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

Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

Segment Reporting

3 Months Ended

Mar. 31, 2018

Management, including the Chief Operating Decision Maker, who is the Company’s Chief Executive Officer, reviews and assesses operating performance using segment net revenue and operating income 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 has the following two reportable segments:


•	the Computing and Graphics segment, which primarily includes desktop and notebook processors and chipsets, discrete and integrated graphics processing units (GPUs), professional GPUs. The Company also licenses portions of its IP portfolio.; and


•	the Enterprise, Embedded and Semi-Custom segment, which primarily includes server and embedded processors, semi-custom System-on-Chip (SoC) products, development services, technology for game consoles. The Company also licenses portions of its IP portfolio.

In addition to these reportable segments, the Company has an All Other category, which is not a reportable segment. This category primarily includes certain expenses and credits that are not allocated to any of the reportable segments because management does not consider these expenses and credits in evaluating the performance of the reportable segments. This category also includes employee stock-based compensation expense.

The following table provides a summary of net revenue and operating income by segment:



	Three Months Ended
	March 31, 2018			April 1, 2017
	(In millions)
Net revenue:
Computing and Graphics	$	1,115		$	573
Enterprise, Embedded and Semi-Custom	532			605
Total net revenue	$	1,647		$	1,178
Operating income (loss):
Computing and Graphics	$	138		$	(21	)
Enterprise, Embedded and Semi-Custom	14			55
All Other ⁽¹⁾	(32		)	(23		)
Total operating income	$	120		$	11

⁽¹⁾ All Other operating loss is related to stock-based compensation expense for the three months ended March 31, 2018 and April 1, 2017.