Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting (Notes)

v2.4.0.8
Segment Reporting (Notes)
 6 Months Ended
Jun. 29, 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.

Reportable Segment Name Change. During the second quarter of 2013, the Graphics segment was renamed as the "Graphics and Visual Solutions" segment. Management believes that the new reportable segment nomenclature provides greater clarity on the product lines that comprise this segment and reflects the growing importance of gaming and semi-custom offerings to AMD. There is no change to the composition of this reportable segment from what the Company previously reported for the Graphics segment.
The Company uses the following two reportable segments:
•
the Computing Solutions segment, which includes x86 microprocessors, as standalone devices or as incorporated as an accelerated processing unit (APU), chipsets, embedded processors and dense servers; and
•
the Graphics and Visual Solutions segment, which includes graphics processing units (GPU), including professional graphics, and semi-custom products, as well as revenue received in connection with development services and game console royalties.
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, employee stock-based compensation expense, restructuring and other special charges, net 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 category:
 
 
 
Quarter Ended
 
Six Months Ended
 
 
June 29,
2013
 
June 30,
2012
 
June 29,
2013
 
June 30,
2012
 
 
(In millions)
Net revenue:
 
 
 
 
 
 
 
 
Computing Solutions
 
$
841

 
$
1,046

 
$
1,592

 
$
2,249

Graphics and Visual Solutions
 
320

 
367

 
657

 
749

Total net revenue
 
$
1,161

 
$
1,413

 
$
2,249

 
$
2,998

Operating income (loss):
 
 
 

 
 
 

Computing Solutions
 
$
2

 
$
82

 
$
(37
)
 
$
206

Graphics and Visual Solutions
 
—

 
31

 
16

 
65

All Other
 
(31
)
 
(36
)
 
(106
)
 
(774
)
Total operating income (loss)
 
$
(29
)
 
$
77

 
$
(127
)
 
$
(503
)