AMD 2006 Annual Report Download - page 118

Table of Contents
NOTE 6: Financial Instruments
Available-for-sale securities held by the Company as of December 31, 2006 and December 25, 2005 were as follows:
Amortized
Cost
Gross
Unrealized
gains
Gross
Unrealized
losses
Fair Market
Value
(In millions)
2006
Cash equivalents:
Commercial paper $ 635 $ — $ — $ 635
Money market funds 84 — — 84
Time deposits 529 — — 529
Total cash equivalents $ 1,248 $ — $ — $ 1,248
Marketable securities:
Auction rate preferred stock $ 146 $ — $ — $ 146
Time deposits 15 — — 15
Total marketable securities $ 161 $ — $ — $ 161
Long-term investments:
Equity investments (included in other assets) $ 1 $ 3 $ — $ 4
Grand total $ 1,410 $ 3 $ — $ 1,413
2005
Cash equivalents:
Commercial paper $ 363 $ — $ — $ 363
Time deposits 125 — — 125
Money market funds 50 — — 50
Total cash equivalents $ 538 $ — $ — $ 538
Marketable securities:
Commercial paper $ 689 $ — $ — $ 689
Auction rate preferred stock 224 — — 224
Spansion senior subordinated notes (see Note 4) 159 — — 159
Federal agency notes 90 — — 90
Total marketable securities $ 1,162 $ — $ — $ 1,162
Long-term investments:
Equity investments (included in other assets) $ 4 $ 3 $ — $ 7
Grand total $ 1,704 $ 3 $ — $ 1,707
Long-term equity investments consist of marketable equity securities that, while available for sale, are not intended to be used to fund current operations.
All contractual maturities of the Company’s available-for-sale marketable securities at December 31, 2006 are within one year except those for auction rate
preferred stock. 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 current marketable securities because they represent investments of cash intended
to be used for current operations.
The Company realized net gains from the sale of available-for-sale securities of $2 million and $8 million in 2006 and 2004, and the Company did not
realize any gain or loss from sale of available-for-sale securities in 2005.
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Source: ADVANCED MICRO DEVIC, 10-K, March 01, 2007