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Advanced Micro Devices, Inc.
Notes to Consolidated Financial Statements
December 25, 2010, December 26, 2009 and December 27, 2008
NOTE 1: Nature of Operations
Advanced Micro Devices, Inc. (the Company or AMD) is a global semiconductor company with facilities
throughout the world. References herein to the “Company” mean AMD and its subsidiaries, and for 2009 also
includes GLOBALFOUNDRIES (GF) and its subsidiaries. The Company provides
(i) x86 microprocessors, for the commercial and consumer markets, embedded microprocessors for
commercial, commercial client and consumer markets and chipsets for desktop and notebook PCs,
professional workstations and servers; and
(ii) graphics, video and multimedia products for desktop and notebook computers, including home media
PCs, professional workstations and servers and technology for game consoles.
During the fourth quarter of 2008, the Company completed the sale of its Digital Television business unit to
Broadcom Corporation. As a result, the Company no longer sells video processors used in digital television
products.
NOTE 2: Summary of Significant Accounting Policies
Fiscal Year. The Company uses a 52- to -53 week fiscal year ending on the last Saturday in December.
Fiscal 2010, 2009 and 2008 ended December 25, December 26 and December 27, respectively. Fiscal 2010, 2009
and 2008 all consisted of 52 weeks.
Principles of Consolidation. The consolidated financial statements include the Company’s accounts and
those of its wholly-owned subsidiaries. Upon consolidation, all significant intercompany accounts and
transactions are eliminated, and amounts pertaining to the noncontrolling ownership interests held by third
parties in the operating results and financial position of the Company’s subsidiaries are reported as
noncontrolling interest.
Beginning in the first quarter of 2010, the Company concluded that it is no longer the primary beneficiary of
GF. Accordingly, it ceased consolidating the results of operations and financial position of GF and started
accounting for GF under the equity method of accounting (See Note 3). Therefore, the users of the Company’s
consolidated financial statements should consider the effect of deconsolidation when comparing 2010 to the
periods prior to 2010.
Reclassifications. Certain reclassifications have been made to prior year balances in order to conform to
the current year’s presentation of financial information.
Use of Estimates. The preparation of consolidated financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of commitments and contingencies at the date of the financial
statements and the reported amounts of revenues and expenses during the reporting periods. Actual results are
likely to differ from those estimates, and such differences may be material to the financial statements. Areas
where management uses subjective judgment include, but are not limited to, revenue allowances, inventory
valuation, valuation of goodwill and acquisition-related intangible assets, impairment of long-lived assets,
including goodwill and acquisition-related intangible assets, valuation of investments in marketable securities
and deferred income taxes.
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