AMD 2011 Annual Report Download - page 57

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Foundry
Foundry net revenue was $1.1 billion in 2009. Foundry operating loss was $433 million in 2009. In 2011
and 2010, we did not have a Foundry segment.
All Other
All Other revenue was immaterial in 2011, $14 million in 2010 and $66 million in 2009. All Other revenue
declined because as of 2009, we no longer developed new Handheld products. We decided to exit the Handheld
business after selling certain graphics and multimedia technology assets and intellectual property to Qualcomm
in the first quarter of 2009.
All Other operating loss of $239 million in 2011 included $98 million in restructuring charges, net, $90
million of stock-based compensation expense, $29 million related to amortization of acquired intangible assets
and a $24 million charge recorded in connection with a payment to GF primarily related to certain GF
manufacturing assets that did not benefit us.
All Other operating income of $170 million in 2010 included $283 million of income from the settlement of
our litigation with Samsung in the fourth quarter of 2010, a $30 million one-time benefit recognized in the first
quarter of 2010 related to the deconsolidation of GF, and $14 million of net revenue, partially offset by $87 million
of stock-based compensation expense and $61 million related to the amortization of acquired intangible assets,
All Other operating income of $968 million in 2009 included $1.2 billion of income from the settlement of
our litigation with Intel in the fourth quarter of 2009 and $66 million of net revenue, partially offset by stock-
based compensation expense of $69 million, $65 million in restructuring charges, net, $55 million of cost of
sales, $46 million in research and development expenses and $32 million in marketing, general and
administrative expenses.
Intersegment Eliminations
Intersegment eliminations represent eliminations during consolidation in revenue and in cost of sales and
profits on inventory between the Computing Solutions segment and the Foundry segment. For 2009,
intersegment eliminations of revenue were $1.1 billion and intersegment eliminations of cost of sales and profits
on inventory were $48 million. In 2011 and 2010, we did not have an Intersegment Eliminations category.
Comparison of Gross Margin, Expenses, Interest Income, Interest Expense, Other Income (Expense), Net,
Income Taxes and Equity Income (Loss) and Dilution Gain in Investee, Net
The following is a summary of certain consolidated statement of operations data for 2011, 2010 and 2009.
2011 2010 2009
(In millions, except for percentages)
Cost of sales ......................................................... $3,628 $3,533 $ 3,131
Gross margin ......................................................... 2,940 2,961 2,272
Gross margin percentage ................................................ 45% 46% 42%
Research and development .............................................. 1,453 1,405 1,721
Marketing, general and administrative ..................................... 992 934 994
Legal settlement ...................................................... — (283) (1,242)
Amortization of acquired intangible assets .................................. 29 61 70
Restructuring charges (reversals), net ...................................... 98 (4) 65
Interest income ....................................................... 10 11 16
Interest expense ....................................................... (180) (199) (438)
Other income (expense), net ............................................. (199) 311 166
Provision (benefit) for income taxes ....................................... (4) 38 112
Equity income (loss) and dilution gain in investee, net ........................ 492 (462) —
51