AMD 2014 Annual Report Download - page 102

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performance of the reportable segments. Also included in this category are amortizations of acquired intangible
assets, employee stock-based compensation expense, net restructuring and other special charges, workforce
rebalancing severance charges, goodwill impairment charges, significant or unusual lower of cost or market
inventory adjustments, loss on debt repurchases, a charge related to the limited waiver of exclusivity from GF
and a net gain from licenses and settlement agreements regarding patent-related matters. The Company also
reported the results of former businesses in the All Other category because the operating results were not
material. In addition, during 2014, the Company reclassified $273 million of lower of cost or market inventory
adjustment previously recorded in Computing and Graphics segment in 2012 to All Other category to conform
with the current year’s presentation.
The following table provides a summary of net revenue and operating loss by segment and income (loss)
before income taxes for 2014, 2013 and 2012. The prior period results have been recast to reflect the Company’s
new reportable segments.
2014 2013 2012
(In millions)
Net revenue:
Computing and Graphics .............................. $ 3,132 $ 3,720 $ 4,724
Enterprise, Embedded and Semi-Custom .................. 2,374 1,577 698
All Other ........................................... — 2 —
Total net revenue ......................................... $ 5,506 $ 5,299 $ 5,422
Operating income (loss):
Computing and Graphics .............................. $ (76) $ (101) $ 129
Enterprise, Embedded and Semi-Custom .................. 399 295 18
All Other ........................................... (478) (91) (1,203)
Total operating income (loss) ............................... $ (155) $ 103 $(1,056)
Interest income .......................................... 3 5 8
Interest expense .......................................... (177) (177) (175)
Other income (expense), net ................................ (69) (5) 6
Loss before income taxes .................................. $ (398) $ (74) $(1,217)
The Company does not discretely allocate assets to its operating segments, nor does management evaluate
operating segments using discrete asset information.
The Company’s operations outside the United States include research and development activities; assembly,
test, mark and packaging activities; and sales, marketing and administrative activities. The Company conducts
product and system research and development activities for its products in the United States, with additional
design and development engineering teams located in China, Canada, India, Singapore, Taiwan, and Israel. The
Company’s assembly, test, mark and packaging facilities are located in Malaysia and China. The Company’s
material sales and marketing offices are located in the United States, Latin America, Europe and Asia.
The following table summarizes sales to external customers by country, which is based on the billing
location of the customer:
2014 2013 2012
(In millions)
United States ............................... $ 1,030 $ 801 $ 407
Europe .................................... 325 460 469
China ..................................... 2,324 2,519 3,131
Singapore .................................. 371 610 856
Japan ...................................... 1,324 710 305
Other countries .............................. 132 199 254
Total sales to external customers .................... $ 5,506 $ 5,299 $ 5,422
96