AMD 2002 Annual Report Download - page 47

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 29, 2002 and comparable fair values as of December 30, 2001:
2002 2001
2003 2004 2005 2006 2007 Thereafter Total Fair value Fair value
(Thousands)
Investment Portfolio
Cash equivalents:
Fixed rate amounts $ 14,265 $ — $ — $ — $ — $ — $ 14,265 $ 14,276 $ 126,379
Weighted-average rate 1.39% — — — — —
Variable rate amounts $ 108,908 — — — — — $ 108,908 $ 109,076 $ 152,140
Weighted-average rate 1.34% — — — — —
Short-term investments:
Fixed rate amounts $ 64,934 $ 138,604 $ 108,382 $ 21,421 — — $ 333,341 $ 336,494 $ 426,359
Weighted-average rate 2.60% 2.55% 2.99% 4.29% — —
Variable rate amounts $ 271,261 — $ 1,000 — — — $ 272,261 $ 272,463 $ 16,350
Weighted-average rate 1.74% — 2.18% — — —
Long-term equity investments:
Equity investments — — — — — $ 8,023 $ 8,023 $ 7,885 $ 19,342
Fixed rate amounts — $ 12,433 — — — — $ 12,433 $ 12,554 $ 13,323
Weighted-average rate — 1.88% — — — —
Total Investment Portfolio $ 459,368 $ 151,037 $ 109,382 $ 21,421 $ — $ 8,023 $ 749,231 $ 752,748 $ 753,893
Debt Obligations
Debt—fixed rate amounts $ 30,939 $ 31,252 $ 281,273 $ 243,770 $ 402,500 $ 500,000 $ 1,489,734 $ 1,384,611 $ 571,679
Weighted-average rate 4.22% 4.29% 5.05% 5.09% 4.50% 4.75% — — —
Debt—variable rate
amounts $ 27,500 $ 27,500 $ 27,500 $ 27,500 $ — $ — $ 110,000 $ 109,524 $ —
Weighted-average rate 5.80% 5.80% 5.81% 5.88% — — — — —
Notes payable to banks $ 913 $ — $ — $ — $ — $ — $ 913 $ 913 $ 63,362
Weighted-average rate 5.26% — — — — — — — —
Capital leases $ 12,909 $ 18,691 $ 5,507 $ 3,214 $ — $ — $ 40,321 $ 36,587 $ 31,550
Weighted-average rate 14.92% 8.27% 8.40% 2.63% — — — — —
Total Debt Obligations $ 72,261 $ 77,443 $ 314,280 $ 274,484 $ 402,500 $ 500,000 $ 1,640,968 $ 1,531,635 $ 666,591
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, on liabilities for products purchased from FASL 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 $492 million (notional amount) of short-term foreign currency forward contracts and option contracts denominated in Japanese
yen, European Union euro and Singapore dollar outstanding as of December 29, 2002.
Unrealized gains and losses related to the foreign currency forward and option contracts for the year ended December 29, 2002 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 14, 2003