AMD 2010 Annual Report Download - page 57

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The following table provides a summary of net revenue and operating income (loss) by segment and income
(loss) from continuing operations before income taxes for 2010, 2009 and 2008. Information specific to the
Foundry segment and Intersegment Eliminations for 2008 have not been recast to reflect the Foundry segment
changes noted above for 2009 because it is not practicable to do so. Accordingly, 2009 information is not
comparable to prior period information.
2010 2009 2008
(In millions)
Net revenue:
Computing Solutions .............................................. $4,817 $ 4,170 $ 4,591
Graphics ........................................................ 1,663 1,167 1,132
Foundry ........................................................ — 1,101 —
All Other ....................................................... 14 66 85
Intersegment Eliminations .......................................... — (1,101) —
Total net revenue ..................................................... $6,494 $ 5,403 $ 5,808
Operating income (loss):
Computing Solutions .............................................. $ 529 $ 142 $ (458)
Graphics ........................................................ 149 35 9
Foundry ........................................................ — (433) —
All Other ....................................................... 170 968 (1,506)
Intersegment Eliminations .......................................... — (48) —
Total operating income (loss) ........................................... $ 848 $ 664 $(1,955)
Interest income ...................................................... 11 16 39
Interest expense ...................................................... (199) (438) (391)
Other income (expense), net ............................................ 311 166 (37)
Equity in net loss of investee ............................................ (462) — —
Income (loss) from continuing operations before income taxes ................. $ 509 $ 408 $(2,344)
Computing Solutions
Computing Solutions net revenue of $4.8 billion in 2010 increased 16% compared to net revenue of $4.2
billion in 2009, primarily as a result of an 18% increase in unit shipments partially offset by a 2% decrease in
average selling price. The increase in unit shipments was attributable to an increase in unit shipments of our
microprocessor products for notebook PCs as well as chipset products, resulting primarily from an improved
economic environment. In addition, chipset unit shipments increased as customers increasingly adopted AMD
chipsets with our microprocessor products, while unit shipments of our microprocessors for notebook PCs
increased due to increased demand from existing and new customers for our new notebook platforms. Average
selling price decreased due to a decrease in average selling price of embedded processors, partially offset by an
increase in average selling price of our chipsets and microprocessor products. Average selling price of embedded
processors decreased due to a shift in our product mix to lower-end, legacy products. Average selling price of
microprocessor products increased due to a favorable shift in our product mix to higher end microprocessors,
especially for servers, as customers continued to transition to our AMD Opteron™ 6000 series server platforms.
Average selling price of our chipsets products increased primarily due to a shift in product mix.
Computing Solutions net revenue of $4.2 billion in 2009 decreased 9% compared to net revenue of $4.6
billion in 2008. In 2008, Computing Solutions net revenue included $191 million in revenue from the licensing of
certain manufacturing process technology to a third party, which accounted for 4% of this total. Without the
effect of the process technology license revenue, Computing Solutions net revenue would have decreased 5%
primarily as a result of a 16% decrease in the average selling price partially offset by a 13% increase in unit
shipments. The average selling price decreased primarily due to a decrease in the average selling price of
microprocessors, especially for notebook PCs, and a greater mix of chipsets, which typically have a lower
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