AMD 2010 Annual Report Download - page 103

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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 26, 2009
Assets
Classified as cash equivalents:
Money market funds ......................... $1,081 $1,081 $ — $—
Time deposits ............................... 348 — 348 —
Commercial paper ........................... 31 — 31 —
Total classified as cash equivalents .......... $1,460 $1,081 $ 379 $—
Classified as marketable securities:
Commercial paper ........................... $ 789 $ — $ 789 $—
Time deposits ............................... 100 — 100 —
Auction rate securities ........................ 101 — — 101
Equity securities ............................. 29 29 — —
Total classified as marketable securities ...... $1,019 $ 29 $ 889 $101
Classified as other assets:
Auction rate securities ........................ $ 58 $ — $ — $ 58
Money market funds ......................... 44 44 — —
Commercial paper ........................... 1 — 1 —
Equity securities ............................. 1 1 — —
Total classified as other assets .............. $ 104 $ 45 $ 1 $ 58
Classified as prepaid expenses and other current assets:
Equity securities ............................. $ 4 $ 4 $ — $—
UBS put option .............................. 2 — — 2
Total classified as prepaid expenses and other
current assets ......................... $ 6 $ 4 $ — $ 2
Total assets measured at fair value ................ $2,589 $1,159 $1,269 $161
Liabilities
Classified as accrued liabilities—Foreign currency
derivative contracts ............................ (6) — (6) —
Total liabilities measured at fair value .............. $ (6) $ — $ (6) $—
The Company carries financial instruments, except for its long term debt, at fair value. Investments in
money market mutual funds, commercial paper, time deposits, marketable equity securities and foreign currency
derivative contracts are primarily classified within Level 1 or Level 2. This is because such financial instruments
are valued primarily using quoted market prices or alternative pricing sources and models utilizing market
observable inputs, as provided to the Company by its brokers. The Company’s Level 1 assets are valued using
quoted prices for identical instruments in active markets. The Company’s Level 2 assets, all of which mature
within one year, are valued using broker reports that utilize quoted market prices for similar instruments. The
ARS investments are and the UBS put option was classified within Level 3 because they are valued using a
discounted cash flow model. Some of the inputs to this model are unobservable in the market and are significant.
The Company’s foreign currency derivative contracts are classified within Level 2 because the valuation inputs
are based on quoted prices and market observable data of similar instruments in active markets, such as currency
spot and forward rates. The Company did not have any transfers between Level 1 and Level 2 of the fair value
hierarchy.
95