AMD 2012 Annual Report Download - page 118

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The following table provides a summary of each major type of cost associated with the 2012, 2011 and 2008
restructuring plans through December 29, 2012:
2012 2011 2010
(In millions)
Severance and benefits .................................... $ 95 $54 $ (4)
Contract or program terminations ............................ — 45 —
Asset impairments ........................................ 4 1 —
Facility consolidations and closures .......................... 1 (2) —
Total .................................................. $100 $98 $ (4)
NOTE 18: Hedging Transactions and Derivative Financial Instruments
The following table shows the amount of gain (loss) included in accumulated other comprehensive income
(loss), the amount of gain (loss) reclassified from accumulated other comprehensive income (loss) and included
in earnings related to the foreign currency forward contracts designated as cash flow hedges and the amount of
gain (loss) included in other income (expense), net related to contracts not designated as hedging instruments,
which was allocated in the consolidated statement of operations as follows:
2012 2011
(In millions)
Foreign Currency Forward Contracts
Contracts designated as cash flow hedging instruments
Other comprehensive income (loss) ............................. $ 2 $(8)
Research and development .................................... — 2
Marketing, general and administrative ........................... — 1
Contracts not designated as hedging instruments
Other income, net ........................................... $ 1 $5
The following table shows the fair value amounts included in prepaid expenses and other current assets
should the foreign currency forward contracts be in a gain position or included in accrued liabilities should these
contracts be in a loss position. These amounts were recorded in the consolidated balance sheet as follows:
December 29,
2012
December 31,
2011
(In millions)
Foreign Currency Forward Contracts
Contracts designated as cash flow hedging instruments ...... $— $ (2)
Contracts not designated as hedging instruments ........... $— $—
For the foreign currency contracts designated as cash flow hedges, the ineffective portions of the hedging
relationship and the amounts excluded from the assessment of hedge effectiveness were immaterial.
As of December 29, 2012 and December 31, 2011, the notional value of the Company’s outstanding foreign
currency forward contracts was $142 million and $141 million, respectively. All the contracts mature within
12 months, and upon maturity the amounts recorded in accumulated other comprehensive income (loss) are
expected to be reclassified into earnings. The Company hedges its exposure to the variability in future cash flows
for forecasted transactions over a maximum of 12 months. As of December 29, 2012, the Company’s outstanding
contracts were in a minimal net gain position. The Company is required to post collateral should the derivative
contracts be in a net loss position exceeding certain thresholds. As of December 29, 2012, the Company was not
required to post any collateral.
110