Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 25, 2016 | Jul. 21, 2016 | |
Document Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 25, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | AMD | |
Entity Registrant Name | ADVANCED MICRO DEVICES INC | |
Entity Central Index Key | 2,488 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 795,557,811 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 25, 2016 | Jun. 27, 2015 | |
Income Statement [Abstract] | ||||
Net revenue | $ 1,027 | $ 942 | $ 1,859 | $ 1,972 |
Cost of sales | 708 | 710 | 1,271 | 1,414 |
Gross margin | 319 | 232 | 588 | 558 |
Research and development | 243 | 235 | 485 | 477 |
Marketing, general and administrative | 117 | 134 | 222 | 265 |
Amortization of acquired intangible assets | 0 | 0 | 0 | 3 |
Restructuring and other special charges, net | (7) | 0 | (10) | 87 |
Licensing gain | (26) | 0 | (33) | 0 |
Operating loss | (8) | (137) | (76) | (274) |
Interest expense | (41) | (40) | (81) | (80) |
Other income (expense), net | 150 | (3) | 150 | (3) |
Income (loss) before income taxes and equity loss | 101 | (180) | (7) | (357) |
Provision for income taxes | 29 | 1 | 30 | 4 |
Equity in income (loss) of ATMP JV | (3) | 0 | (3) | 0 |
Net income (loss) | $ 69 | $ (181) | $ (40) | $ (361) |
Net income (loss) per share | ||||
Basic (in usd per share) | $ 0.09 | $ (0.23) | $ (0.05) | $ (0.46) |
Diluted (in usd per share) | $ 0.08 | $ (0.23) | $ (0.05) | $ (0.46) |
Shares used in per share calculation | ||||
Basic (in shares) | 794 | 778 | 794 | 778 |
Diluted (in shares) | 821 | 778 | 794 | 778 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 25, 2016 | Jun. 27, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 69 | $ (181) | $ (40) | $ (361) |
Unrealized gains (losses) on available-for-sale securities: | ||||
Unrealized gains (losses) arising during the period, net of tax effects of $0, $0, $1 and $0 | 1 | 0 | (1) | 0 |
Unrealized gains (losses) on cash flow hedges: | ||||
Unrealized gains (losses) arising during the period, net of tax effects of $1, $0, $3 and $0 | 2 | 3 | 4 | (8) |
Reclassification adjustment for (gains) losses realized and included in net income (loss), net of tax effects of $1, $0, $0 and $0 | 0 | 4 | 2 | 8 |
Total other comprehensive income (loss) | 3 | 7 | 5 | 0 |
Total comprehensive income (loss) | $ 72 | $ (174) | $ (35) | $ (361) |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 25, 2016 | Jun. 27, 2015 | |
Tax effects related to unrealized gains (losses) on available-for-sale securities: | ||||
Unrealized gains (losses) arising during the period | $ 0 | $ 0 | $ (1) | $ 0 |
Tax effects related to unrealized gains (losses) on cash flow hedges: | ||||
Unrealized gains (losses) arising during the period | 1 | 0 | 3 | 0 |
Reclassification adjustment for (gains) losses realized and included in net income (loss) | $ (1) | $ 0 | $ 0 | $ 0 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jun. 25, 2016 | Dec. 26, 2015 | |
Current assets: | |||
Cash and cash equivalents | $ 957 | $ 785 | |
Accounts receivable, net of allowances of $0 and $0 | 671 | 533 | |
Inventories, net | 743 | 678 | |
Prepayment and other - GLOBALFOUNDRIES | 12 | 33 | |
Prepaid expenses | 68 | 43 | |
Other current assets | [1] | 55 | 248 |
Total current assets | 2,506 | 2,320 | |
Property, plant and equipment, net | 169 | 188 | |
Goodwill | 289 | 278 | |
Investment in ATMP JV | 62 | 0 | |
Other assets | [1],[2] | 290 | 298 |
Total assets | 3,316 | 3,084 | |
Current liabilities: | |||
Short-term debt | 226 | 230 | |
Accounts payable | 616 | 279 | |
Payable to GLOBALFOUNDRIES | 94 | 245 | |
Payable to ATMP JV | 150 | 0 | |
Accrued liabilities | [1] | 392 | 472 |
Other current liabilities | 61 | 124 | |
Deferred income on shipments to distributors | 42 | 53 | |
Total current liabilities | 1,581 | 1,403 | |
Long-term debt | [2] | 2,012 | 2,007 |
Other long-term liabilities | [1] | 136 | 86 |
Commitments and contingencies (See Note 11) | |||
Capital stock: | |||
Common stock, par value $0.01; 1,500 shares authorized on June 25, 2016 and December 26, 2015; shares issued: 810 shares on June 25, 2016 and 806 shares on December 26, 2015; shares outstanding: 795 shares on June 25, 2016 and 792 shares on December 26, 2015 | 8 | 8 | |
Additional paid-in capital | 7,053 | 7,017 | |
Treasury stock, at cost (14 shares on June 25, 2016 and December 26, 2015) | (125) | (123) | |
Accumulated deficit | (7,346) | (7,306) | |
Accumulated other comprehensive loss | (3) | (8) | |
Total stockholders’ equity (deficit) | (413) | (412) | |
Total liabilities and stockholders’ equity (deficit) | $ 3,316 | $ 3,084 | |
[1] | Amounts reflected adoption of FASB ASU 2015-17, Balance Sheet Classification of Deferred Taxes beginning in the first quarter of 2016. | ||
[2] | Amounts reflected adoption of FASB ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs beginning in the first quarter of 2016. |
Condensed Consolidated Balance6
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 25, 2016 | Dec. 26, 2015 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 0 | $ 0 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,500,000,000 | 1,500,000,000 |
Common stock, shares issued | 810,000,000 | 806,000,000 |
Common stock, shares outstanding | 795,000,000 | 792,000,000 |
Treasury stock, shares | 14,000,000 | 14,000,000 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 25, 2016 | Jun. 27, 2015 | |
Cash flows from operating activities: | ||
Net Loss | $ (40) | $ (361) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Gain on sale of equity interests in ATMP JV | (150) | 0 |
Equity in income (loss) of ATMP JV | (1) | 0 |
Depreciation and amortization | 66 | 91 |
Provision for deferred income taxes | 11 | 0 |
Stock-based compensation expense | 34 | 34 |
Non-cash interest expense | 7 | 6 |
Restructuring and other special charges, net | 0 | 72 |
Other | (6) | 3 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (138) | 129 |
Inventories | (66) | (117) |
Prepayment and other - GLOBALFOUNDRIES | 21 | 94 |
Prepaid expenses and other assets | (117) | (73) |
Payable to ATMP JV | 150 | 0 |
Payable to GLOBALFOUNDRIES | (151) | (21) |
Accounts payable, accrued liabilities and other | 253 | (86) |
Net cash used in operating activities | (127) | (229) |
Cash flows from investing activities: | ||
Proceeds from sale of equity interests in ATMP JV | 351 | 0 |
Purchases of available-for-sale securities | 0 | (227) |
Purchases of property, plant and equipment | (47) | (39) |
Proceeds from maturities of available-for-sale securities | 0 | 462 |
Other | (1) | 0 |
Net cash provided by investing activities | 303 | 196 |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock | 2 | 1 |
Proceeds from (repayments of) borrowings, net | (4) | 100 |
Repayments of long-term debt and capital lease obligations | 0 | (44) |
Other | (2) | 0 |
Net cash provided by (used in) financing activities | (4) | 57 |
Net increase in cash and cash equivalents | 172 | 24 |
Cash and cash equivalents at beginning of period | 785 | 805 |
Cash and cash equivalents at end of period | $ 957 | $ 829 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jun. 25, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Basis of Presentation. The accompanying unaudited condensed consolidated financial statements of Advanced Micro Devices, Inc. and its subsidiaries (the Company or AMD) have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. The results of operations for the quarter and six months ended June 25, 2016 shown in this report are not necessarily indicative of results to be expected for the full year ending December 31, 2016 . In the opinion of the Company’s management, the information contained herein reflects all adjustments necessary for a fair presentation of the Company’s results of operations, financial position and cash flows. All such adjustments are of a normal, recurring nature. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 26, 2015 . The Company uses a 52 or 53 week fiscal year ending on the last Saturday in December. The quarters and six months ended June 25, 2016 and June 27, 2015 each consisted of 13 weeks and 26 weeks, respectively. Principles of Consolidation. The condensed consolidated financial statements include the Company’s accounts and those of its wholly-owned subsidiaries. Upon consolidation, all significant intercompany accounts and transactions are eliminated. Recently Issued Accounting Standards Income Tax . In November 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-17, Balance Sheet Classification of Deferred Taxes (ASU 2015-17) , which simplifies the presentation of deferred income taxes by requiring that all deferred tax assets and liabilities to be classified as non-current on the consolidated balance sheet. The Company has adopted ASU 2015-17 prospectively in the first quarter of 2016. As a result, the Company netted $31 million of deferred tax assets and deferred tax liabilities, respectively, and reclassified $8 million current deferred tax assets and $6 million current deferred tax liabilities to non-current deferred tax assets and liabilities, respectively, on its condensed consolidated balance sheet as of March 26, 2016. The prior period information was not retrospectively adjusted. Interest—Imputation of Interest. In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03) , which requires an entity to present such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs will continue to be reported as interest expense. ASU 2015-03 is effective for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years, with early adoption permitted. The new guidance will be applied retrospectively to each prior period presented. In August 2015, the FASB issued ASU 2015 -15 to amend ASU 2015-03 and address debt issuance costs related to line-of-credit arrangements. ASU 2015-15 allows an entity to present debt issuance costs related to a line-of-credit as an asset and subsequently amortize the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the arrangement. This accounting standard update did not impact the effective date of the previously issued guidance. The Company retrospectively adopted ASU 2015-03 and 2015-15 in the first quarter of 2016. As a result, the Company r eclassified the financing costs from long term assets to long term debt by $23 million and $25 million as of March 26, 2016 and December 26, 2015, respectively, on its consolidated balance sheets. Inventory. