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

Annual report pursuant to Section 13 and 15(d)

Goodwill And Acquired Intangible Assets

Goodwill And Acquired Intangible Assets

12 Months Ended

Dec. 31, 2011

Goodwill And Acquired Intangible Assets [Abstract]

Goodwill And Acquired Intangible Assets

NOTE 6: Goodwill and Acquired Intangible Assets

Goodwill

The Company recorded goodwill as a result of the ATI acquisition in 2006. The changes in the carrying amounts of goodwill by segment through December 31, 2011 were as follows:


	Computing Solutions			Graphics			All Other			Total
	(In millions)
Initial goodwill		161			1,288			745			2,194
Accumulated impairment losses		(161	)		(965	)		(745	)		(1,871	)
Balance at December 31, 2011	$	—		$	323		$	—		$	323

The carrying amount of goodwill as of December 31, 2011, December 25, 2010 and December 26, 2009 was $323 million.

Annual Impairment Analyses

In the fourth quarters of 2011 and 2010, the Company conducted its annual impairment tests of goodwill. Based on the results of the Company's analysis of goodwill, each reporting unit's fair values exceeded its carrying value by a significant amount, indicating that there was no goodwill impairment.

Acquisition-related intangible assets

The balances of acquisition-related intangible assets as of December 31, 2011, were as follows:


	Game console royalty agreements			Customer relationships			Trademark and trade name			Total
Intangible assets, net at December 26, 2009	$	54		$	28		$	16		$	98
Amortization expense		(29	)		(27	)		(5	)		(61	)
Intangible assets, net at December 25, 2010		25			1			11			37
Amortization expense		(25	)		(1	)		(3	)		(29	)
Intangible assets, net at December 31, 2011	$	—		$	—		$	8		$	8

Accumulated amortization of acquired intangible assets as of December 31, 2011 was approximately $540 million.

Estimated future amortization expense related to acquisition-related intangible assets is $4 million in each of 2012 and 2013.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details