Advanced Micro Devices, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Financial Instruments (Tables)

Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2018

Investments, Debt and Equity Securities [Abstract]

Cash and financial instruments measured and recorded at fair value as of March 31, 2018 and December 30, 2017 are summarized below:



	March 31, 2018		December 30, 2017
	(In millions)
Cash	$	113	$	108
Level 1^{(1) (2)}
Government money market funds	$	45	$	395
Total level 1	$	45	$	395
Level 2^{(1) (3)}
Commercial paper	$	887	$	682
Total level 2	$	887	$	682
Total	$	1,045	$	1,185


⁽¹⁾	The Company did not have any transfers between Level 1 and Level 2 of the fair value hierarchy during the quarter ended March 31, 2018 or the year ended December 30, 2017.


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



	March 31, 2018				December 30, 2017
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
	(In millions)
Short-term debt	$	223	$	229	$	70	$	70
Long-term debt, net⁽¹⁾	$	1,164	$	1,889	$	1,324	$	2,103


⁽¹⁾	Carrying amounts of long-term debt are net of unamortized debt issuance costs of $19 million as of March 31, 2018 and net of unamortized debt discount associated with the 2.125% Notes of $280 million as of March 31, 2018 and $286 million as of December 30, 2017.

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

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



	Three Months Ended
	March 31, 2018			April 1, 2017
	(In millions)
Foreign Currency Forward Contracts - gains (losses)
Contracts designated as cash flow hedging instruments
Other comprehensive income (loss)	$	(3	)	$	2
Research and development	3			1
Marketing, general and administrative	1			—
Contracts not designated as hedging instruments
Other income (expense), net	$	(2	)	$	—

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 31, 2018		December 30, 2017
	(In millions)
Foreign Currency Forward Contracts - gains (losses)
Contracts designated as cash flow hedging instruments	$	5	$	7