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory (ASU 2015-11), which simplifies the measurement of inventory by requiring certain inventory to be measured at the lower of cost or net realizable value. The amendments in this ASU are effective for fiscal years beginning after December 15, 2016 and for interim periods therein, with early adoption permitted. The Company is currently evaluating the impact of its pending adoption of ASU 2015-11 on its consolidated financial statements. Disclosure of Going Concern Uncertainties. In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (ASU 2014-15) , which provides guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and to provide related footnote disclosures. ASU 2014-15 is effective for fiscal years ending after December 15, 2016 and for interim and annual periods therein with early adoption permitted. The Company is currently evaluating the impact of its pending adoption of ASU 2014-15 on its consolidated financial statements. Revenue Recognition. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers: Topic 606 (ASU 2014-09), which creates a single source of revenue guidance under U.S. GAAP for all companies in all industries. The core principle of ASU 2014-09 is that revenue should be recognized in a manner that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 defines a five-step process in order to achieve this core principle, which may require the use of judgment and estimates. ASU 2014-09 also requires expanded qualitative and quantitative disclosures relating to the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers, including significant judgments and estimates used. In July 2015, FASB announced a decision to defer the effective date for this ASU. ASU 2014-09 is effective for the Company in the first quarter of 2018 with early adoption permitted (for annual reporting periods beginning after December 15, 2016). The Company may adopt ASU 2014-09 either by using a full retrospective approach for all periods presented in the period of adoption or a modified retrospective approach. The Company is currently evaluating the impact of its pending adoption of ASU 2014-09 on its consolidated financial statements and has not yet determined which approach it will apply. Financial Instruments. In January 2016, FASB issued ASU No. 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01), which provides guidance related to accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period. The Company is currently evaluating the impact of its pending adoption of ASU 2016-01 on its consolidated financial statements. Leases. During February 2016, the FASB issued ASU No. 2016-02, Leases . (ASU 2016-02), which increases transparency and comparability among organizations by recognizing all lease transactions (with terms in excess of 12 months) on the balance sheet as a lease liability and a right-of-use asset (as defined). ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early application permitted. Upon adoption, the lessee will apply the new standard retrospectively to all periods presented or retrospectively using a cumulative effect adjustment in the year of adoption. The Company is currently evaluating the impact of its pending adoption of ASU 2016-02 on its consolidated financial statements. Investments . In March 2016, the FASB issued ASU No. 2016-07, Investments – Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting (ASU 2016-07), which requires the equity method investor to add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment qualifies for equity method accounting. ASU 2016-07 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years with early application permitted. The Company is currently evaluating the impact of its pending adoption of ASU 2016-07 on its consolidated financial statements. Stock Compensation. In March 2016, the FASB issued ASU No. 2016-09, Stock Compensation (ASU 2016-09), which is intended to simplify several aspects of the accounting for share-based payment award transactions. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, including interim periods. The Company is currently evaluating the impact of its pending adoption of ASU 2016-09 on its consolidated financial statements. Although there are several other new accounting pronouncements issued or proposed by the FASB, which the Company has adopted or will adopt, as applicable, the Company does not believe any of these accounting pronouncements has had or will have a material impact on its consolidated financial position or operating results. |
Globalfoundries
Globalfoundries | 6 Months Ended |
Jun. 25, 2016 | |
Related Party Transactions [Abstract] | |
Globalfoundries | GLOBALFOUNDRIES Wafer Supply Agreement. The Wafer Supply Agreement (WSA) governs the terms by which the Company purchases products manufactured by GLOBALFOUNDRIES Inc. (GF). Fifth Amendment to Wafer Supply Agreement . On April 16, 2015 , the Company entered into a fifth amendment to the WSA. The primary effect of the fifth amendment was to establish volume purchase commitments and fixed pricing for the 2015 calendar year as well as to modify certain other terms of the WSA applicable to wafers for some of the Company's microprocessor unit, graphics processor unit and semi-custom products to be delivered by GF to the Company during the 2015 calendar year. The Company’s total purchases from GF related to wafer manufacturing and research and development activities for the quarters ended June 25, 2016 and June 27, 2015 were $85 million and $246 million , respectively. The Company’s total purchases from GF related to wafer manufacturing and research and development activities for the six months ended June 25, 2016 and June 27, 2015 were $293 million and $416 million , respectively. The Company’s currently known purchase obligations to GF for wafer manufacturing and research and development activities are approximately $434 million for fiscal 2016 which include certain wafer deliveries under the fifth amendment to the WSA that had been delayed to fiscal 2016. The Company is not able to meaningfully quantify or estimate its future purchase obligations to GF beyond this amount because it is currently in the process of negotiating a sixth amendment to the WSA. The Company expects that its future purchases from GF will continue to be material. GF continues to be a related party of the Company because Mubadala Development Company PJSC (Mubadala) and Mubadala Technology Investments LLC (Mubadala Tech) are affiliated with West Coast Hitech L.P. (WCH), the Company’s largest stockholder. GF, WCH and Mubadala Tech are wholly-owned subsidiaries of Mubadala. |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 6 Months Ended |
Jun. 25, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information Inventories June 25, December 26, (In millions) Raw materials $ 13 $ 16 Work in process 579 482 Finished goods 151 180 Total inventories, net $ 743 $ 678 Other Current Assets June 25, December 26, (In millions) Assets held-for-sale $ — $ 183 Other current assets 55 65 Total other current assets $ 55 $ 248 Property, Plant and Equipment June 25, December 26, (In millions) Leasehold improvements $ 147 $ 146 Equipment 791 821 Construction in progress 12 17 Property, plant and equipment, gross 950 984 Accumulated depreciation and amortization (781 ) (796 ) Total property, plant and equipment, net $ 169 $ 188 Other Assets June 25, December 26, (In millions) Software and technology licenses, net $ 231 $ 189 Other 59 109 Total other assets $ 290 $ 298 Accrued Liabilities June 25, December 26, (In millions) Accrued compensation and benefits $ 112 $ 95 Marketing programs and advertising expenses 99 109 Software and technology licenses payable 19 50 Other 162 218 Total accrued liabilities $ 392 $ 472 Other Current Liabilities June 25, December 26, (In millions) Liabilities related to assets held-for-sale $ — $ 79 Other current liabilities 61 45 Total other current liabilities $ 61 $ 124 |
Equity Interest Purchase Agreem
Equity Interest Purchase Agreement - ATMP Joint Venture | 6 Months Ended |
