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. 31, 2016

Investments, Debt and Equity Securities [Abstract]

Cash and financial instruments measured and recorded at fair value on a recurring basis as of December 31, 2016 and December 26, 2015 are summarized below:



	December 31, 2016		December 26, 2015
	(In millions)
Cash and cash equivalents
Cash	$	67	$	409
Level 1^{(1) (2)}
Government money market funds	50		—
Total level 1	50		—
Level 2^{(1) (3)}
Commercial paper	1,147		376
Total level 2	1,147		376
Total	$	1,264	$	785


⁽¹⁾	The Company did not have any transfers between Level 1 and Level 2 of the fair value hierarchy during 2016 and 2015.


⁽²⁾	The Company's Level 1 assets are valued using quoted prices for identical instruments in active markets.


⁽³⁾	The Company’s Level 2 assets 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:



	December 31, 2016				December 26, 2015
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
	(In millions)
Short-term debt	$	—	$	—	$	230	$	230
Long-term debt, net⁽¹⁾	$	1,434	$	2,313	$	2,000	$	1,372


⁽¹⁾	Carrying amounts of long-term debt are net of unamortized debt issuance costs of $25 million as of December 31, 2016 and December 26, 2015, based on the adoption of ASU 2015-03, and net of $308 million unamortized debt discount associated with the 2.125% Notes as of December 31, 2016.

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

The following table shows the amount of gain (loss) included in accumulated other comprehensive loss, the amount of gain (loss) reclassified from accumulated other comprehensive 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:



	2016			2015
	(In millions)
Foreign Currency Forward Contracts - gains (losses)
Contracts designated as cash flow hedging instruments
Other comprehensive income (loss)	$	4		$	(1	)
Cost of sales	—			(4		)
Research and development	(1		)	(10		)
Marketing, general and administrative	—			(7		)
Contracts not designated as hedging instruments
Other income (expense), net	$	3		$	(3	)

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 consolidated balance sheets as follows:



	December 31, 2016			December 26, 2015
	(In millions)
Foreign Currency Forward Contracts - gains (losses)
Contracts designated as cash flow hedging instruments	$	(2	)	$	(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 consolidated balance sheets as follows:



	December 31, 2016		December 26, 2015
	(In millions)
Interest Rate Swap Contracts - gains (losses)
Contracts designated as fair value hedging instruments	$	—	$	7