AMD 2010 Annual Report Download - page 102

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All contractual maturities of the Company’s available-for-sale debt securities at December 25, 2010 were
within one year except those for auction rate securities (ARS). The Company’s ARS have stated maturities
ranging from January 2030 to December 2050. Actual maturities may differ from contractual maturities because
issuers may have the right to call or prepay obligations without call or prepayment penalties. During the year
ended December 25, 2010, the issuers tendered $29 million par value of ARS with a net carrying amount of $26
million for $27 million. The carrying value of the Company’s remaining ARS holdings as of December 25, 2010
was $57 million (par value $66 million). The Company has the intent and believes it has the ability to sell these
securities within the next 12 months.
During 2010, the Company sold a portion of its marketable equity securities for $41 million and recorded a
gain of $16 million in other income (expense), net.
The Company realized net gains of $1 million from ARS tender activities in 2010 and $1 million in 2009.
In addition to the ARS included in the table above, the Company also had trading securities, consisting of
ARS subject to a UBS put option, with carrying values of $67 million (par value $69 million) included in
marketable securities at December 26, 2009. UBS redeemed all of these ARS at par during 2010 and the
Company recognized a $2 million gain from this redemption. During 2009, the Company recorded a $10 million
gain on these securities to reflect the change in fair value.
Fair Value Measurements
Financial instruments measured and recorded at fair value on a recurring basis are summarized below:
Fair value measurement at reporting dates using
Total
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
(In millions)
December 25, 2010
Assets
Classified as cash equivalents:
Money market funds ......................... $ 405 $405 $ — $—
Commercial paper ........................... 51 — 51 —
Total classified as cash equivalents .......... $ 456 $405 $ 51 $—
Classified as marketable securities:
Commercial paper ........................... $ 983 $— $ 983 $—
Time deposits ............................... 135 — 135 —
Equity securities ............................. 8 8 — —
Auction rate securities ........................ 57 — — 57
Total classified as marketable securities ...... $1,183 $ 8 $1,118 $ 57
Classified as other assets:
Money market funds ......................... $ 29 $ 29 $ — $—
Equity securities ............................. 1 1 — —
Total classified as other assets .............. $ 30 $ 30 $ — $—
Total assets measured at fair value ................ $1,669 $443 $1,169 $ 57
Liabilities
Classified as accrued liabilities—Foreign currency
derivative contracts ............................ (3) — (3) —
Total liabilities measured at fair value .............. $ (3) $— $ (3) $—
94