Jun. 25, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Equity Interest Purchase Agreement - ATMP Joint Venture | Equity Interest Purchase Agreement - ATMP Joint Venture On April 29, 2016, the Company and certain of its subsidiaries completed the sale of a majority of the equity interests in AMD Technologies (China) Co., Ltd., a wholly-foreign owned enterprise incorporated as a limited liability company, and Advanced Micro Devices Export Sdn. Bhd., a Malaysian limited liability company, to affiliates of Nantong Fujitsu Microelectronics Co., Ltd., a Chinese joint stock company (NFME), to form two joint ventures (collectively, the ATMP JV), pursuant to the terms of an Equity Interest Purchase Agreement, dated as of October 15, 2015 (the Equity Interest Purchase Agreement), between the Company and NFME. As a result of the sale, NFME’s affiliates own 85% of the equity interests in each ATMP JV while certain of the Company’s subsidiaries own the remaining 15% . The Company has no obligations to fund the ATMP JV. As the result of the transaction, the Company received approximately $351 million , including purchase price adjustments, in net cash proceeds in the second quarter of 2016 for selling 85% of the equity interest in each of AMD Technologies (China) Co., Ltd. and Advanced Micro Devices Export Sdn. Bhd. These proceeds, net of certain transaction costs, were included in investing activities on the Company's condensed consolidated statements of cash flows for the six months ended June 25, 2016. The Company estimates final net cash proceeds, excluding final purchase price adjustments which the Company expects will be settled in upcoming quarters, after payment of taxes and customary expenses in the current and future quarters, of approximately $320 million . In connection with the divestiture, the Company recognized a pre-tax gain of $150 million within Other income (expense), net on its condensed consolidated statements of operations during the quarter and six months ended June 25, 2016. The pre-tax gain reflects the excess of the sum of net cash proceeds and fair value of the Company's retained 15% equity interests in the ATMP JV over the sum of the net book values of the Company's former subsidiaries and other closing costs directly attributed to the divestiture. The above gain includes $12 million of excess of fair value of the Company's retained interest over the corresponding net book values. In determining the fair value of the Company's retained 15% equity interests in the ATMP JV, the Company used quoted prices from comparable bids for this transaction. The Company also considered other factors including the control premium and the amount of consideration received for the portion sold. The Company accounts for its equity interests in the ATMP JV under the equity method of accounting due to its significant influence over the ATMP JV. As of June 25, 2016 , the carrying value of the Company's investment in the ATMP JV was approximately $62 million . Opening balances of ATMP JV are currently undergoing a valuation analysis which may result in adjustment to the carrying value of the investment in ATMP JV, adjustment to the recognized gain on sale of the 85% equity interest or equity method income (loss) in ATMP JV. Following the deconsolidation, the ATMP JV is a related party of the Company. The ATMP JV provides assembly, test, mark and pack (ATMP) services to the Company. The Company currently pays the ATMP JV for ATMP services on a cost-plus basis. The Company's total purchases from the ATMP JV in the second quarter of 2016 amounted to approximately $66 million . The Company’s payable to the ATMP JV, as of June 25, 2016 was $150 million also included amounts payable to the former subsidiaries, AMD Technologies (China) Co., Ltd. and Advanced Micro Devices Export Sdn. Bhd., arising from the transactions prior to the sale. The Company recorded a loss of $3 million in Equity in income (loss) of ATMP JV on its condensed consolidated statements of operations for the quarter and six months ended June 25, 2016, which includes certain expenses incurred by the Company on behalf of the ATMP JV. |
Equity Joint Venture - Intellec
Equity Joint Venture - Intellectual Property Licensing Agreement | 6 Months Ended |
Jun. 25, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Joint Venture - Intellectual Property Licensing Agreement | Equity Joint Venture - Intellectual Property Licensing Agreement In February 2016, the Company and Tianjin Haiguang Advanced Technology Investment Co., Ltd. (THATIC), a third-party Chinese entity (JV Partner) formed a joint venture comprised of two separate legal entities, China JV1 and China JV2 (collectively, the China JVs). The Company’s equity share in China JV1 and China JV2 is a majority and minority interest, respectively, funded by the Company’s contribution of certain of its patents. The JV Partner is responsible for the initial and on-going financing of the China JVs’ operations. The Company has no obligations to fund the China JVs. The China JVs’ primary purpose is to support the Company’s expansion into the server and workstation product market in China. The Company licensed certain of its intellectual property (Licensed IP) to the China JVs for a total of approximately $293 million in license fees payable over several years contingent upon achievement of certain milestones. The Company also expects to receive a royalty based on the sales of the China JVs’ products to be developed on the basis of such Licensed IP. The Company will also provide certain engineering and technical support to the China JVs in connection with the product development. The Company concluded the China JV1 and China JV2 are not operating joint ventures and are variable interest entities due to their reliance on on-going financing by JV Partner. The Company determined that it is not the primary beneficiary of either China JV1 or China JV2 and will not consolidate either of these entities. The Company accounts for its investments in the China JVs under the equity method of accounting. Income related to the Licensed IP will be recognized over the period commencing upon delivery of the first Licensed IP milestone through the date of the milestone that requires the Company’s continuing involvement in the product development process, and thereafter, together with royalty payments, will be recognized in income once earned. The Company will classify Licensed IP income and royalty income as other operating income. During the quarter and six months ended June 25, 2016 , the Company recognized $26 million and $33 million , respectively, of operating income related to the Licensed IP. The Company’s total exposure to losses through its investment into the China JVs is limited to the Company’s investments in the China JVs, which was zero as of June 25, 2016 . The Company’s share in the net losses of the China JVs for the quarter and six months ended June 25, 2016 was not material and is not recorded in the Company’s condensed consolidated statement of operations since the Company is not obligated to fund the China JVs losses in excess of the Company’s investment in the China JVs. As of June 25, 2016 , the total assets and liabilities of the China JVs were not material. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 6 Months Ended |
Jun. 25, 2016 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) Per Share Basic net income (loss) per share is computed based on the weighted average number of shares outstanding. Diluted net income (loss) per share is computed based on the weighted average number of shares outstanding plus any potentially dilutive shares outstanding. Potentially dilutive shares include stock options and restricted stock units. The following table sets forth the components of basic and diluted net income (loss) per share: Three Months Ended Six Months Ended June 25, June 27, June 25, June 27, (In millions, except per share amounts) Numerator – Net income (loss): Numerator for basic and diluted net income (loss) per share $ 69 $ (181 ) $ (40 ) $ (361 ) Denominator – Weighted average shares Denominator for basic net income (loss) per share 794 778 794 778 Effect of potentially dilutive shares: Employee stock options and restricted stock units 27 — — — Denominator for diluted net income (loss) per share 821 778 794 778 Net income (loss) per share: Basic $ 0.09 $ (0.23 ) $ (0.05 ) $ (0.46 ) Diluted $ 0.08 $ (0.23 ) $ (0.05 ) $ (0.46 ) Potential shares from stock options and restricted stock units totaling 19 million and 51 million were not included in the net income (loss) per share calculations for the second quarters of 2016 and 2015 , respectively, because their inclusion would have been anti-dilutive. Potential shares from employee stock options and restricted stock units totaling 41 million and 63 million were not included in the net loss per share calculation for the six months ended June 25, 2016 and June 27, 2015, because their inclusion would have been anti-dilutive. |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 25, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Financial Instruments | Financial Instruments Cash and Cash Equivalents Cash and financial instruments measured and recorded at fair value on a recurring basis as of June 25, 2016 and December 26, 2015 are summarized below: June 25, 2016 December 26, 2015 (In millions) Cash and cash equivalents Cash $ 407 $ 409 Level 2 (1) (2) Commercial paper 550 376 Total level 2 550 376 Total $ 957 $ 785 (1) The Company did no t have any transfers between Level 1 and Level 2 of the fair value hierarchy during the quarter and six months ended June 25, 2016 or the year ended December 26, 2015 . (2) The Company’s Level 2 short-term investments are valued using broker reports that utilize quoted market prices for identical or comparable instruments. Brokers gather observable inputs for all of the Company’s fixed income securities from a variety of industry data providers and other third-party sources. Available-for-sale securities held by the Company as of June 25, 2016 and December 26, 2015 consisted of commercial paper. The amortized cost of available-for-sale securities approximated the fair value for all periods presented. In addition to those amounts presented