AMD 2015 Annual Report Download - page 90

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Also in addition to those amounts presented above, at December 26, 2015 and December 27, 2014, the
Company had approximately $15 million and $16 million, respectively, of available-for-sale investments in
mutual funds held in a Rabbi trust established for the Company’s deferred compensation plan, which were also
included in “Other assets” on the Company’s consolidated balance sheets. These mutual funds are classified
within Level 1 because they are valued using quoted prices for identical instruments in active markets. Their
amortized cost approximates the fair value for all periods presented. The Company is restricted from accessing
these investments.
Financial Instruments Not Recorded at Fair Value on a Recurring Basis. The Company carries its
financial instruments at fair value with the exception of its debt. Financial instruments that are not recorded at
fair value are measured at fair value on a quarterly basis for disclosure purposes. The carrying amounts and
estimated fair values of financial instruments not recorded at fair value are as follows:
December 26, 2015 December 27, 2014
Carrying
Amount
Estimated
Fair Value
Carrying
Amount
Estimated
Fair Value
(In millions)
Short-term debt (excluding capital leases) .................... $ 230 $ 230 $ 172 $ 173
Long-term debt (excluding capital leases) .................... $2,025 $1,372 $2,025 $1,858
The Company’s short-term and long-term debt are classified within Level 2. The fair value of the debt was
estimated based on the quoted market prices for the same or similar issues or on the current rates offered to the
Company for debt of the same remaining maturities. The fair value of the Company’s accounts receivable,
accounts payable and other short-term obligations approximate their carrying value based on existing payment
terms.
Hedging Transactions and Derivative Financial Instruments
Cash Flow Hedges
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 statements of operations:
2015 2014
(In millions)
Foreign Currency Forward Contracts—gains (losses)
Contracts designated as cash flow hedging instruments .................
Other comprehensive income (loss) ............................ $ (1) $ (3)
Cost of sales ............................................... (4) —
Research and development ................................... (10) (3)
Marketing, general and administrative .......................... (7) (3)
Contracts not designated as hedging instruments ......................
Other income (expense), net .................................. $ (3) $ (3)
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.
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