Annual report pursuant to Section 13 and 15(d)

Segment Reporting

v2.4.0.8
Segment Reporting
 12 Months Ended
Dec. 28, 2013
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 segments:
•the Computing Solutions segment, comprised of x86 microprocessors, as standalone devices or as incorporated as an
APU, chipsets, embedded processors and dense servers; and
•the Graphics and Visual Solutions segment, comprised of graphics processing units (GPUs) including professional
graphics, semi-custom System-on-Chip (SOC) products, revenue from development services and royalties for game consoles.
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 amortizations of acquired intangible assets, employee stock-based compensation expense, restructuring and other special charges, net, a charge related to the limited waiver of exclusivity from GF and legal settlements, net. The Company also reported the results of former businesses in the All Other category because the operating results were not material.
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 2013, 2012 and 2011.
 
 
2013
 
2012
 
2011
 
(In millions)
Net revenue:
 
 
 
 
 
Computing Solutions
$
3,104

 
$
4,005

 
$
5,002

Graphics and Visual Solutions
2,193

 
1,417

 
1,565

All Other
2

 
—

 
1

Total net revenue
$
5,299

 
$
5,422

 
$
6,568

Operating income (loss):
 
 
 
 
 
Computing Solutions
$
(22
)
 
$
(231
)
 
$
556

Graphics and Visual Solutions
216

 
105

 
51

All Other
(91
)
 
(930
)
 
(239
)
Total operating income (loss)
$
103

 
$
(1,056
)
 
$
368

Interest income
5

 
8

 
10

Interest expense
(177
)
 
(175
)
 
(180
)
Other income (expense), net
(5
)
 
6

 
(199
)
Dilution gain in investee, net
—

 
—

 
492

Income (loss) from continuing operations before income taxes
$
(74
)
 
$
(1,217
)
 
$
491


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; assembly, test, mark and packaging activities; and sales, marketing and administrative activities. The Company conducts product and system research and development activities for its products in the United States, with additional design and engineering teams China, Canada, India, Singapore, Taiwan, and Israel. The Company’s assembly, test, market and packaging facilities are located in Malaysia and China. The Company’s material sales and marketing offices are located in the United States, Latin America, Europe and Asia.
The following table summarizes sales to external customers by country:
 
2013
 
2012
 
2011
 
(In millions)
United States
$
801

 
$
407

 
$
456

Europe
460

 
469

 
779

China
2,519

 
3,131

 
3,493

Singapore
610

 
856

 
1,056

Japan
710

 
305

 
445

Other countries
199

 
254

 
339

Total sales to external customers
$
5,299

 
$
5,422

 
$
6,568


The Company had three customers that accounted for more than 10% of the Company’s consolidated net revenue in 2013, and one customer that accounted for more than 10% of the Company's consolidated net revenue in 2012 and 2011. Net sales to these customers were approximately 17%, 11% and 10% of consolidated net revenue in 2013 and 22% of consolidated net revenue in 2012 and 2011.
The following table summarizes long-lived assets by geographic areas:
 
December 28,
2013
 
December 29,
2012
 
(In millions)
United States
$
153

 
$
417

Malaysia
66

 
66

China
46

 
59

Singapore
18

 
37

Other countries
63

 
79

Total long-lived assets
$
346

 
$
658