AMD 2011 Annual Report Download - page 54

additional tax benefit or charge will result. We recognize potential accrued interest and penalties related to
unrecognized tax benefits as interest expense and income tax expense, respectively.
Results of Operations
We intend the discussion of our financial condition and results of operations that follows to provide
information that will assist you in understanding our financial statements, the changes in certain key items in
those financial statements from year to year, the primary factors that resulted in those changes and how certain
accounting principles, policies and estimates affect our financial statements.
We review and assess operating performance using segment net revenues and operating income (loss)
before interest, other income (expense), net, equity income (loss) and dilution gain in investee, net and income
taxes. These performance measures include the allocation of expenses to the operating segments based on
management’s judgment.
In the first quarter of 2009, as a result of the formation of GF, we 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 our graphics technology; and
• the Foundry segment, which included 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, we 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 employee stock-based
compensation expense, restructuring charges and amortization of acquired intangible assets. We also reported the
results of the Handheld business unit in the All Other category because the operating results of this business unit
were not material. We 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, we no longer had a Foundry
segment or an Intersegment Eliminations category. We began reviewing and assessing operating performance
using the following reportable segments:
• the Computing Solutions segment, which includes microprocessors, as standalone devices or as
incorporated as an APU, chipsets, and embedded microprocessors, embedded GPUs 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 our graphics technology.
We continue to have an All Other category, as described above.
We use a 52 or 53 week fiscal year ending last Saturday in December. The years ended December 31, 2011,
December 25, 2010 and December 26, 2009 included 53 weeks, 52 weeks and 52 weeks, respectively. However,
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