AMD 2010 Annual Report Download - page 120

• the Graphics segment, which included graphics, video and multimedia products and related revenue, as
well as revenue received in connection with the development and sale of game console systems that
incorporate the Company’s graphics technology.
In 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.
In the first quarter of 2009, as a result of the formation of GF, the Company began reviewing and assessing
operating performance using the following reportable segments:
• the Computing Solutions segment, which included microprocessors, chipsets and embedded processors
and related revenue;
• the Graphics segment, which included graphics, video and multimedia products and related revenue as
well as revenue received in connection with the development and sale of game console systems that
incorporate its graphics technology; and
• the Foundry segment, which included the operating results attributable to front end wafer manufacturing
operations and related activities, including the operating results of GF from March 2, 2009 to
December 26, 2009.
In addition to these reportable segments, the Company had an All Other category, which was not a
reportable segment. This category included certain expenses and credits that were not allocated to any of the
operating segments because management did not consider these expenses and credits in evaluating the
performance of the operating segments. These expenses were non-Foundry segment related expenses and
included impairment of goodwill and acquired intangible assets, employee stock-based compensation expense,
restructuring charges and amortization of acquired intangible assets. The Company also reported results of the
Handheld business unit in the All Other category because the operating results of this business unit were not
material. The Handheld business unit consisted of the AMD Imageon™ media processor brand and handheld
products that were part of the Handheld business unit prior to the sale of certain graphics and multimedia
technology assets and intellectual property to Qualcomm Incorporated during the first quarter of 2009. The
Company also had an Intersegment Eliminations category, which was also not a reportable segment. This
category included intersegment eliminations for revenue, cost of sales and profits on inventory related to
transactions between the Computing Solutions segment and the Foundry segment.
Beginning in the first quarter of 2010, as a result of the deconsolidation of GF, the Company no longer had a
Foundry segment or an Intersegment Eliminations category. Therefore, the Company started using the following
two reportable 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 received in connection with the development and sale of game console systems that
incorporate the Company’s graphics technology.
In addition, starting in the first quarter of 2010, the Company began accounting for the embedded graphics
business under the Computing Solutions segment. Previously, operating results related to this business were
recorded as part of the Graphics segment. Information for prior periods has been recast to reflect this change.
The Company continues to have an All Other category, as described above, and the results of the Handheld
business unit continue to be reported in this category because it expects that the operating results of this business
unit will continue to be immaterial.
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