above, as of June 25, 2016 and December 26, 2015 , the Company had approximately $3 million and $1 million , respectively, of available-for-sale investments in money market funds, used as collateral for letters of credit deposits, which were included in Other current assets and Other assets, respectively, on the Company’s condensed consolidated balance sheets. These money market funds are classified within Level 1 because they are valued using quoted prices for identical instruments in active markets. Their amortized costs are the same as the fair value for all periods presented. The Company is restricted from accessing these deposits. Also in addition to those amounts presented above, as of June 25, 2016 and December 26, 2015 , the Company had approximately $14 million and $15 million , respectively, of available-for-sale investments in mutual funds held in a Rabbi trust established for the Company's deferred compensation plan, which were included in Other assets on the Company's condensed consolidated balance sheets. These mutual funds are classified within Level 1 because they are valued using quoted prices for identical instruments in active markets. Their amortized cost approximates the fair value for all periods presented. The Company is restricted from accessing these investments. Financial Instruments Not Recorded at Fair Value on a Recurring Basis. The Company carries its financial instruments at fair value with the exception of its debt. Financial instruments that are not recorded at fair value are measured at fair value on a quarterly basis for disclosure purposes. The carrying amounts and estimated fair values of financial instruments not recorded at fair value are as follows: June 25, 2016 December 26, 2015 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value (In millions) Short-term debt $ 226 $ 226 $ 230 $ 230 Long-term debt (1) $ 2,002 $ 1,839 $ 2,000 $ 1,372 (1) Carrying amounts of long-term debt are net of unamortized debt issuance costs of $23 million as of June 25, 2016 and $25 million as of December 26, 2015 , based on the adoption of ASU 2015-03. The Company’s short-term and long-term debt are classified within Level 2. The fair value of the debt was estimated based on the quoted market prices for the same or similar issues or on the current rates offered to the Company for debt of the same remaining maturities. The fair value of the Company’s accounts receivable, accounts payable and other short-term obligations approximate their carrying value based on existing payment terms. Hedging Transactions and Derivative Financial Instruments Cash Flow Hedges The following table shows the amount of gain (loss) included in accumulated other comprehensive income (loss), the amount of gain (loss) reclassified from accumulated other comprehensive income (loss) and included in earnings related to the foreign currency forward contracts designated as cash flow hedges and the amount of gain (loss) included in other income (expense), net, related to contracts not designated as hedging instruments, which was allocated in the condensed consolidated statements of operations: Three Months Ended Six Months Ended June 25, June 27, June 25, June 27, (In millions) Foreign Currency Forward Contracts - gains (losses) Contracts designated as cash flow hedging instruments Other comprehensive income (loss) $ 2 $ 7 $ 8 $ — Cost of sales — — — (1 ) Research and development 1 (2 ) (1 ) (4 ) Marketing, general and administrative — (2 ) — $ (3 ) Contracts not designated as hedging instruments Other income (expense), net $ 2 $ — $ 2 $ (1 ) The Company’s foreign currency derivative contracts are classified within Level 2 because the valuation inputs are based on quoted prices and market observable data of similar instruments in active markets, such as currency spot and forward rates. The following table shows the fair value amounts included in Other current assets should the foreign currency forward contracts be in a gain position or included in Other current liabilities should these contracts be in a loss position. These amounts were recorded in the Company's condensed consolidated balance sheets as follows: June 25, December 26, (In millions) Foreign Currency Forward Contracts - gains (losses) Contracts designated as cash flow hedging instruments $ 2 $ (6 ) Contracts not designated as hedging instruments $ 1 $ — For the foreign currency contracts designated as cash flow hedges, the ineffective portions of the hedging relationship and the amounts excluded from the assessment of hedge effectiveness were immaterial. As of June 25, 2016 and December 26, 2015 , the notional values of the Company’s outstanding foreign currency forward contracts were $265 million and $156 million , respectively. All the contracts mature within 12 months, and, upon maturity, the amounts recorded in Accumulated other comprehensive income (loss) are expected to be reclassified into earnings. The Company hedges its exposure to the variability in future cash flows for forecasted transactions over a maximum of 12 months. Fair Value Hedges The Company’s fair value hedge derivative contracts are classified within Level 2 because the valuation inputs are based on quoted prices and market observable data of similar instruments in active markets. The following table shows the fair value amounts included in Other assets should the fair value hedge derivative contracts be in a gain position or included in Other long-term liabilities should these contracts be in a loss position. These amounts were recorded in the Company’s condensed consolidated balance sheets as follows: June 25, December 26, (In millions) Interest Rate Swap Contracts - gains (losses) Contracts designated as fair value hedging instruments $ 10 $ 7 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 25, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes In the second quarter of 2016 , the Company recorded an income tax provision of $29 million . This included $2 million due primarily to foreign taxes in profitable locations and $2 million for withholding taxes applicable to license fee revenue from foreign locations partially offset by $2 million of tax benefits arising from other comprehensive income and Canadian tax credits. In addition, the Company recorded the tax effect of completion of the sale of a majority equity interest in two subsidiaries comprising $21 million of income tax expense in China and $6 million of withholding tax expense associated with a future repatriation of the gain generated in China by the Chinese portion of that transaction (see Note 4. Equity Interest Purchase Agreement - ATMP Joint Venture). In future periods, the Company will apply the equity method of accounting to its 15% investment in the two former subsidiaries. The Company's share of applicable tax expense will be netted with the equity share of future profits or losses. In 2015, the Company recorded an income tax provision of $2 million related to the activities of the two former subsidiaries. The Company has not recognized the tax benefit of future foreign tax credits associated with the withholding tax expense as the size and age profile of existing tax attributes does not allow it to satisfy the "more likely than not" criterion for the recognition of deferred tax assets. For the six months ended June 25, 2016 , the Company recorded an income tax provision of $30 million due to foreign taxes in profitable locations and items identified above. In the second quarter of 2015 and for the six months ended June 27, 2015 , the Company recorded an income tax provision of $1 million and $4 million , respectively, due to foreign taxes in profitable locations. As of June 25, 2016 , substantially all of the Company’s U.S. and Canadian deferred tax assets, net of deferred tax liabilities, continue to be subject to a valuation allowance. The realization of these assets is dependent on substantial future taxable income which, as of June 25, 2016 , in management’s estimate, is not more likely than not to be achieved. The Company's total gross unrecognized tax benefits as of June 25, 2016 were $41 million . The Company currently does not expect to reduce its unrecognized tax benefits over the next 12 months. The Company does not believe it is reasonably possible that other unrecognized tax benefits will materially change in the next 12 months. However, the settlement, resolution or closure of tax audits are highly uncertain. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 25, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting | 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 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. The Company has the following two reportable segments: • the Computing and Graphics segment, which primarily includes desktop and notebook processors and chipsets, discrete graphics processing units (GPUs) and professional graphics; and • the Enterprise, Embedded and Semi-Custom segment, which primarily includes server and embedded processors, semi-custom System-on-Chip (SoC) products, development services, technology for game consoles and licensing portions of its intellectual property portfolio. In addition to these reportable segments, the Company has 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, employee stock-based compensation expense, restructuring and other special charges, net and amortization of acquired intangible assets. The following table provides a summary of net revenue and operating income (loss) by segment: Three Months Ended Six Months Ended June 25, June 27, June 25, June 27, (In millions) Net revenue: Computing and Graphics $ 435 $ 379 $ 895 $ 911 Enterprise, Embedded and Semi-Custom 592 563 964 1,061 Total net revenue $ 1,027 $ 942 $ 1,859 $ 1,972 Operating income (loss): Computing and Graphics $ (81 ) $ (147 ) $ (151 ) $ (222 ) Enterprise, Embedded and Semi-Custom 84 27 100 72 All Other (11 ) (17 ) (25 ) (124 ) Total operating loss $ (8 ) $ (137 ) $ (76 ) $ (274 ) The following table provides major items included in All Other category: Three Months Ended Six Months Ended June 25, June 27, June 25, June 27, (In millions) Operating loss: Stock-based compensation expense $ (18 ) $ (17 ) $ (34 ) $ (34 ) Restructuring and other special charges, net 7 — 10 (87 ) Other — — (1 ) (3 ) Total operating loss $ (11 ) $ (17 ) $ (25 ) $ (124 ) |
