AMD 2014 Annual Report Download - page 52

In addition to these reportable segments, we have an All Other category, which is not a reportable segment.
This category primarily includes certain expenses and credits that are not allocated to any of the reportable
segments because management does not consider these expenses and credits in evaluating the performance of the
reportable segments. Also included in this category are amortization of acquired intangible assets, employee
stock-based compensation expense, net restructuring and other special charges, workforce rebalancing severance
charges, goodwill impairment charge, 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. We also reported the results of former businesses in
the All Other category because the operating results were not material. In addition, during 2014, we 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.
We intend the discussion of our financial condition and results of operations that follows to provide
information that will assist you in understanding our financial statements, the changes in certain key items in
those financial statements from year to year, the primary factors that resulted in those changes and how certain
accounting principles, policies and estimates affect our financial statements.
We use a 52 or 53 week fiscal year ending on the last Saturday in December. The years ended December 27,
2014, December 28, 2013 and December 29, 2012 each included 52 weeks. References in this report to 2014,
2013 and 2012 refer to the fiscal year unless explicitly stated otherwise.
The following table provides a summary of net revenue and operating income (loss) by segment and income
(loss) before income taxes for 2014, 2013 and 2012. The prior period results have been recast to reflect our 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)
Computing and Graphics
Computing and Graphics net revenue of $3.1 billion in 2014 decreased by 16% compared to $3.7 billion in
2013 as a result of a 27% decrease in unit shipments, partially offset by a 15% increase in average selling price.
The decrease in unit shipments was primarily attributable to lower unit shipments of our microprocessor products
for desktop and notebook PCs and chipsets due to challenging consumer PC market conditions and our chipsets
being integrated into our APU products. The increase in average selling price was primarily attributable to an
increase in average selling price of our microprocessor products due to improved product mix of our
microprocessor products for desktop and notebook PCs.
46