million at December 28, 2003 represents the minimum cash balance that AMD Saxony must maintain pursuant to the
terms of the Dresden Loan Agreements (see Notes 7 and 12).
Included in other current assets is $22 million of restricted cash associated with the advance receipt of interest subsidies from the Federal Republic of
Germany and the State of Saxony. Restrictions over the Company’s access to the restricted cash will lapse as the Company incurs qualifying interest expense on
the Dresden term loans (see Notes 7 and 12) over the next four quarters.
Fair Value of Other Financial Instruments. The Company estimates the fair value of its debt instruments using a discounted cash flow analysis based on
estimated interest rates for similar types of currently available instruments with similar remaining maturities. The carrying amounts and estimated fair values of
the Company’s debt instruments are as follows:
2003 2002
Carrying
amount
Estimated
Fair Value
Carrying
amount
Estimated
Fair Value
(Thousands)
Notes payable to banks $ — $ — $ 913 $ 913
Long-term debt and capital leases:
Capital leases 245,958 244,641 40,321 37,229
Long-term debt (excluding capital leases) 1,846,982 1,846,982 1,599,734 1,599,734
Total long-term debt and capital leases 2,092,940 2,091,623 1,640,055 1,636,963
Less: current portion 193,266 192,725 71,348 70,192
Total long-term debt and capital leases, less current portion $ 1,899,674 $ 1,898,898 $ 1,568,707 $ 1,566,771
The fair value of the Company’s accounts receivable and accounts payable approximate book value based on existing payment terms.
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Source: ADVANCED MICRO DEVIC, 10-K, March 09, 2004