Stock-Based Incentive Compensat
Stock-Based Incentive Compensation Plans | 6 Months Ended |
Jun. 25, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Incentive Compensation Plans | Stock-Based Incentive Compensation Plans The following table summarizes stock-based compensation expense related to employee stock options and restricted stock units, which is allocated within the Company’s condensed consolidated statements of operations as follows: Three Months Ended Six Months Ended June 25, June 27, June 25, June 27, (In millions) Cost of sales $ — $ 1 $ 1 $ 2 Research and development 10 10 19 20 Marketing, general and administrative 8 6 14 12 Stock-based compensation expense, net of tax of $0 $ 18 $ 17 $ 34 $ 34 For all periods presented, the Company did no t realize any excess tax benefit related to stock-based compensation and therefore did not record any related financing cash flows. Stock Options In the first six months of 2016 , the Company did no t grant any employee stock options to its employees. The weighted average assumptions applied in the lattice-binomial model that the Company uses to estimate the fair value of employee stock options are as follows: Three Months Ended Six Months Ended June 25, June 27, June 25, June 27, Expected volatility N/A 54.86 % N/A 54.43 % Risk-free interest rate N/A 1.15 % N/A 1.21 % Expected dividends N/A 0.00 % N/A 0.00 % Expected life N/A 3.91 years N/A 3.91 years In the second quarter of 2015 , the Company granted 0.5 million shares of employee stock options, with weighted average grant date fair value per share of $1.06 . For the six months ended June 27, 2015 , the Company granted 0.7 million employee stock options with weighted average grant date fair values per share of $1.12 . Restricted Stock Units In the second quarters of 2016 and 2015, the Company granted 5.6 million and 4.1 million shares of restricted stock units, respectively, with weighted average grant date fair values per share of $2.97 and $2.46 , respectively. For the six months ended June 25, 2016 and June 27, 2015 , the Company granted 6.4 million and 9.4 million shares of restricted stock units, respectively, with weighted average grant date fair values per share of $2.86 and $2.50 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 25, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Warranties and Indemnities The Company generally warrants that its products sold to its customers will conform to the Company’s approved specifications and be free from defects in material and workmanship under normal use and service for one year. Subject to certain exceptions, the Company also offers a three-year limited warranty to end users for only those central processing unit (CPU) and AMD accelerated processing unit (APU) products that are commonly referred to as “processors in a box” and for certain server CPU products. The Company also offers extended limited warranties to certain customers of “tray” microprocessor products and/or professional graphics products who have written agreements with the Company and target their computer systems at the commercial and/or embedded markets. Changes in the Company’s estimated liability for product warranty were as follows: Three Months Ended Six Months Ended June 25, June 27, June 25, June 27, (In millions) Beginning balance $ 13 $ 21 $ 15 $ 19 New warranties issued 5 6 10 14 Settlements (4 ) (6 ) (8 ) (15 ) Changes in liability for pre-existing warranties, including expirations (3 ) (4 ) (6 ) (1 ) Ending balance $ 11 $ 17 $ 11 $ 17 In addition to product warranties, the Company, from time to time in its normal course of business, indemnifies other parties, with whom it enters into contractual relationships, including customers, lessors and parties to other transactions with the Company, with respect to certain matters. In these limited matters, the Company has agreed to hold certain third parties harmless against specific types of claims or losses, such as those arising from a breach of representations or covenants, third-party claims that the Company’s products when used for their intended purpose(s) and under specific conditions infringe the intellectual property rights of a third party, or other specified claims made against the indemnified party. It is not possible to determine the maximum potential amount of liability under these indemnification obligations due to the unique facts and circumstances that are likely to be involved in each particular claim and indemnification provision. Historically, payments made by the Company under these obligations have not been material. Contingencies Securities Class Action On January 15, 2014, a class action lawsuit captioned Hatamian v. AMD, et al. , C.A. No. 3:14-cv-00226 (the “Hatamian Lawsuit”) was filed against the Company in the United States District Court for the Northern District of California. The complaint purports to assert claims against the Company and certain individual officers for alleged violations of Section 10(b) of the Securities Exchange Act of 1934, as amended (the Exchange Act), and Rule 10b-5 of the Exchange Act. The plaintiffs seek to represent a proposed class of all persons who purchased or otherwise acquired the Company's common stock during the period April 4, 2011 through October 18, 2012. The complaint seeks damages allegedly caused by alleged materially misleading statements and/or material omissions by the Company and the individual officers regarding the Company's 32nm technology and “Llano” product, which statements and omissions, the plaintiffs claim, allegedly operated to artificially inflate the price paid for the Company's common stock during the period. The complaint seeks unspecified compensatory damages, attorneys’ fees and costs. On July 7, 2014, the Company filed a motion to dismiss plaintiffs’ claims. On March 31, 2015, the Court denied the motion to dismiss. On May 14, 2015, the Company filed its answer to plaintiffs’ corrected amended complaint. On September 4, 2015, plaintiffs filed their motion for class certification, and on March 16, 2016, the Court granted plaintiffs' motion. A court-ordered mediation held in January 2016 did not result in a settlement of the lawsuit. The discovery process is ongoing. Based upon information presently known to management, the Company believes that the potential liability, if any, will not have a material adverse effect on its financial condition, cash flows or results of operations. Shareholder Derivative Lawsuits On March 20, 2014, a purported shareholder derivative lawsuit captioned Wessels v. Read, et al. , Case No. 1:14 cv-262486 (“Wessels”) was filed against the Company (as a nominal defendant only) and certain of its directors and officers in the Santa Clara County Superior Court of the State of California. The complaint purports to assert claims against the Company and certain individual directors and officers for breach of fiduciary duty, waste of corporate assets and unjust enrichment. The complaint seeks damages allegedly caused by alleged materially misleading statements and/or material omissions by the Company and the individual directors and officers regarding its 32nm technology and “Llano” product, which statements and omissions, the plaintiffs claim, allegedly operated to artificially inflate the price paid for the Company's common stock during the period. On April 27, 2015, a similar purported shareholder derivative lawsuit captioned Christopher Hamilton and David Hamilton v. Barnes, et al. , Case No. 5:15-cv-01890 (“Hamilton”) was filed against the Company (as a nominal defendant only) and certain of its directors and officers in the United States District Court for the Northern District of California. The case was transferred to the judge handling the Hatamian Lawsuit and is now Case No. 4:15-cv-01890. On September 29, 2015, a similar purported shareholder derivative lawsuit captioned Jake Ha v Caldwell, et al., Case No. 3:15-cv-04485 (“Ha”) was filed against the Company (as a nominal defendant only) and certain of its directors and officers in the United States District Court for the Northern District of California. The lawsuit also seeks a court order voiding the stockholder vote on the Company’s 2015 proxy. The case was transferred to the judge handling the Hatamian Lawsuit and is now Case No. 4:15-cv-04485. The Wessels, Hamilton and Ha shareholder derivative lawsuits are currently stayed. Based upon information presently known to management, the Company believes that the potential liability, if any, will not have a material adverse effect on its financial condition, cash flows or results of operations. Other Legal Matters The Company is a defendant or plaintiff in various actions that arose in the normal course of business. With respect to these matters, based on the management’s current knowledge, the Company believes that the amount or range of reasonably possible loss, if any, will not, either individually or in the aggregate, have a material adverse effect on the Company’s business, financial position, results of operations or cash flows. |
