AMD 2007 Annual Report Download - page 134

Table of Contents
Prior to December 21, 2005, the Company had the following three reportable segments:
• the Computation Products segment, which included microprocessor products for desktop and mobile PCs, servers and workstations and AMD chipset
products;
• the Memory Products segment, which included Spansion Flash memory products; and
• the Personal Connectivity Solutions segment, which consisted of embedded processors for global commercial and consumer markets.
On December 21, 2005, Spansion completed its IPO. As a result of Spansion’s IPO, the Company’s financial results of operations included Spansion’s
financial results of operations as a consolidated subsidiary through December 20, 2005. From December 21, 2005, Spansion’s operating results and financial
position were not consolidated as part of the Company’s financial results. Instead, the Company applied the equity method of accounting to reflect its investment
in Spansion from December 21, 2005 through September 20, 2007, at which time the Company changed its accounting for this investment from the equity
method to accounting for this investment as “available-for-sale” marketable securities. Accordingly, as of December 21, 2005 the Company no longer had the
Memory Products segment, and the operating results for the year 2007 are not fully comparable with the results for 2006 and 2005.
Following Spansion’s IPO, from December 26, 2005 through October 24, 2006, the Company had two reportable segments:
• the Computation Products segment, which included microprocessors, AMD chipsets and related revenue; and
• the Embedded Products segment, which included embedded processors and related revenue.
As a result of the ATI acquisition effective October 25, 2006, the Company had the following four reportable segments:
• the Computation Products segment, which included microprocessors, AMD chipsets and related revenue;
• the Embedded Products segment, which includes embedded processors and related revenue;
• the Graphics and Chipsets segment, which included graphics, video and multimedia products and chipsets sold by ATI prior to the acquisition 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 related revenue and revenue for royalties received in connection with sales of game console systems that incorporate the Company’s
technology.
Starting in the first quarter of 2007, in conjunction with the integration of ATI’s operations, the CODM began reviewing and addressing operating
performance using the following three reportable segments:
• the Computing Solutions segment, which includes what was formerly the Computation Products segment and the Embedded Products segment as well
as revenue from sales of ATI chipsets;
• the Graphics segment, which includes graphics, video and multimedia products and related revenue; and
• the Consumer Electronics segment, which includes products used in handheld devices, digital televisions and other consumer electronics as well as
revenue from royalties received in connection with sales of game console systems that incorporate the Company’s technology.
In addition to the reportable segments, the Company has 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 the CODM does not consider these expenses and credits in evaluating the performance
of the
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Source: ADVANCED MICRO DEVIC, 10-K, February 26, 2008