Advanced Micro Devices, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Financial Instruments (Tables)

Financial Instruments (Tables)

12 Months Ended

Dec. 28, 2019

Investments, Debt and Equity Securities [Abstract]

Cash, Cash Equivalents and Marketable Securities

Cash and financial instruments measured and recorded at fair value on a recurring basis, which approximates amortized cost, as of December 28, 2019 and December 29, 2018 are summarized below:



	Total Fair Value		Cash and Cash Equivalents		Marketable Securities
	(In millions)
December 28, 2019
Cash	$	1,465	$	1,465	$	—
Level 1⁽¹⁾
Government money market funds	$	1	$	1	$	—
Total level 1	$	1	$	1	$	—
Level 2⁽²⁾
Commercial paper	$	37	$	—	$	37
Total level 2	$	37	$	—	$	37
Total	$	1,503	$	1,466	$	37



	Total Fair Value		Cash and Cash Equivalents		Marketable Securities
	(In millions)
December 29, 2018
Cash	$	315	$	315	$	—
Level 1⁽¹⁾
Government money market funds	$	275	$	275	$	—
Total level 1	$	275	$	275	$	—
Level 2⁽²⁾
Commercial paper	$	566	$	488	$	78
Total level 2	$	566	$	488	$	78
Total	$	1,156	$	1,078	$	78



⁽¹⁾		Level 1 fair value estimates are based on quoted prices for identical instruments in active markets.

⁽²⁾		Level 2 fair value estimates are based on quoted prices for identical or comparable instruments in markets that are not active or comparable instruments in active markets.

Financial Instruments Not Recorded at Fair Value on a Recurring Basis

The Company carries its certain 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 28, 2019				December 29, 2018
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
	(In millions)
Short-term debt	$	—	$	—	$	136	$	136
Long-term debt, net⁽¹⁾	$	486	$	1,823	$	1,114	$	2,428

⁽¹⁾

Carrying amounts of long-term debt are net of unamortized debt issuance costs of $4 million and $16 million as of December 28, 2019 and December 29, 2018, respectively, and net of $73 million and $262 million unamortized debt discount associated with the 2.125% Notes as of December 28, 2019 and December 29, 2018, respectively. The carrying amounts above do not include the equity component related to the conversion feature of the 2.125% Notes of $95 million and $305 million as of December 28, 2019 and December 29, 2018, respectively.

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

The following table shows the amount of losses included in accumulated other comprehensive income (loss) (AOCI), the amount of losses 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 losses included in other expense, net, related to contracts not designated as hedging instruments which was allocated in the consolidated statements of operations:



				Year Ended
				December 28, 2019									December 29, 2018
	Cost of sales			Research and development			Marketing, general and administrative			Other expense, net			Research and development			Marketing, general and administrative			Other expense, net
				(In millions)
Contracts designated as cash flow hedging instruments
Losses reclassified from AOCI into earnings	$	(1	)	$	(4	)	$	(1	)	$	—		$	(4	)	$	(1	)	$	—
Contracts not designated as hedging instruments
Losses recognized in earnings	—			—			—			(1		)	—			—			(3		)
Total losses	$	(1	)	$	(4	)	$	(1	)	$	(1	)	$	(4	)	$	(1	)	$	(3	)

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

The following table shows the fair value amounts of the Company’s foreign currency derivative contracts depending on whether the foreign currency forward contracts were a gain or loss position. These amounts were recorded in the Company’s consolidated balance sheets in either Other current assets or Other current liabilities.



	December 28, 2019			December 29, 2018
	(In millions)
Foreign Currency Forward Contracts - gains (losses)
Contracts designated as cash flow hedging instruments - gains	$	2		$	1
Contracts designated as cash flow hedging instruments - losses	$	(2	)	$	(8	)