Restructuring and Other Special
Restructuring and Other Special Charges | 6 Months Ended |
Jun. 25, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Special Charges, Net | Restructuring and Other Special Charges, Net 2015 Restructuring Plan In the third quarter of 2015, the Company implemented a restructuring plan (2015 Restructuring Plan) focused on its ongoing efforts to simplify its business and better align resources around its priorities and business outlook. The 2015 Restructuring Plan largely involved a reduction of global headcount by approximately 5% and includes organizational actions such as outsourcing certain IT services and application development. The actions associated with the 2015 Restructuring Plan are expected to be substantially completed by the end of the third quarter of 2016. The following table provides a summary of the restructuring activities in the first six months of 2016 and the related liabilities recorded in Other current liabilities and Other long-term liabilities on the Company’s condensed consolidated balance sheets as of June 25, 2016 : Severance Other exit Total (In millions) Balance as of December 26, 2015 $ 14 $ — $ 14 Charges (reversals), net (2 ) — (2 ) Cash payments (7 ) — (7 ) Balance as of June 25, 2016 $ 5 $ — $ 5 2014 Restructuring Plan In the fourth quarter of 2014, the Company implemented a restructuring plan (2014 Restructuring Plan) designed to improve operating efficiencies. The 2014 Restructuring Plan involved a reduction of global headcount by approximately 6% and an alignment of its real estate footprint with its reduced headcount. In the first six months of 2015 , the Company recorded an $11 million restructuring charge, which consisted of $4 million for severance and benefit costs and $7 million for facilities related costs. The 2014 Restructuring Plan was largely completed by the end of the third quarter of 2015. During the first six months of 2016 , the Company recorded a restructuring charge reversal of $7 million , of which $5 million related to facilities costs associated with a lease amendment which reduced a lease liability previously accrued under this plan. The following table provides a summary of the restructuring activities in the first six months of 2016 and the related liabilities recorded in Other current liabilities and Other long-term liabilities on the Company’s condensed consolidated balance sheets as of June 25, 2016 : Severance and related benefits Other exit related costs Total (In millions) Balance as of December 26, 2015 $ 5 $ 15 $ 20 Charges (reversals), net (1 ) (7 ) (8 ) Cash payments (1 ) (2 ) (3 ) Balance as of June 25, 2016 $ 3 $ 6 $ 9 Dense Server Systems Business Exit As a part of the Company’s strategy to simplify and sharpen its investment focus, the Company exited the dense server systems business, formerly SeaMicro, in the first quarter of 2015. As a result, the Company recorded a charge of $76 million in Restructuring and other special charges, net on the Company’s condensed consolidated statements of operations in the first six months of 2015 . This charge included an impairment charge of $62 million related to the acquired intangible assets. The Company concluded that the carrying value of the acquired intangible assets associated with its dense server systems business was fully impaired as the Company did not have plans to utilize the related freedom fabric technology in any of its future products nor did it have any plans at that time to monetize the associated intellectual property. In addition, the exit charge consisted of a $7 million non-cash charge related to asset impairments, $4 million of severance and related benefits and $3 million for contract or program termination costs. The Company has substantially completed this exit activity during the first quarter of 2016. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 25, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The tables below summarize the changes in accumulated other comprehensive income (loss) by component: Three Months Ended June 25, June 27, Unrealized gains (losses) on available-for-sale securities Unrealized gains (losses) on cash flow hedges Total Unrealized gains (losses) on available-for-sale securities Unrealized gains (losses) on cash flow hedges Total (In millions) Beginning balance $ (3 ) $ (3 ) $ (6 ) $ 1 $ (13 ) $ (12 ) Unrealized gains (losses) arising during the period 1 3 4 — 3 3 Reclassification adjustment for (gains) losses realized and included in net income (loss) — (1 ) (1 ) — 4 4 Tax effect — — — — — — Total other comprehensive income (loss) 1 2 3 — 7 7 Ending balance $ (2 ) $ (1 ) $ (3 ) $ 1 $ (6 ) $ (5 ) Six Months Ended June 25, June 27, Unrealized gains (losses) on available-for-sale securities Unrealized gains (losses) on cash flow hedges Total Unrealized gains (losses) on available-for-sale securities Unrealized gains (losses) on cash flow hedges Total (In millions) Beginning balance $ (1 ) $ (7 ) $ (8 ) $ 1 $ (6 ) $ (5 ) Unrealized gains (losses) arising during the period (2 ) 7 5 — (8 ) (8 ) Reclassification adjustment for (gains) losses realized and included in net income (loss) — 2 2 — 8 8 Tax effect 1 (3 ) (2 ) — — — Total other comprehensive income (loss) (1 ) 6 5 — — — Ending balance $ (2 ) $ (1 ) $ (3 ) $ 1 $ (6 ) $ (5 ) |
Secured Revolving Line of Credi
Secured Revolving Line of Credit | 6 Months Ended |
Jun. 25, 2016 | |
Debt Disclosure [Abstract] | |
Secured Revolving Line of Credit | Secured Revolving Line of Credit Amended and Restated Loan and Security Agreement On April 14, 2015, AMD and its subsidiaries, AMD International Sales & Service, Ltd. and ATI Technologies ULC (collectively, the Loan Parties), entered into an amended and restated loan and security agreement (the Amended and Restated Loan Agreement) by and among the Loan Parties, the financial institutions party thereto from time to time as lenders (the Lenders) and Bank of America, N.A., acting as agent for the Lenders (the Agent). The Amended and Restated Loan Agreement provides for a Secured Revolving Line of Credit for a principal amount up to $500 million with up to $75 million available for issuance of letters of credit, which remained unchanged from the loan and security agreement dated November 12, 2013, as amended on December 11, 2014. Borrowings under the Secured Revolving Line of Credit are limited to up to 85% of eligible accounts receivable ( 90% for certain qualified eligible accounts receivable), minus specified reserves. The size of the commitments under the Secured Revolving Line of Credit may be increased by up to an aggregate amount of $200 million . The Secured Revolving Line of Credit matures on April 14, 2020 and is secured by a first priority security interest in the Loan Parties’ accounts receivable, inventory, deposit accounts maintained with the Agent and other specified assets, including books and records. At June 25, 2016 and December 26, 2015 , the Secured Revolving Line of Credit had an outstanding loan balance of $226 million and $230 million , at an interest rate of 4.25% and 4.00% , respectively. At June 25, 2016 , the Secured Revolving Line of Credit also had $21 million related to outstanding letters of credit, and up to $163 million available for future borrowings. The Company reports its intra-period changes in its revolving credit balance on a net basis in its condensed consolidated statement of cash flows as the Company intends the period of the borrowings to be brief, repaying borrowed amounts within 90 days . As of June 25, 2016 , the Company was in compliance with all required covenants stated in the Amended and Restated Loan Agreement. First Amendment to the Amended and Restated Loan and Security Agreement On June 10, 2015, the Loan Parties entered into a first amendment to the Amended and Restated Loan and Security Agreement (the “First Amendment”) by and among the Loan Parties, the Lenders and the Agent, which modifies the Amended and Restated Loan and Security Agreement. Amendments to the Amended and Restated Loan Agreement effected by the First Amendment included the addition of exceptions to the liens and asset sale covenants to permit the Loan Parties to enter into certain supply chain finance arrangements, as well as the addition of certain definitions related thereto. Second Amendment to the Amended and Restated Loan and Security Agreement On April 29, 2016, the Loan Parties entered into a second amendment to the Amended and Restated Loan and Security Agreement (the “Second Amendment”) by and among the Loan Parties, the Lenders and the Agent, which modifies the Amended and Restated Loan and Security Agreement. The primary amendment to the Amended and Restated Loan Agreement effected by the Second Amendment related to the expansion of the definition of permitted asset dispositions to include the sale or transfer of inventory to the ATMP JV pursuant to the Equity Interest Purchase Agreement between AMD and NFME. Third Amendment to the Amended and Restated Loan and Security Agreement On June 21, 2016, the Loan Parties entered into a third amendment to the Amended and Restated Loan and Security Agreement (the “Third Amendment”) by and among the Loan Parties, the Lenders and the Agent, which modifies the Amended and Restated Loan and Security Agreement. Amendments to the Amended and Restated Loan Agreement effected by the Third Amendment included the further expansion of the asset sale covenants to permit the Loan Parties to enter into certain supply chain finance arrangements. |
