AMD 2012 Annual Report Download - page 93

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NOTE 7: Financial Instruments
Available-for-sale securities held by the Company as of December 29, 2012 and December 31, 2011 were as
follows:
December 29,
2012
December 31,
2011
(In millions)
Fair Value
Classified as cash equivalents:
Money market funds ............................................... $402 $738
Commercial paper ................................................. 75 1
Total classified as cash equivalents ................................ $477 $739
Classified as current marketable securities:
Commercial paper ................................................. $324 $698
Time deposits ..................................................... 100 160
Auction rate securities .............................................. 28 38
Marketable equity securities ......................................... 1 —
Total classified as current marketable securities ...................... $453 $896
Classified as long-term marketable securities:
Money market funds ............................................... $ 13 $ 9
Corporate bonds ................................................... 168 140
Total classified as long-term marketable securities .................... $181 $149
Classified as other assets:
Money market funds ............................................... $ 10 $ 10
Mutual funds ..................................................... 14 —
Total classified as other assets .................................... $ 24 $ 10
The amortized cost of available-for-sale securities approximates the fair value for the periods presented.
At December 29, 2012 and December 31, 2011, the Company had approximately $10 million of available-
for-sale investments in money market funds used as collateral for leased buildings and letter of credit deposits,
which were included in other assets on the Company’s consolidated balance sheets. The Company is restricted
from accessing these deposits.
At December 29, 2012, the Company had approximately $14 million of available-for-sale investments in
mutual funds held in a Rabbi trust established for the Company’s deferred compensation plan, which were
included in other assets on the Company’s consolidated balance sheets. The Company is restricted from
accessing these investments.
The Company did not realize any gain or loss on sales of available-for-sale securities of approximately
$6 million during 2012. The Company recorded an other-than-temporary impairment charge of approximately
$4 million on one its ARS holdings during 2012.
The Company realized a gain of approximately $4 million on sales of available-for-sale securities of
approximately $29 million during 2011. The gain includes approximately $2 million in other income (expense),
net from redemption of auction rate securities (ARS) called at par for $21 million with a net carrying amount of
$19 million during 2011.
The carrying value of the Company’s remaining ARS holdings as of December 29, 2012 was $28 million
(par value $37 million). The Company has the intent and believes it has the ability to sell these securities within
the next 12 months.
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