AMD 2015 Annual Report Download - page 53

Download and view the complete annual report

Please find page 53 of the 2015 AMD annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 130

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130

Results of Operations
Management, including the Chief Operating Decision Maker, who is our Chief Executive Officer, reviews
and assesses our operating performance using segment net revenue 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. In connection with our continued strategic
transformation, effective July 1, 2014, we realigned our organizational structure. As a result of this
organizational change, we have the following two reportable segments:
• the Computing and Graphics segment, which primarily includes desktop and notebook processors and
chipsets, discrete GPUs and professional graphics; and
• the Enterprise, Embedded and Semi-Custom segment, which primarily includes server and embedded
processors, semi-custom SoC products, engineering services and royalties.
In addition to these reportable segments, we have an All Other category, which is not a reportable segment.
This category primarily includes certain expenses and credits that are not allocated to any of the reportable
segments because management does not consider these expenses and credits in evaluating the performance of the
reportable segments. Also included in this category are amortization of acquired intangible assets, employee
stock-based compensation expense, restructuring and other special charges, net, technology node transition
charge, workforce rebalancing severance charges, goodwill impairment charge, significant or unusual lower of
cost or market inventory adjustments and a net gain from licenses and settlement agreements regarding patent-
related matters. We also reported the results of former businesses in the All Other category because the operating
results were not material.
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 use a 52 or 53 week fiscal year ending on the last Saturday in December. The years ended December 26,
2015, December 27, 2014 and December 28, 2013 each included 52 weeks. References in this report to 2015,
2014 and 2013 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) before income taxes for 2015, 2014 and 2013. The results prior to July 1, 2014 have been recast to reflect
our new reportable segments.
2015 2014 2013
(In millions)
Net revenue:
Computing and Graphics ............................................ $1,805 $3,132 $3,720
Enterprise, Embedded and Semi-Custom ............................... 2,186 2,374 1,577
All Other ......................................................... — — 2
Total net revenue ...................................................... $3,991 $5,506 $5,299
Operating income (loss):
Computing and Graphics ............................................ $ (502) $ (76) $ (101)
Enterprise, Embedded and Semi-Custom ............................... 215 399 295
All Other ......................................................... (194) (478) (91)
Total operating income (loss) ............................................. $ (481) $ (155) $ 103
Interest expense ....................................................... (160) (177) (177)
Other income expense, net ............................................... (5) (66) —
Loss before income taxes ................................................ $ (646) $ (398) $ (74)
47