Annual report pursuant to Section 13 and 15(d)

Segment Reporting

v2.4.0.6
Segment Reporting
 12 Months Ended
Dec. 29, 2012
Segment Reporting [Abstract]  
Segment Reporting
Segment Reporting
Management, including the Chief Operating Decision Maker, who is the Company’s Chief Executive Officer, reviews and assesses operating performance using segment net revenues and operating income (loss) before interest, other income (expense), net and income taxes. These performance measures include the allocation of expenses to the operating segments based on management’s judgment.
The Company uses the following two reportable operating segments:
•the Computing Solutions segment, which includes microprocessors, as standalone devices or as incorporated as an APU, chipsets and embedded processors; and
•the Graphics segment, which includes graphics, video and multimedia products developed for use in desktop and notebook computers, including home media PCs, professional workstations and servers as well as revenue received in connection with the development and sale of game console systems that incorporate the Company's graphics technology.
In addition to these reportable segments, the Company has an All Other category, which is not a reportable segment. This category includes certain expenses and credits that are not allocated to any of the operating segments because management does not consider these expenses and credits in evaluating the performance of the operating segments. Also included in this category are amortization of acquired intangible assets, stock-based compensation expense, restructuring charges and a charge related to the limited waiver of exclusivity from GF.
The following table provides a summary of net revenue and operating income (loss) by segment and income (loss) from continuing operations before income taxes for 2012, 2011 and 2010.
 
 
2012
 
2011
 
2010
 
(In millions)
Net revenue:
 
 
 
 
 
Computing Solutions
$
4,005

 
$
5,002

 
$
4,817

Graphics
1,417

 
1,565

 
1,663

All Other
—

 
1

 
14

Total net revenue
$
5,422

 
$
6,568

 
$
6,494

Operating income (loss):
 
 
 
 
 
Computing Solutions
$
(231
)
 
$
556

 
$
529

Graphics
105

 
51

 
149

All Other
(930
)
 
(239
)
 
170

Total operating income (loss)
$
(1,056
)
 
$
368

 
$
848

Interest income
8

 
10

 
11

Interest expense
(175
)
 
(180
)
 
(199
)
Other income (expense), net
6

 
(199
)
 
311

Equity income (loss) and dilution gain in investee, net
—

 
492

 
(462
)
Income (loss) from continuing operations before income taxes
$
(1,217
)
 
$
491

 
$
509


The Company does not discretely allocate assets to its operating segments, nor does management evaluate operating segments using discrete asset information.
The Company’s operations outside the United States include research and development activities, back end manufacturing and sales, marketing and administrative activities. The Company conducts product and system research and development activities for its products in Canada, India, Greater China, Singapore, Taiwan,United Kingdom, Israel and Japan. The Company’s back end manufacturing subsidiaries are located in Malaysia and Greater China. Its material sales and marketing entities are located in the United States, Europe, Greater China, Singapore and Japan.
The following table summarizes sales to external customers by country:
 
2012
 
2011
 
2010
 
(In millions)
United States
$
407

 
$
456

 
$
747

Europe
469

 
779

 
985

Greater China
3,131

 
3,493

 
3,006

Singapore
856

 
1,056

 
875

Japan
305

 
445

 
561

Other countries
254

 
339

 
320

Total sales to external customers
$
5,422

 
$
6,568

 
$
6,494


The Company had one customer that accounted for more than 10% of the Company’s consolidated revenue. Net sales to this customer were approximately 22% of consolidated net revenue in 2012, 2011 and 2010, and were primarily attributable to the Computing Solutions segment in each of these years.
The following table summarizes long-lived assets by geographic areas:
 
December 29,
2012
 
December 31,
2011
 
(In millions)
United States
$
417

 
$
455

Malaysia
66

 
70

Greater China
59

 
60

Singapore
37

 
56

Other countries
79

 
85

Total long-lived assets
$
658

 
$
726