AMD 2009 Annual Report Download - page 136

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of $135 million. As a result of the decisions and transactions described above, pursuant to applicable accounting
guidance, the operating results of the Digital Television business unit are presented as discontinued operations in
the consolidated statements of operations for all periods presented. Cash flows from discontinued operations
were not material and were combined with cash flows from continuing operations within the consolidated
statement of cash flows categories.
The results from discontinued operations for the Company’s former Digital Television business unit were as
follows:
2009 2008 2007
(In millions)
Net revenue ........................................... $— $ 73 $155
Expenses ............................................. (3) (147) (230)
Impairment of goodwill and acquired intangible assets ......... — (609) (476)
Restructuring charges ................................... — (1) —
Loss from discontinued operations ......................... $ (3) $(684) $(551)
NOTE 21: Hedging Transactions and Derivative Financial Instruments
The following table shows the amount of gain (loss) included in other comprehensive income (loss), the
amount of gain (loss) reclassified from other comprehensive income (loss) and included in earnings, and the fair
value amounts included in prepaid expenses and other current assets should the foreign currency forward
contracts designated as cash flow hedges be in a gain position and accrued liabilities if in a loss position for the
year ended December 26, 2009. The table also includes the amount of gain (loss) included in other income
(expense) related to contracts not designated as hedging instruments for the year ended December 26, 2009.
Location of gain (loss)
Amount of gain/
(loss) during
the year ended
December 26,
2009
Fair value
included in
accrued
liabilities
Foreign Currency Forward Contracts
Contracts designated as cash flow hedging instruments ...... $ 6
Other comprehensive income (loss) .................. $ (2)
Cost of sales .................................... $(17)
Research and development ......................... $ (9)
Marketing, general and administrative ................ $ (4)
Contracts not designated as hedging instruments ............ $—
Other income (expense), net ........................ $(37)
For the foreign currency contracts designated as cash flow hedges, the ineffective portions of the hedging
relationship and the amounts excluded from the assessment of hedge effectiveness were de minimis.
As of December 26, 2009, the notional value of the Company’s outstanding foreign currency forward
contracts was $384 million. All the contracts mature within 12 months and upon maturity the amounts recorded
in other comprehensive income (loss) are expected to be reclassified into earnings. Under an agreement with the
counterparties, the Company is required to post a minimum $15 million collateral to secure credit lines to execute
these derivative instruments. In addition, the Company is required to post additional collateral should the
derivative contracts be in a net loss position. As of December 26, 2009, $24 million of collateral has been posted.
NOTE 22: Subsequent Events
The Company has evaluated all events or transactions occurring after December 26, 2009 through
February 19, 2010, the date the Company completed its consolidated financial statements and filed its Annual
Report on Form 10-K for fiscal year 2009.
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