Annual report pursuant to Section 13 and 15(d)

Supplementary Financial Information (unaudited)

v3.6.0.2
Supplementary Financial Information (unaudited)
 12 Months Ended
Dec. 31, 2016
Quarterly Financial Data [Abstract]  
Supplementary Financial Information (unaudited)
Supplementary Financial Information (unaudited)
The Company uses a 52 or 53 week fiscal year ending on the last Saturday in December. All quarters of 2016 and 2015 except the fourth quarter of 2016 consisted of 13 weeks; the fourth quarter of 2016 consisted of 14 weeks.
 
 
(In millions, except per share amounts)
  
2016
 
2015
  
Dec. 31
 
Sep. 24
 
Jun. 25
 
Mar. 26
 
Dec. 26
 
Sep. 26
 
Jun. 27
 
Mar. 28
Net revenue
$
1,106

 
$
1,307

 
$
1,027

 
$
832

 
$
958

 
$
1,061

 
$
942

 
$
1,030

Cost of sales(1)
755

 
1,248

 
708

 
563

 
675

 
822

 
710

 
704

Gross margin
351

 
59

 
319

 
269

 
283

 
239

 
232

 
326

Research and development
264

 
259

 
243

 
242

 
229

 
241

 
235

 
242

Marketing, general and administrative
121

 
117

 
117

 
105

 
109

 
108

 
134

 
131

Amortization of acquired intangible assets
—

 
—

 
—

 
—

 
—

 
—

 
—

 
3

Restructuring and other special charges (reversals), net
—

 
—

 
(7
)
 
(3
)
 
(6
)
 
48

 
—

 
87

Licensing gain
(31
)
 
(24
)
 
(26
)
 
(7
)
 
—

 
—

 
—

 
—

Operating income (loss)
(3
)
 
(293
)
 
(8
)
 
(68
)
 
(49
)
 
(158
)
 
(137
)
 
(137
)
Interest expense
(34
)

(41
)
 
(41
)
 
(40
)
 
(41
)

(39
)
 
(40
)
 
(40
)
Other income (expense), net(2)
(7
)
 
(63
)
 
150

 
—

 
(2
)
 
—

 
(3
)
 
—

Income (loss) before income taxes
(44
)
 
(397
)
 
101

 
(108
)
 
(92
)
 
(197
)
 
(180
)
 
(177
)
Provision for income taxes
5

 
4

 
29

 
1

 
10

 
—

 
1

 
3

Equity in income (loss) of ATMP JV
(2
)
 
(5
)
 
(3
)
 
—

 
—

 
—

 
—

 
—

Net income (loss)
(51
)
 
(406
)
 
69

 
(109
)
 
(102
)
 
(197
)
 
(181
)
 
(180
)
Net income (loss) per share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
$
(0.06
)
 
$
(0.50
)
 
$
0.09

 
$
(0.14
)
 
$
(0.13
)
 
$
(0.25
)
 
$
(0.23
)
 
$
(0.23
)
Diluted
$
(0.06
)
 
$
(0.50
)
 
$
0.08

 
$
(0.14
)
 
$
(0.13
)
 
$
(0.25
)
 
$
(0.23
)
 
$
(0.23
)
Shares used in per share calculation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
931

 
815

 
794

 
793

 
791

 
785

 
778

 
777

Diluted
931

 
815

 
821

 
793

 
791

 
785

 
778

 
777



(1) 
During the third quarter of 2016, the Company recorded a charge of $340 million, consisting of the $100 million payment under the Sixth Amendment and the $240 million value of the warrant under the Warrant Agreement issued in consideration of the Sixth Amendment. During 2015, the Company recorded a technology node transition charge of $33 million in the second quarter and an inventory write-down of $65 million in the third quarter.
(2) 
The Company recorded a pre-tax gain of $150 million on the sale of its 85% equity interest in ATMP JV during the second quarter of 2016. During the third quarter of 2016, as a result of certain purchase price adjustments, the Company recognized a charge of $4 million.