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. 30, 2017

Investments, Debt and Equity Securities [Abstract]

Cash and cash equivalents measured and recorded at fair value on a recurring basis, which approximates amortized cost, as of December 30, 2017 and December 31, 2016 are summarized below:



	December 30, 2017		December 31, 2016
	(In millions)
Cash and cash equivalents
Cash	$	108	$	67
Level 1^{(1) (2)}
Government money market funds	395		50
Total level 1	395		50
Level 2^{(1) (3)}
Commercial paper	682		1,147
Total level 2	682		1,147
Total	$	1,185	$	1,264


⁽¹⁾	The Company did not have any transfers between Level 1 and Level 2 during 2017 and 2016.


⁽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 prices for identical instruments in markets that are not active or comparable instruments in active markets. 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 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 30, 2017				December 31, 2016
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
	(In millions)
Short-term debt	$	70	$	70	$	—	$	—
Long-term debt, net⁽¹⁾	$	1,324	$	2,103	$	1,434	$	2,313


⁽¹⁾	Carrying amounts of long-term debt are net of unamortized debt issuance costs of $19 million and $25 million as of December 30, 2017 and December 31, 2016, respectively, based on the adoption of ASU 2015-03, and net of $286 million and $308 million unamortized debt discount associated with the 2.125% Notes as of December 30, 2017 and December 31, 2016, respectively.

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 consolidated statements of operations:



	2017			2016
	(In millions)
Foreign Currency Forward Contracts - gains (losses)
Contracts designated as cash flow hedging instruments
Other comprehensive income (loss)	$	9		$	4
Research and development	7			(1		)
Marketing, general and administrative	1			—
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 30, 2017		December 31, 2016
	(In millions)
Foreign Currency Forward Contracts - gains (losses)
Contracts designated as cash flow hedging instruments	$	7	$	(2	)