Advanced Micro Devices, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Supplemental Balance Sheet Information

Supplemental Balance Sheet Information

3 Months Ended

Apr. 01, 2017

Balance Sheet Related Disclosures [Abstract]

Inventories



	April 1, 2017		December 31, 2016
	(In millions)
Raw materials	$	19	$	11
Work in process	598		564
Finished goods	222		176
Total inventories, net	$	839	$	751

Property, Plant and Equipment



	April 1, 2017			December 31, 2016
	(In millions)
Leasehold improvements	$	147		$	148
Equipment	726			714
Construction in progress	32			19
Property, plant and equipment, gross	905			881
Accumulated depreciation and amortization	(725		)	(717		)
Total property, plant and equipment, net	$	180		$	164

The Company incurs costs for the fabrication of masks used by its foundry partners to manufacture its products. Beginning the first fiscal quarter of 2017, the Company capitalizes mask costs that are expected to be utilized in production manufacturing as the Company’s product development process has become more predictable and thus supports capitalization of the mask. The capitalized mask costs begin depreciating to Cost of Sales once the products go into production. Depreciation is straight lined over a two year period which is the expected useful life of the mask. Previously mask sets were expensed to research and development.

Other Assets



	April 1, 2017		December 31, 2016
	(In millions)
Software technology and licenses, net	$	222	$	232
Other	52		47
Total other assets	$	274	$	279

Accrued Liabilities



	April 1, 2017		December 31, 2016
	(In millions)
Accrued compensation and benefits	$	114	$	116
Marketing programs and advertising expenses	93		102
Software technology and licenses payable	45		24
Other	133		149
Total accrued liabilities	$	385	$	391