ADVANCED MICRO DEVICES INC - 10-Q filing on 2016-04-28

Financial Instruments (Tables)

3 Months Ended

Mar. 26, 2016

Investments, Debt and Equity Securities [Abstract]

Cash and financial instruments measured and recorded at fair value on a recurring basis as of March 26, 2016 and December 26, 2015 are summarized below:



	March 26, 2016		December 26, 2015
	(In millions)
Cash and cash equivalents
Cash	$	309	$	409
Level 2^{(1) (2)}
Commercial paper	407		376
Total level 2	407		376
Total	$	716	$	785


⁽¹⁾	The Company did not have any transfers between Level 1 and Level 2 of the fair value hierarchy during the quarter ended March 26, 2016 or the year ended December 26, 2015.


⁽²⁾	The Company’s Level 2 short-term investments are valued using broker reports that utilize quoted market prices for identical or comparable instruments. Brokers gather observable inputs for all of the Company’s fixed income securities from a variety of industry data providers and other third-party sources.

Financial Instruments Not Recorded at Fair Value on a Recurring Basis

The carrying amounts and estimated fair values of financial instruments not recorded at fair value are as follows:



	March 26, 2016				December 26, 2015
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
	(In millions)
Short-term debt	$	230	$	230	$	230	$	230
Long-term debt⁽¹⁾	$	2,002	$	1,476	$	2,000	$	1,372


⁽¹⁾	Carrying amounts of long-term debt are net of unamortized debt issuance costs of $23 million as of March 26, 2016 and $25 million as of December 26, 2015, based on the adoption of ASU 2015-03.

Schedule of Derivative Instruments, Gain (Loss) in Statement of Operations

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 condensed consolidated statements of operations:



	Three Months Ended
	March 26, 2016			March 28, 2015
	(In millions)
Foreign Currency Forward Contracts - gains (losses)
Contracts designated as cash flow hedging instruments
Other comprehensive income (loss)	$	6		$	(7	)
Cost of sales	—			(1		)
Research and development	(2		)	(2		)
Marketing, general and administrative	—			(1		)
Contracts not designated as hedging instruments
Other income (expense), net	$	—		$	(1	)

Schedule of Fair Value Amounts of Foreign Currency Forward Contracts in Balance Sheet

The following table shows the fair value amounts included in Other current assets should the foreign currency forward contracts be in a gain position or included in Other current liabilities should these contracts be in a loss position. These amounts were recorded in the Company's condensed consolidated balance sheets as follows:



	March 26, 2016		December 26, 2015
	(In millions)
Foreign Currency Forward Contracts - gains (losses)
Contracts designated as cash flow hedging instruments	$	—	$	(6	)

Schedule of Fair Value Amounts of Fair Value Hedge Derivative Contracts in Balance Sheet

The following table shows the fair value amounts included in Other assets should the fair value hedge derivative contracts be in a gain position or included in Other long-term liabilities should these contracts be in a loss position. These amounts were recorded in the Company’s condensed consolidated balance sheets as follows:



	March 26, 2016		December 26, 2015
	(In millions)
Interest Rate Swap Contracts - gains (losses)
Contracts designated as fair value hedging instruments	$	4	$	7