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In the second quarter of 2008, we decided to divest our Handheld and Digital Television business units,
which were previously part of the Consumer Electronics segment. As a result, we classified these business units
as discontinued operations in our financial statements and 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 the sale of game console systems that
incorporate our graphics technology.
In addition to the reportable segments, we have 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 we do not consider these expenses and credits in evaluating the performance of the operating segments.
Such expenses include employee stock-based compensation expense, profit sharing expense, restructuring, ATI
acquisition-related and integration charges and charges for goodwill and intangible asset impairment.
During the fourth quarter of 2008, we 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 we classified the results of the Handheld business unit back into continuing
operations. The results of the Handheld business unit are reported in the All Other category. Also, this category
included the sale of Personal Internet Communicator (PIC) products for the first three quarters of 2006, after
which, the manufacturing of PIC products ceased.
We use a 52- to 53-week fiscal year. Prior to December 31, 2006, our fiscal year ended on the last Sunday in
December. Commencing in 2007, our fiscal year ends on the last Saturday in December. The years ended
December 27, 2008 and December 29, 2007 each included 52 weeks, and the year ended December 31, 2006
consisted of 53 weeks. References in this report to 2008, 2007 and 2006 refer to the fiscal year unless explicitly
stated otherwise.
The following is a summary of our net revenue and operating income (loss), by segment, from continuing
operations, for 2008, 2007 and 2006. This segment information has been reclassified to conform to the reportable
segment structure adopted in the fourth quarter of 2008.
2008 2007 2006
(In millions)
Computing Solutions
Net revenue ..................................................... $4,559 $ 4,702 $5,367
Operating income (loss) ........................................... (461) (712) 679
Graphics
Net revenue ..................................................... 1,165 992 189
Operating income (loss) ........................................... 12 (39) (6)
All Other
Net revenue ..................................................... 84 164 71
Operating income (loss) ........................................... (1,506) (1,559) (690)
Total
Net revenue ..................................................... 5,808 5,858 5,627
Operating income (loss) ........................................... $(1,955) $(2,310) $ (17)
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