AMD 2012 Annual Report Download - page 56

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We use a 52 or 53 week fiscal year ending last Saturday in December. The years ended December 29, 2012,
December 31, 2011 and December 25, 2010 included 52 weeks, 53 weeks and 52 weeks. The extra week in 2011
did not have a material impact on our results of operations. References in this report to 2012, 2011 and 2010 refer
to the fiscal year unless explicitly stated otherwise.
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 2012, 2011 and 2010.
2012 2011 2010
(In millions)
Net revenue:
Computing Solutions .............................................. $4,005 $5,002 $4,817
Graphics ........................................................ 1,417 1,565 1,663
All Other ........................................................ — 1 14
Total net revenue ...................................................... $5,422 $6,568 $6,494
Operating income (loss):
Computing Solutions .............................................. $ (231) $ 556 $ 529
Graphics ........................................................ 105 51 149
All Other ........................................................ (930) (239) 170
Total operating income (loss) ............................................ $(1,056) $ 368 $ 848
Interest income ....................................................... 8 10 11
Interest expense ....................................................... (175) (180) (199)
Other income (expense), net ............................................. 6 (199) 311
Equity income (loss) and dilution gain in investee, net ........................ — 492 (462)
Income (loss) from continuing operations before income taxes .................. $(1,217) $ 491 $ 509
Computing Solutions
Computing Solutions net revenue of $4.0 billion in 2012 decreased by 20% compared to $5.0 billion in 2011
as a result of a 14% decrease in unit shipments and a 7% decrease in average selling price. Unit shipments of all
categories of products decreased. The decrease in the average selling price was primarily attributable to a
decrease in average selling price of our microprocessors for desktop PCs and servers. Unit shipments and average
selling price of our microprocessors for desktop PCs decreased due to challenging market conditions and the
increasing popularity of tablets as a consumer device of choice, which resulted in decreased demand for our
products. Unit shipments and average selling price of our microprocessors for servers decreased primarily due to
challenging market conditions.
Computing Solutions net revenue of $5.0 billion in 2011 increased 4% compared to net revenue of $4.8
billion in 2010, primarily as a result of a 16% increase in unit shipments partially offset by an 11% decrease in
average selling price. The increase in unit shipments was attributable to an increase in unit shipments of our
microprocessors, including APU products for mobile devices, as well as our chipset products. Unit shipments of
our microprocessors, including APU products for mobile devices increased due to strong demand for our Brazos
and Llano-based APU platforms. However, the increase in unit shipments in 2011 was limited by supply
constraints with respect to certain microprocessor products manufactured using the 32nm technology node.
Chipset unit shipments increased primarily due to an increase in overall unit shipments of our microprocessor
products. The decrease in overall average selling price was primarily attributable to a decrease in the average
selling price of our microprocessors for servers due to a shift in our product mix and competitive market
conditions as well as sales of our Brazos APU platforms, which have a lower average selling price than our other
processor products.
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