AMD 2009 Annual Report Download - page 57

• 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 products, as well as revenue from royalties received in
connection with sales of game console systems that incorporate our graphics technology.
In the second quarter of 2008, we decided to divest our Handheld and Digital Television business units,
which were previously part of the Consumer Electronics segment. As a result, we classified these business units
as discontinued operations in our financial statements and 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 received in connection with the development and sale of game console systems that
incorporate our graphics technology.
During the fourth quarter of 2008, we 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 we classified the results of the Handheld business unit back into continuing
operations.
In the first quarter of 2009, as a result of the formation of GF, we 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 our graphics technology; and
• the Foundry segment, which includes 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, we have 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 we do 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 we
recognized from our settlement agreement with Intel and the results of the Handheld business unit, which consist
of revenue from sales of AMD Imageon media processors and other handheld products, are also reported in the
All Other category.
Starting in the first quarter of 2009, we also have 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. Beginning
in the first quarter of 2010, we will no longer report the Foundry segment and Intersegment Eliminations
category due to the deconsolidation of GF.
We use a 52- to 53-week fiscal year. Our fiscal year ends on the last Saturday in December. The years ended
December 26, 2009, December 27, 2008 and December 29, 2007 each included 52 weeks. References in this
report to 2009, 2008 and 2007 refer to the fiscal year unless explicitly stated otherwise.
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