AMD 2008 Annual Report Download - page 145

As a result of the ATI acquisition, effective October 25, 2006, the Company had the following four
reportable segments through December 31, 2006:
• the Computation Products segment, which included microprocessors, AMD chipsets and related
revenue;
• the Embedded Products segment, which included 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.
From the first quarter of 2007 through the first quarter of 2008, 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 included 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 included graphics, video and multimedia products and related revenue; and
• the Consumer Electronics segment, which included 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 the second quarter of 2008, the Company decided to divest its Handheld and Digital Television
businesses units, which were previously part of the Consumer Electronics segment. As a result, the Company
classified these business units as discontinued operations in the Company’s financial statements. The CODM
began reviewing and assessing operating performance using the following reportable operating segments:
• the Computing Solutions segment, which includes microprocessors, chipsets and embedded processors
and related revenue; and
• the Graphics segment, which includes graphics, video and multimedia products and related revenue, as
well as revenue from royalties received in connection with sales of game console systems that
incorporate the Company’s graphics 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
operating segments. Such expenses and credits include employee stock-based compensation expense, profit
sharing expense, restructuring and ATI acquisition-related and integration charges and charges for goodwill and
intangible asset impairment.
During the fourth quarter of 2008, the Company determined that, based on ongoing negotiations related to
the divestiture of the Handheld business unit, the discontinued operations classification criteria for this business
unit were no longer met. As a result the Company classified the results of its Handheld business unit back into
continuing operations. The results of the Handheld business unit are included in the All Other category. Also, this
category included the sale of Personal Internet Communicator (PIC) products for the first three quarter of 2006,
when the manufacture of PIC products ceased.
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