Basis of Presentation and Sig22
Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 25, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation. The accompanying unaudited condensed consolidated financial statements of Advanced Micro Devices, Inc. and its subsidiaries (the Company or AMD) have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. The results of operations for the quarter and six months ended June 25, 2016 shown in this report are not necessarily indicative of results to be expected for the full year ending December 31, 2016 . In the opinion of the Company’s management, the information contained herein reflects all adjustments necessary for a fair presentation of the Company’s results of operations, financial position and cash flows. All such adjustments are of a normal, recurring nature. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 26, 2015 . |
Fiscal Period | The Company uses a 52 or 53 week fiscal year ending on the last Saturday in December. The quarters and six months ended June 25, 2016 and June 27, 2015 each consisted of 13 weeks and 26 weeks, respectively. |
Principles of Consolidation | Principles of Consolidation. The condensed consolidated financial statements include the Company’s accounts and those of its wholly-owned subsidiaries. Upon consolidation, all significant intercompany accounts and transactions are eliminated. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Income Tax . In November 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-17, Balance Sheet Classification of Deferred Taxes (ASU 2015-17) , which simplifies the presentation of deferred income taxes by requiring that all deferred tax assets and liabilities to be classified as non-current on the consolidated balance sheet. The Company has adopted ASU 2015-17 prospectively in the first quarter of 2016. As a result, the Company netted $31 million of deferred tax assets and deferred tax liabilities, respectively, and reclassified $8 million current deferred tax assets and $6 million current deferred tax liabilities to non-current deferred tax assets and liabilities, respectively, on its condensed consolidated balance sheet as of March 26, 2016. The prior period information was not retrospectively adjusted. Interest—Imputation of Interest. In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03) , which requires an entity to present such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs will continue to be reported as interest expense. ASU 2015-03 is effective for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years, with early adoption permitted. The new guidance will be applied retrospectively to each prior period presented. In August 2015, the FASB issued ASU 2015 -15 to amend ASU 2015-03 and address debt issuance costs related to line-of-credit arrangements. ASU 2015-15 allows an entity to present debt issuance costs related to a line-of-credit as an asset and subsequently amortize the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the arrangement. This accounting standard update did not impact the effective date of the previously issued guidance. The Company retrospectively adopted ASU 2015-03 and 2015-15 in the first quarter of 2016. As a result, the Company r eclassified the financing costs from long term assets to long term debt by $23 million and $25 million as of March 26, 2016 and December 26, 2015, respectively, on its consolidated balance sheets. Inventory. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory (ASU 2015-11), which simplifies the measurement of inventory by requiring certain inventory to be measured at the lower of cost or net realizable value. The amendments in this ASU are effective for fiscal years beginning after December 15, 2016 and for interim periods therein, with early adoption permitted. The Company is currently evaluating the impact of its pending adoption of ASU 2015-11 on its consolidated financial statements. Disclosure of Going Concern Uncertainties. In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (ASU 2014-15) , which provides guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and to provide related footnote disclosures. ASU 2014-15 is effective for fiscal years ending after December 15, 2016 and for interim and annual periods therein with early adoption permitted. The Company is currently evaluating the impact of its pending adoption of ASU 2014-15 on its consolidated financial statements. Revenue Recognition. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers: Topic 606 (ASU 2014-09), which creates a single source of revenue guidance under U.S. GAAP for all companies in all industries. The core principle of ASU 2014-09 is that revenue should be recognized in a manner that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 defines a five-step process in order to achieve this core principle, which may require the use of judgment and estimates. ASU 2014-09 also requires expanded qualitative and quantitative disclosures relating to the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers, including significant judgments and estimates used. In July 2015, FASB announced a decision to defer the effective date for this ASU. ASU 2014-09 is effective for the Company in the first quarter of 2018 with early adoption permitted (for annual reporting periods beginning after December 15, 2016). The Company may adopt ASU 2014-09 either by using a full retrospective approach for all periods presented in the period of adoption or a modified retrospective approach. The Company is currently evaluating the impact of its pending adoption of ASU 2014-09 on its consolidated financial statements and has not yet determined which approach it will apply. Financial Instruments. In January 2016, FASB issued ASU No. 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01), which provides guidance related to accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period. The Company is currently evaluating the impact of its pending adoption of ASU 2016-01 on its consolidated financial statements. Leases. During February 2016, the FASB issued ASU No. 2016-02, Leases . (ASU 2016-02), which increases transparency and comparability among organizations by recognizing all lease transactions (with terms in excess of 12 months) on the balance sheet as a lease liability and a right-of-use asset (as defined). ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early application permitted. Upon adoption, the lessee will apply the new standard retrospectively to all periods presented or retrospectively using a cumulative effect adjustment in the year of adoption. The Company is currently evaluating the impact of its pending adoption of ASU 2016-02 on its consolidated financial statements. Investments . In March 2016, the FASB issued ASU No. 2016-07, Investments – Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting (ASU 2016-07), which requires the equity method investor to add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment qualifies for equity method accounting. ASU 2016-07 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years with early application permitted. The Company is currently evaluating the impact of its pending adoption of ASU 2016-07 on its consolidated financial statements. Stock Compensation. In March 2016, the FASB issued ASU No. 2016-09, Stock Compensation (ASU 2016-09), which is intended to simplify several aspects of the accounting for share-based payment award transactions. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, including interim periods. The Company is currently evaluating the impact of its pending adoption of ASU 2016-09 on its consolidated financial statements. |
Supplemental Balance Sheet In23
Supplemental Balance Sheet Information (Tables) | 6 Months Ended |
Jun. 25, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Inventories | Inventories June 25, December 26, (In millions) Raw materials $ 13 $ 16 Work in process 579 482 Finished goods 151 180 Total inventories, net $ 743 $ 678 |
Other Current Assets | Other Current Assets June 25, December 26, (In millions) Assets held-for-sale $ — $ 183 Other current assets 55 65 Total other current assets $ 55 $ 248 |
Property, Plant and Equipment | Property, Plant and Equipment June 25, December 26, (In millions) Leasehold improvements $ 147 $ 146 Equipment 791 821 Construction in progress 12 17 Property, plant and equipment, gross 950 984 Accumulated depreciation and amortization (781 ) (796 ) Total property, plant and equipment, net $ 169 $ 188 |
Other Assets | Other Assets June 25, December 26, (In millions) Software and technology licenses, net $ 231 $ 189 Other 59 109 Total other assets $ 290 $ 298 |
Accrued Liabilities | Accrued Liabilities June 25, December 26, (In millions) Accrued compensation and benefits $ 112 $ 95 Marketing programs and advertising expenses 99 109 Software and technology licenses payable 19 50 Other 162 218 Total accrued liabilities $ 392 $ 472 |
Other Current Liabilities | Other Current Liabilities June 25, December 26, (In millions) Liabilities related to assets held-for-sale $ — $ 79 Other current liabilities 61 45 Total other current liabilities $ 61 $ 124 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 6 Months Ended |
Jun. 25, 2016 | |
Earnings Per Share [Abstract] | |
