AMD 2003 Annual Report Download - page 89

Table of Contents
NOTE 9: Segment Reporting
Management reviews and assesses operating performance using segment revenues and operating income before interest, taxes and minority interest. These
performance measures include the allocation of expenses to the operating segments based on management judgment. Prior to the third quarter of 2003, the
Company had two reportable segments, the Core Products and Foundry Services segments. Primarily as a result of the formation of FASL LLC, the Company
re-evaluated its reportable segments under SFAS 131.
Beginning in the third quarter of 2003, the Company changed its reportable segments to: the Computation Products segment, which includes
microprocessor products for desktop and mobile PCs, servers and workstations and chipset products, and the Memory Products segment, which includes Flash
memory products.
The All Other category is not a reportable segment, but rather it includes other small operating segments (Personal Connectivity Solutions products, which
include low power MIPS and x86 solutions, and Foundry Services, which included fees from our former voice communications and programmable logic products
subsidiaries) that represent less than ten percent of the Company’s consolidated revenues and assets individually and in the aggregate. This category also includes
certain operating expenses and credits that are not allocated to the operating segments. Prior period segment information has been reclassified to conform to the
current period presentation. However, as FASL LLC did not exist prior to June 30, 2003, the Company’s results of operations for prior periods did not include
the consolidation of FASL LLC’s operations. Accordingly, the segment operating information for the Memory Products segment for the year ended December
28, 2003 is not comparable to the reclassified segment information for all prior periods presented.
The following table is a summary of operating income (loss) by segment for 2003, 2002 and 2001.
2003 2002 2001
(Thousands)
Computation Products
Revenue $ 1,959,759 $ 1,756,016 $ 2,465,576
Operating income (loss) $ (23,194) $ (660,596) $ (190,609)
Memory Products
Revenue 1,418,948 740,895 1,132,921
Operating income (loss) (189,552) (159,585) 267,817
All Other
Revenue 140,461 200,118 293,257
Operating income (loss) (20,638) (405,205) (135,466)
Total AMD
Revenue 3,519,168 2,697,029 3,891,754
Operating income (loss) (233,384) (1,225,386) (58,258)
Interest income and other, net 21,116 32,132 25,695
Interest expense (109,960) (71,349) (61,360)
Minority interest in loss of subsidiary 44,761 — —
Provision (benefit) for income taxes 2,936 44,586 (14,463)
Equity in net income of Manufacturing Joint Venture 5,913 6,177 18,879
Net loss $ (274,490) $ (1,303,012) $ (60,581)
The Company does not discretely allocate assets to its operating segments, nor does management evaluate operating segments using discrete asset
information.
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Source: ADVANCED MICRO DEVIC, 10-K, March 09, 2004