AMD 2001 Annual Report Download - page 240

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Derivative Financial Instruments
The following table summarizes activity in accumulated other comprehensive
income (loss) related to derivatives classified as cash flow hedges held by the
Company during the period from January 1, 2001 through December 30, 2001:
Year Ended
(Thousands) December 30, 2001
---------------------
Cumulative effect of adopting SFAS 133 $ -
Reclassified into operations -
Changes in fair value of derivatives, net (3,399)
---------------------
$ (3,399)
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As of December 30, 2001, the Company expects to reclassify the amount
accumulated in other comprehensive income (loss) to operations within the next
twelve months upon the recognition in operations of the hedged forecasted
transactions.
Fair Value of Other Financial Instruments
The Company estimates the fair value of debt using a discounted cash flow
analysis based on estimated interest rates for similar types of borrowing
arrangements with similar remaining maturities. The carrying amounts and
estimated fair values of the Company's debt are as follows:
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(Thousands) 2001 2000
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Carrying Fair Carrying Fair
amount value amount value
------ ----- ------ -----
Notes payable to banks $ 63,362 $ 63,362 $ - $ -
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Long-term debt and capital leases:
Capital leases 32,469 31,550 15,874 15,213
Long-term debt (excluding capital
leases) 603,236 571,679 936,789 865,963
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Total long-term debt and capital
leases 635,705 603,229 952,663 881,176
Less: current portion 197,803 216,496 49,440 67,428
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Total long-term debt and capital
leases, less current portion $ 437,902 $ 386,733 $ 903,223 $ 813,748
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The fair value of the Company's accounts receivable and accounts payable
approximate book value based on existing payment terms.
NOTE 5: CONCENTRATIONS OF CREDIT RISK
Financial instruments that potentially subject the Company to concentrations of
credit risk consist primarily of cash equivalents, short-term investments, trade
receivables and derivative financial instruments used in hedging activities.
The Company places its cash equivalents and short-term investments with high
credit quality financial institutions and, by policy, limits the amount of
credit exposure with any one financial
Source: ADVANCED MICRO DEVIC, 10-K, March 07, 2002