AMD 2013 Annual Report Download - page 104

NOTE 13: Segment Reporting
Management, including the Chief Operating Decision Maker, who is the Company’s Chief Executive
Officer, reviews and assesses operating performance using segment net revenues and operating income (loss)
before interest, other income (expense), net and income taxes. These performance measures include the
allocation of expenses to the operating segments based on management’s judgment.
The Company uses the following two reportable segments:
• the Computing Solutions segment, comprised of x86 microprocessors, as standalone devices or as
incorporated as an APU, chipsets, embedded processors and dense servers; and
• the Graphics and Visual Solutions segment, comprised of GPUs, including professional graphics, semi-
custom SOC products, revenue from development services and royalties for game consoles.
In addition to these reportable segments, the Company has an All Other category, which is not a reportable
segment. This category includes certain expenses and credits that are not allocated to any of the operating
segments because management does not consider these expenses and credits in evaluating the performance of the
operating segments. Also included in this category are amortizations of acquired intangible assets, employee
stock-based compensation expense, restructuring and other special charges, net, a charge related to the limited
waiver of exclusivity from GF and legal settlements, net. The Company also reported the results of former
businesses in the All Other category because the operating results were not material.
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 2013, 2012 and 2011.
2013 2012 2011
(In millions)
Net revenue:
Computing Solutions ................................... $3,104 $ 4,005 $5,002
Graphics and Visual Solutions ............................ 2,193 1,417 1,565
All Other ............................................. 2 — 1
Total net revenue ........................................... $5,299 $ 5,422 $6,568
Operating income (loss):
Computing Solutions ................................... $ (22) $ (231) $ 556
Graphics and Visual Solutions ............................ 216 105 51
All Other ............................................. (91) (930) (239)
Total operating income (loss) ................................. $ 103 $(1,056) $ 368
Interest income ............................................ 5 8 10
Interest expense ............................................ (177) (175) (180)
Other income (expense), net .................................. (5) 6 (199)
Dilution gain in investee, net ................................. — — 492
Income (loss) from continuing operations before income taxes ....... $ (74) $(1,217) $ 491
The Company does not discretely allocate assets to its operating segments, nor does management evaluate
operating segments using discrete asset information.
The Company’s operations outside the United States include research and development activities; assembly,
test, mark and packaging activities; and sales, marketing and administrative activities. The Company conducts
product and system research and development activities for its products in the United States, with additional
design and engineering teams in China, Canada, India, Singapore, Taiwan, and Israel. The Company’s assembly,
test, market and packaging facilities are located in Malaysia and China. The Company’s material sales and
marketing offices are located in the United States, Latin America, Europe and Asia.
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