Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v2.4.0.6
Segment Reporting
 9 Months Ended
Sep. 29, 2012
Segment Reporting, Measurement Disclosures [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, dilution gain in investee 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 accelerated processing unit (APU), chipsets, 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:
 
 
 
Quarter Ended
 
Nine Months Ended
 
 
September 29, 2012
 
October 1,
2011
 
September 29, 2012
 
October 1,
2011
 
 
 
 
(In millions)
 
 
Net revenue:
 
 
 
 
 
 
 
 
Computing Solutions
 
$
927

 
$
1,286

 
$
3,176

 
$
3,693

Graphics
 
342

 
403

 
1,091

 
1,183

All Other
 
—

 
1

 
—

 
1

Total net revenue
 
$
1,269

 
$
1,690

 
$
4,267

 
$
4,877

Operating income (loss):
 
 
 

 
 
 

Computing Solutions
 
$
(114
)
 
$
149

 
$
92

 
$
391

Graphics
 
18

 
12

 
83

 
24

All Other
 
(35
)
 
(23
)
 
(809
)
 
(118
)
Total operating income (loss)
 
$
(131
)
 
$
138

 
$
(634
)
 
$
297