AMD 2009 Annual Report Download - page 107

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The Company realized net gains from the sale of available-for-sale securities of $1 million in each of the
year ended December 26, 2009, and December 29, 2007. The Company’s realized net gains from sale of
available-for-sale securities for the year ended December 27, 2008 was minimal.
The Company recorded other than temporary impairment charges of $3 million and $53 million during 2009
and 2008, respectively, for its investment in Spansion Inc. due to Spansion’s deteriorating financial performance
and stock price.
In addition, at December 26, 2009 and December 27, 2008, the Company had approximately $45 million
and $31 million, respectively, of available-for-sale investment in money market funds, commercial paper and
treasury notes used as collateral for long-term workers’ compensation, leasehold, foreign exchange and letter of
credit deposits, which are included in other assets on the Company’s consolidated balance sheets. The Company
is restricted from accessing these deposits. The fair value of these investments approximated their cost at
December 26, 2009 and December 27, 2008.
The Company also had trading securities, consisting of ARS subject to the UBS put option, with carrying
values of $67 million (par value $69 million) and $71 million (par value $82 million) included in marketable
securities at December 26, 2009 and December 27, 2008.
Fair Value Measurements
Assets and (liabilities) measured at fair value are summarized below:
Fair value measurement at reporting dates using
December 26, 2009
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
(In millions)
Money market mutual funds (1) ................ $1,125 $1,125 $ — $ —
Commercial paper(2) ........................ 820 — 820 —
Time deposits(3) ........................... 448 — 448 —
Auction rate securities(4) ..................... 159 — — 159
UBS put option(5) .......................... 2 — — 2
Marketable equity securities(6) ................ 34 34 — —
Foreign currency derivative contracts(7) ......... (6) — (6) —
December 27, 2008
Money market mutual funds(1) ................ $ 576 $ 576 $— $—
Commercial paper(2) ........................ 18 — 18 —
Time deposits(3) ............................ 236 — 236 —
Auction rate securities(4) ..................... 160 — — 160
UBS put option(5) ........................... 11 — — 11
Marketable equity securities(6) ................ 5 5 — —
Foreign currency derivative contracts(7) ......... (36) — (36) —
(1) At December 26, 2009, $1,081 million was included in cash and cash equivalents and $44 million was
included in other assets on the Company’s consolidated balance sheet. At December 27, 2008, $547 million
was included in cash and cash equivalents and $29 million was included in other assets on the Company’s
consolidated balance sheet.
(2) At December 26, 2009, $31 million was included in cash and cash equivalents, $788 million was included in
marketable securities and $1 million was included in other assets on the Company’s consolidated balance
sheet. At December 27, 2008, $16 million was included in cash and cash equivalents and $2 million was
included in other assets on the Company’s consolidated balance sheet.
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