AMD 2009 Annual Report Download - page 123

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Interest Expense
2009 2008 2007
(In millions)
Total interest charges .................................... $439 $400 $405
Less: interest capitalized .................................. (1) (9) (23)
Interest expense ......................................... $438 $391 $382
The Company recorded $1 million of capitalized interest during 2009 related to GF’s Fab 2 building site in
Saratoga County, New York. The Company has capitalized interest primarily in connection with the construction
of the Fab 36 wafer fabrication facility and equipment facilitization activities in Dresden, Germany and in
connection with the construction of its corporate campus in Austin, Texas. The Company discontinued
capitalizing interest for Fab 36 in the first quarter of 2008 when it was in full production, and the Company
discontinued capitalizing interest for the Austin office facility in the fourth quarter of 2007, when the
construction was completed.
Other Income (Expense), Net
2009 2008 2007
(In millions)
Net gain (loss) on debt redemption ......................... $169 $ 33 $ (22)
Gain on sale of certain Handheld assets ..................... 28 — —
Gain on legal settlement ................................. 25 — —
Loss on real estate transfer taxes related to GF ................ (17) — —
Charge related to AMTC joint venture ...................... (10) — —
Impairment charges related to Spansion investment ............ (3) (53) (111)
Foreign exchange loss ................................... (27) — —
Gain (loss) on adjustments of ARS to fair value .............. 10 (24) —
Gain (loss) on adjustments of UBS put option to fair value ...... (9) 11 —
Gain on sale of vacant land in Sunnyvale, California ........... — — 19
Other ................................................ — (4) (4)
Other income (expense), net .............................. $166 $ (37) $(118)
NOTE 14: Segment Reporting
Management, including the Chief Operating Decision Maker (CODM), 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), equity in net income (loss) of investees and income taxes. These
performance measures include the allocation of expenses to the operating segments based on management’s
judgment.
From the first quarter of 2007 through the first quarter of 2008, in conjunction with the integration of ATI’s
operations, the CODM began reviewing and addressing operating performance using the following three
reportable segments:
• the Computing Solutions segment, which included microprocessors, chipsets and embedded processors
and related revenue;
• the Graphics segment, which included graphics, video and multimedia products and related revenue; and
• the Consumer Electronics segment, which included products used in handheld devices, digital
televisions and other consumer electronics as well as revenue from royalties received in connection with
sales of game console systems that incorporate the Company’s technology.
115