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Table of Contents
NOTE 5: Financial Instruments
Available-for-sale securities held by the Company as of December 25, 2005 and December 26, 2004 are as follows:
Amortized
Cost
Gross
unrealized
gains
Gross
unrealized
losses
Fair Market
Value
(In thousands)
2005
Cash equivalents:
Commercial paper $ 363,385 $ — $ — $ 363,385
Time deposits 124,696 — — 124,696
Money market funds 50,022 — — 50,022
Total cash equivalents $ 538,103 $ — $ — $ 538,103
Short-term investments:
Commercial paper $ 688,657 $ — $ — $ 688,657
Auction rate preferred stocks 223,650 — — 223,650
Spansion Senior Notes (see Note 3) 158,957 — — 158,957
Federal agency notes 90,435 — — 90,435
Total short-term investments $ 1,161,699 $ — $ — $ 1,161,699
Long-term investments:
Equity investments (included in other assets) $ 3,942 $ 2,602 $ — $ 6,544
Grand Total $ 1,703,744 $ 2,602 $ — $ 1,706,346
2004
Cash equivalents:
Time deposits $ 129,918 $ — $ — $ 129,918
Federal agency notes 17,429 — — 17,429
Money market funds 281,000 — — 281,000
Commercial paper 364,219 — — 364,219
Total cash equivalents $ 792,566 $ — $ — $ 792,566
Short-term investments:
Corporate notes $ 2,879 $ — $ (322) $ 2,557
Auction rate preferred stocks 274,625 — — 274,625
Total short-term investments $ 277,504 $ — $ (322) $ 277,182
Long-term investments:
Equity investments (included in other assets) $ 3,492 $ 3,161 $ — $ 6,653
Grand Total $ 1,073,562 $ 3,161 $ (322) $ 1,076,401
Long-term equity investments consist of marketable equity securities that, while available for sale, are not intended to be used to fund current operations.
Except for auction rate preferred stock and the Spansion Senior Notes, all contractual maturities of the Company’s available-for-sale marketable securities
at December 25, 2005 are within one year. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay
obligations without call or prepayment penalties. The Company classified auction rate preferred stock as short-term investments because the Company has the
intent and the ability to sell them within one year.
The Company did not realize any gain or loss from sale of available-for-sale securities in 2005. The Company realized net gains from the sale of
available-for-sale securities of $7.5 million in 2004 and $3.7 million in 2003.
93
Source: ADVANCED MICRO DEVIC, 10-K, February 27, 2006