AMD 2009 Annual Report Download - page 124

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In the second quarter of 2008, the Company decided to divest its Handheld and Digital Television
businesses units, which were previously part of the Consumer Electronics segment. As a result, the Company
classified these business units as discontinued operations in the Company’s financial statements. The CODM
began reviewing and assessing operating performance using the following reportable operating segments:
• the Computing Solutions segment, which included microprocessors, chipsets and embedded processors
and related revenue; and
• the Graphics segment, which included graphics, video and multimedia products and related revenue, as
well as revenue from royalties received in connection with sales of game console systems that
incorporate the Company’s graphics technology.
During the fourth quarter of 2008, the Company determined that, based on ongoing negotiations related to
the divestiture of the Handheld business unit, the discontinued operations classification criteria for this business
unit were no longer met. As a result the Company classified the results of its Handheld business unit back into
continuing operations.
In the first quarter of 2009, as a result of the formation of GF, the Company began reviewing and assessing
operating performance using the following reportable operating segments:
• the Computing Solutions segment, which includes microprocessors, chipsets and embedded processors
and related revenue;
• the Graphics segment, which includes graphics, video and multimedia products and related revenue as
well as revenue received in connection with the development and sale of game console systems that
incorporate its graphics technology; and
• the Foundry segment, which includes the operating results attributable to front end wafer manufacturing
operations and related activities, including the operating results of GF from March 2, 2009 to
December 26, 2009.
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 the CODM does not consider these expenses and credits in evaluating the performance of the
operating segments. Such expenses are non-Foundry segment related expenses and include employee stock-based
compensation expense, restructuring charges and impairment charges for goodwill and intangible assets. The
income the Company recognized from its settlement agreement with Intel and the results of the Handheld
business unit, which consists of revenue from sales of AMD Imageon media processors and other handheld
products, are also reported in the All Other category.
From the first quarter of 2009 through the fourth quarter of 2009, the Company also had an Intersegment
Eliminations category, which is also not a reportable segment. This category includes intersegment eliminations
for revenue, cost of sales and profits on inventory related to transactions between the Computing Solutions
segment and the Foundry segment.
116