AMD 2006 Annual Report Download - page 94

Table of Contents
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. In particular, generally we hedge only a portion of our foreign
currency exchange exposure. Moreover, we determine our total foreign currency exchange exposure using projections of long-term expenditures for items such
as equipment and materials used in manufacturing. We cannot assure you that our hedging activities will eliminate foreign exchange rate exposure. Failure to do
so could have an adverse effect on our business, financial condition, results of operations and cash flow.
The following table provides information about our foreign currency forward and option contracts as of December 31, 2006 and December 25, 2005. All
of our foreign currency forward contracts and option contracts mature within 12 months.
Fiscal 2006 Fiscal 2005
Notional
amount
Average
contract
rate
Estimated
fair value
gain (loss)
Notional
amount
Average
contract
rate
Estimated
fair value
gain (loss)
(In millions except contract rates)
Foreign currency forward contracts:
Japanese yen $ 26 117.62 $ — $ — — $ —
Canadian dollar 117 1.1181 (4) — — —
Euro 1,099 1.3036 13 239 1.2020 3
Foreign currency option contracts:
Euro — — — 327 1.3002 (13)
Total: $ 1,242 $ 9 $ 566 $ (10)
89
Source: ADVANCED MICRO DEVIC, 10-K, March 01, 2007