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

Annual report pursuant to Section 13 and 15(d)

Financial Instruments

Financial Instruments

12 Months Ended

Dec. 28, 2024

Investments, Debt and Equity Securities [Abstract]

Financial Instruments Recorded at Fair Value on a Recurring Basis


	December 28, 2024								December 30, 2023
(In millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Total
Cash equivalents
Money market funds	$	1,496	$	—	$	—	$	1,496	$	969	$	—	$	969
Corporate debt securities	—		806		—		806		—		753		753
U.S. government and agency securities	130		—		—		130		1,252		—		1,252
Non-U.S. government and agency securities	—		116		—		116		—		135		135
Time deposits and certificates of deposits	—		107		—		107		—		205		205
Short-term investments
Corporate debt securities	—		814		—		814		—		506		506
Time deposits and certificates of deposits	—		10		—		10		—		9		9
Asset-backed and mortgage-backed securities	—		28		—		28		—		34		34
U.S. government and agency securities	332		82		—		414		1,209		28		1,237
Non-U.S. government and agency securities	—		79		—		79		—		54		54
Other non-current assets
Time deposits and certificates of deposits	—		1		—		1		—		1		1
Deferred compensation plan and other investments	197		—		25		222		133		—		133
Total assets measured at fair value	$	2,155	$	2,043	$	25	$	4,223	$	3,563	$	1,725	$	5,288

Deferred compensation plan investments are primarily mutual fund investments held in a Rabbi trust established to maintain the Company’s executive deferred compensation plan.

The following is a summary of cash equivalents and short-term investments:


	December 28, 2024								December 30, 2023
	Cost/ Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Cost/ Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(in millions)								(in millions)
Asset-backed and mortgage-backed securities	$	30	$	—	$	(2)	$	28	$	35	$	—	$	(2)	$	33
Corporate debt securities	1,621		—		(1)		1,620		1,259		—		—		1,259
Money market funds	1,496		—		—		1,496		969		—		—		969
Time deposits and certificates of deposits	117		—		—		117		214		—		—		214
U.S. government and agency securities	544		—		—		544		2,487		3		—		2,490
Non-U.S. government and agency securities	195		—		—		195		189		—		—		189
	$	4,003	$	—	$	(3)	$	4,000	$	5,153	$	3	$	(2)	$	5,154

As of December 28, 2024 and December 30, 2023, the Company did not have material available-for-sale debt securities which had been in a continuous unrealized loss position of more than twelve months.

The contractual maturities of investments classified as available-for-sale are as follows:


	December 28, 2024				December 30, 2023
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In millions)				(In millions)
Due within 1 year	$	2,073	$	2,073	$	3,792	$	3,792
Due in 1 year through 5 years	406		405		361		364
Due in 5 years and later	27		26		32		30
	$	2,506	$	2,504	$	4,185	$	4,186

Financial Instruments Measured at Fair Value on a Non-Recurring Basis

As of December 28, 2024 and December 30, 2023, the Company had non-marketable securities in privately-held companies of $468 million and $155 million, respectively, which are recorded at estimated fair value based on Level 3 inputs.

Financial Instruments Not Recorded at Fair Value

The carrying amounts and estimated fair values of the Company’s long-term debt are as follows:


	December 28, 2024				December 30, 2023
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
	(In millions)				(In millions)

Current portion of long-term debt, net	$	—	$	—	$	751	$	741
Long-term debt, net of current portion	$	1,721	$	1,543	$	1,717	$	1,630

The estimated fair value of the Company’s long-term debt is based on Level 2 inputs of quoted prices for the Company’s debt and comparable instruments in inactive markets.

The fair value of the Company’s accounts receivable, accounts payable and other short-term obligations approximate their carrying value based on existing terms.

Hedging Transactions and Derivative Financial Instruments

Foreign Currency Forward Contracts Designated as Accounting Hedges

The Company enters into foreign currency forward contracts to hedge its exposure to foreign currency exchange rate risk related to future forecasted transactions denominated in currencies other than the U.S. Dollar. These contracts generally mature within 24 months and are designated as accounting hedges. As of December 28, 2024 and December 30, 2023, the notional value of the Company’s outstanding foreign currency forward contracts designated as cash flow hedges was $2.2 billion and $2.4 billion, respectively. The fair value of these contracts as of December 28, 2024 is recorded within Prepaid expenses and other current assets, Accrued liabilities and Other long-term liabilities of $6 million, $60 million and $11 million, respectively. As of December 30, 2023, the fair value of these contracts was recorded within Prepaid expenses and other current assets and Accrued liabilities of $24 million and $18 million, respectively.

Foreign Currency Forward Contracts Not Designated as Accounting Hedges

The Company also enters into foreign currency forward contracts to reduce the short-term effects of foreign currency fluctuations on certain receivables or payables denominated in currencies other than the U.S. Dollar. These forward contracts generally mature within 3 months and are not designated as accounting hedges. As of December 28, 2024 and December 30, 2023, the notional value of these outstanding contracts was $642 million and $568 million, respectively. The fair value of these contracts was not material as of December 28, 2024 and December 30, 2023.

The cash flows associated with derivative instruments as cash flow hedging instruments are classified in the same category within the Consolidated Statement of Cash Flows as the cash flows of the related items.