AMD 2014 Annual Report Download - page 56

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Marketing, General and Administrative Expenses
Marketing, general and administrative expenses of $604 million in 2014 decreased by $70 million, or 10%,
compared to $674 million in 2013. The decrease was primarily due to an $89 million decrease in marketing,
general and administrative expenses attributable to our Computing and Graphics segment, partially offset by a
$15 million increase in marketing, general and administrative expenses attributable to our Enterprise, Embedded
and Semi-Custom segment and a $5 million increase in the All Other category related to a workforce rebalancing
severance charge recorded in the first quarter of 2014. Marketing, general and administrative expenses
attributable to our Computing and Graphics segment decreased primarily due to a $61 million decrease in sales
and marketing activities and a $25 million decrease in other general and administrative expenses. Marketing,
general and administrative expenses attributable to our Enterprise, Embedded and Semi-Custom segment
increased primarily due to an $8 million increase in sales and marketing activities and a $5 million increase in
other general and administrative expenses.
Marketing, general and administrative expenses of $674 million in 2013 decreased by $149 million, or 18%,
compared to $823 million in 2012. The decrease was primarily due to a $154 million decrease in marketing,
general and administrative expenses attributable to our Computing and Graphics segment and a $6 million
decrease in the All Other category due to the absence of SeaMicro acquisition-related costs recorded in 2012,
partially offset by a $12 million increase in marketing, general and administrative expenses attributable to our
Enterprise, Embedded and Semi-Custom segment. Marketing, general and administrative expenses attributable to
our Computing and Graphics segment decreased primarily due to a $93 million decrease in sales and marketing
activities and a $72 million decrease in other general and administrative expenses, partially offset by a $10
million increase in other employee compensation and benefit expense. Marketing, general and administrative
expenses attributable to our Enterprise, Embedded and Semi-Custom Solutions segment increased primarily due
to a $33 million increase in other general and administrative expenses, partially offset by a $20 million decrease
in sales and marketing activities.
Legal Settlements
During the fourth quarter of 2013, we entered into licenses and settlement agreements regarding patent-
related matters for which we received in aggregate $48 million in net cash, which we recorded as an offset to
operating expenses. At the time we entered into the agreements, we did not have any future obligations that we
were required to perform in order to earn the settlement payments. Accordingly, we recognized the entire
settlement amount in our operating results for the fourth quarter of 2013.
Amortization of Acquired Intangible Assets
Amortization of acquired intangible assets was $14 million in 2014, $18 million in 2013 and $14 million in
2012. The decrease from 2013 to 2014 was due to the reduced amortization base amount of acquired intangible
assets of ATI. The increase from 2012 to 2013 was due to amortization of the intangible assets of SeaMicro,
which we acquired in 2012.
Restructuring and Other Special Charges, Net
Effects of Restructuring Plans
2014 Restructuring Plan
In October 2014, we implemented a restructuring plan designed to improve operating efficiencies. The plan
involved a reduction of global headcount by approximately 6%, largely completed by the end of 2014, and an
alignment of our real estate footprint with the reduced headcount, largely expected to be completed by the end of
first half of 2015. We recorded a $57 million restructuring charge in the fourth quarter of 2014, which consisted
of $44 million for severance and costs related to the continuation of certain employee benefits, $6 million for
contract or program termination costs, $1 million for facilities related costs and $6 million for asset impairments,
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