AMD 2002 Annual Report Download - page 62

Table of Contents
The amortized cost and estimated fair value of available-for-sale marketable debt securities at December 29, 2002, 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.
Amortized Cost Estimated Fair Value
(Thousands)
Due in one year or less $ 336,195 $ 336,499
Due after one year through five years 269,407 272,458
Total $ 605,602 $ 608,957
The Company realized net gains from the sale of available-for-sale securities in 2002 of $5.3 million and net losses of $1.6 million in 2001. The Company
did not sell any available-for-sale securities in 2000.
At December 29, 2002 and December 30, 2001, the Company had approximately $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.
Included in cash and cash equivalents is a compensating balance of $108 million under the terms of the Dresden Loan Agreements (See Notes 7 and 12).
Also included in cash and cash equivalents is $31 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 debt using a discounted cash flow analysis based on estimated interest rates for similar types of currently
available borrowing arrangements with similar remaining maturities. The carrying amounts and estimated fair values of the Company’s debt are as follows:
2002 2001
Carrying
amount
Estimated Fair
Value
Carrying
amount
Estimate
Fair Value
(Thousands)
Notes payable to banks $ 913 $ 913 $ 63,362 $ 63,362
Long-term debt and capital leases:
Capital leases 40,321 36,587 32,469 31,550
Long-term debt (excluding capital leases) 1,599,734 1,493,840 603,236 571,679
Total long-term debt and capital leases 1,640,055 1,530,427 635,705 603,229
Less: current portion 71,348 107,551 197,803 216,496
Total long-term debt and capital leases, less current portion $ 1,568,707 $ 1,422,876 $ 437,902 $ 386,733
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 14, 2003