AMD 2009 Annual Report Download - page 58

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The following table provides a summary of net revenue and operating income (loss) by segment and income
(loss) from continuing operations before income taxes for 2009, 2008 and 2007. Information specific to the
Foundry segment and Intersegment Eliminations for periods prior to 2009 have not been recast to reflect the
segment changes noted above because it is not practicable to do so. Accordingly, 2009 information is not
comparable to prior period information.
2009 2008 2007
(In Millions)
Net revenue:
Computing Solutions ............................................. $4,131 $ 4,559 $ 4,702
Graphics ....................................................... 1,206 1,165 992
Foundry ....................................................... 1,101 — —
All Other ....................................................... 66 84 164
Intersegment Eliminations ......................................... (1,101) — —
Total net revenue .................................................... $5,403 $ 5,808 $ 5,858
Operating income (loss):
Computing Solutions ............................................. $ 127 $ (461) $ (712)
Graphics ....................................................... 50 12 (39)
Foundry ....................................................... (433) — —
All Other ....................................................... 968 (1,506) (1,559)
Intersegment Eliminations ......................................... (48) — —
Total operating income (loss) ........................................... 664 (1,955) (2,310)
Interest income ...................................................... 16 39 73
Interest expense ..................................................... (438) (391) (382)
Other income (expense), net ........................................... 166 (37) (118)
Equity in net income (loss) of investees .................................. — — (44)
Income (loss) from continuing operations before income taxes ................ $ 408 $(2,344) $(2,781)
Computing Solutions
Computing Solutions net revenue of $4.1 billion in 2009 decreased 9 percent compared to net revenue of
$4.6 billion in 2008. In 2008, Computing Solutions net revenue included $191 million in revenue from the
licensing of certain manufacturing process technology to a third party, which accounted for 4 percent of this
total. Without the effect of the process technology license revenue, Computing Solutions net revenue would have
decreased 5 percent primarily as a result of a 16 percent decrease in the average selling price partially offset by a
13 percent increase in unit shipments. The average selling price decreased primarily due to a decrease in the
average selling price of microprocessors, especially for notebook PCs, and a greater mix of chipsets, which
typically have a lower average selling price. Competitive market conditions and the macroeconomic challenges
that affected the global economy, especially in the first half of 2009, caused us to decrease the price of many of
our Computing Solutions products, and also contributed to a shift in our product mix to lower end
microprocessors. The increase in unit shipments was primarily attributable to an increase in demand for chipsets
and microprocessors for notebooks. Chipset unit shipments increased, especially in the second half of 2009, as
customers increasingly adopted AMD chipsets with our microprocessor products. Unit shipments of our
microprocessors for notebooks increased, especially in the fourth quarter of 2009, due to increased demand in the
overall notebook PC market, as end users increasingly demanded notebook PCs over desktop PCs.
Computing Solutions net revenue of $4.6 billion in 2008 decreased 3 percent compared to net revenue of
$4.7 billion in 2007. In 2008, Computing Solutions net revenue included $191 million from the licensing of
manufacturing process technology Without the effect of the process technology license revenue, Computing
Solutions net revenue would have decreased by $334 million or 7 percent compared to 2007 due to a 4 percent
decrease in the average selling price and a 3 percent decrease in unit shipments of our Computing Solutions
products. The decrease in the average selling price was primarily due to a decrease in the average selling price
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