Components of Basic and Diluted Income (Loss) Per Share | The following table sets forth the components of basic and diluted net income (loss) per share: Three Months Ended Six Months Ended June 25, June 27, June 25, June 27, (In millions, except per share amounts) Numerator – Net income (loss): Numerator for basic and diluted net income (loss) per share $ 69 $ (181 ) $ (40 ) $ (361 ) Denominator – Weighted average shares Denominator for basic net income (loss) per share 794 778 794 778 Effect of potentially dilutive shares: Employee stock options and restricted stock units 27 — — — Denominator for diluted net income (loss) per share 821 778 794 778 Net income (loss) per share: Basic $ 0.09 $ (0.23 ) $ (0.05 ) $ (0.46 ) Diluted $ 0.08 $ (0.23 ) $ (0.05 ) $ (0.46 ) |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 25, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Cash and Cash Equivalents | Cash and financial instruments measured and recorded at fair value on a recurring basis as of June 25, 2016 and December 26, 2015 are summarized below: June 25, 2016 December 26, 2015 (In millions) Cash and cash equivalents Cash $ 407 $ 409 Level 2 (1) (2) Commercial paper 550 376 Total level 2 550 376 Total $ 957 $ 785 (1) The Company did no t have any transfers between Level 1 and Level 2 of the fair value hierarchy during the quarter and six months ended June 25, 2016 or the year ended December 26, 2015 . (2) The Company’s Level 2 short-term investments are valued using broker reports that utilize quoted market prices for identical or comparable instruments. Brokers gather observable inputs for all of the Company’s fixed income securities from a variety of industry data providers and other third-party sources. |
Financial Instruments Not Recorded at Fair Value on a Recurring Basis | The carrying amounts and estimated fair values of financial instruments not recorded at fair value are as follows: June 25, 2016 December 26, 2015 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value (In millions) Short-term debt $ 226 $ 226 $ 230 $ 230 Long-term debt (1) $ 2,002 $ 1,839 $ 2,000 $ 1,372 (1) Carrying amounts of long-term debt are net of unamortized debt issuance costs of $23 million as of June 25, 2016 and $25 million as of December 26, 2015 , based on the adoption of ASU 2015-03. |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Operations | The following table shows the amount of gain (loss) included in accumulated other comprehensive income (loss), the amount of gain (loss) reclassified from accumulated other comprehensive income (loss) and included in earnings related to the foreign currency forward contracts designated as cash flow hedges and the amount of gain (loss) included in other income (expense), net, related to contracts not designated as hedging instruments, which was allocated in the condensed consolidated statements of operations: Three Months Ended Six Months Ended June 25, June 27, June 25, June 27, (In millions) Foreign Currency Forward Contracts - gains (losses) Contracts designated as cash flow hedging instruments Other comprehensive income (loss) $ 2 $ 7 $ 8 $ — Cost of sales — — — (1 ) Research and development 1 (2 ) (1 ) (4 ) Marketing, general and administrative — (2 ) — $ (3 ) Contracts not designated as hedging instruments Other income (expense), net $ 2 $ — $ 2 $ (1 ) |
Schedule of Fair Value Amounts of Foreign Currency Forward Contracts in Balance Sheet | The following table shows the fair value amounts included in Other current assets should the foreign currency forward contracts be in a gain position or included in Other current liabilities should these contracts be in a loss position. These amounts were recorded in the Company's condensed consolidated balance sheets as follows: June 25, December 26, (In millions) Foreign Currency Forward Contracts - gains (losses) Contracts designated as cash flow hedging instruments $ 2 $ (6 ) Contracts not designated as hedging instruments $ 1 $ — |
Schedule of Fair Value Amounts of Fair Value Hedge Derivative Contracts in Balance Sheet | The following table shows the fair value amounts included in Other assets should the fair value hedge derivative contracts be in a gain position or included in Other long-term liabilities should these contracts be in a loss position. These amounts were recorded in the Company’s condensed consolidated balance sheets as follows: June 25, December 26, (In millions) Interest Rate Swap Contracts - gains (losses) Contracts designated as fair value hedging instruments $ 10 $ 7 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 25, 2016 | |
Segment Reporting [Abstract] | |
Summary of Net Revenue and Operating Income (Loss) by Segment | The following table provides a summary of net revenue and operating income (loss) by segment: Three Months Ended Six Months Ended June 25, June 27, June 25, June 27, (In millions) Net revenue: Computing and Graphics $ 435 $ 379 $ 895 $ 911 Enterprise, Embedded and Semi-Custom 592 563 964 1,061 Total net revenue $ 1,027 $ 942 $ 1,859 $ 1,972 Operating income (loss): Computing and Graphics $ (81 ) $ (147 ) $ (151 ) $ (222 ) Enterprise, Embedded and Semi-Custom 84 27 100 72 All Other (11 ) (17 ) (25 ) (124 ) Total operating loss $ (8 ) $ (137 ) $ (76 ) $ (274 ) The following table provides major items included in All Other category: Three Months Ended Six Months Ended June 25, June 27, June 25, June 27, (In millions) Operating loss: Stock-based compensation expense $ (18 ) $ (17 ) $ (34 ) $ (34 ) Restructuring and other special charges, net 7 — 10 (87 ) Other — — (1 ) (3 ) Total operating loss $ (11 ) $ (17 ) $ (25 ) $ (124 ) |
Stock-Based Incentive Compens27
Stock-Based Incentive Compensation Plans (Tables) | 6 Months Ended |
Jun. 25, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock-based Compensation Expense, Allocation of Recognized Period Costs | The following table summarizes stock-based compensation expense related to employee stock options and restricted stock units, which is allocated within the Company’s condensed consolidated statements of operations as follows: Three Months Ended Six Months Ended June 25, June 27, June 25, June 27, (In millions) Cost of sales $ — $ 1 $ 1 $ 2 Research and development 10 10 19 20 Marketing, general and administrative 8 6 14 12 Stock-based compensation expense, net of tax of $0 $ 18 $ 17 $ 34 $ 34 |
Weighted Average Valuation Assumptions for Stock Options | The weighted average assumptions applied in the lattice-binomial model that the Company uses to estimate the fair value of employee stock options are as follows: Three Months Ended Six Months Ended June 25, June 27, June 25, June 27, Expected volatility N/A 54.86 % N/A 54.43 % Risk-free interest rate N/A 1.15 % N/A 1.21 % Expected dividends N/A 0.00 % N/A 0.00 % Expected life N/A 3.91 years N/A 3.91 years |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 25, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Changes in Estimated Liability for Product Warranty | Changes in the Company’s estimated liability for product warranty were as follows: Three Months Ended Six Months Ended June 25, June 27, June 25, June 27, (In millions) Beginning balance $ 13 $ 21 $ 15 $ 19 New warranties issued 5 6 10 14 Settlements (4 ) (6 ) (8 ) (15 ) Changes in liability for pre-existing warranties, including expirations (3 ) (4 ) (6 ) (1 ) Ending balance $ 11 $ 17 $ 11 $ 17 |
Restructuring and Other Speci29
Restructuring and Other Special Charges (Tables) | 6 Months Ended |
Jun. 25, 2016 | |
2015 Restructuring Plan | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Restructuring Activities and Related Liabilities | The following table provides a summary of the restructuring activities in the first six months of 2016 and the related liabilities recorded in Other current liabilities and Other long-term liabilities on the Company’s condensed consolidated balance sheets as of June 25, 2016 : Severance Other exit Total (In millions) Balance as of December 26, 2015 $ 14 $ — $ 14 Charges (reversals), net (2 ) — (2 ) Cash payments (7 ) — (7 ) Balance as of June 25, 2016 $ 5 $ — $ 5 |
2014 Restructuring Plan | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Restructuring Activities and Related Liabilities | The following table provides a summary of the restructuring activities in the first six months of 2016 and the related liabilities recorded in Other current liabilities and Other long-term liabilities on the Company’s condensed consolidated balance sheets as of June 25, 2016 : Severance and related benefits Other exit related costs Total (In millions) Balance as of December 26, 2015 $ 5 $ 15 $ 20 Charges (reversals), net (1 ) (7 ) (8 ) Cash payments (1 ) (2 ) (3 ) Balance as of June 25, 2016 $ 3 $ 6 $ 9 |
Accumulated Other Comprehensi30
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 25, 2016 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Three Months Ended June 25, June 27, Unrealized gains (losses) on available-for-sale securities Unrealized gains (losses) on cash flow hedges Total Unrealized gains (losses) on available-for-sale securities Unrealized gains (losses) on cash flow hedges Total (In millions) Beginning balance $ (3 ) $ (3 ) $ (6 ) $ 1 $ (13 ) $ (12 ) Unrealized gains (losses) arising during the period 1 3 4 — 3 3 Reclassification adjustment for (gains) losses realized and included in net income (loss) — (1 ) (1 ) — 4 4 Tax effect — — — — — — Total other comprehensive income (loss) 1 2 3 — 7 7 Ending balance $ (2 ) $ (1 ) $ (3 ) $ 1 $ (6 ) $ (5 ) Six Months Ended June 25, June 27, Unrealized gains (losses) on available-for-sale securities Unrealized gains (losses) on cash flow hedges Total Unrealized gains (losses) on available-for-sale securities Unrealized gains (losses) on cash flow hedges Total (In millions) Beginning balance $ (1 ) $ (7 ) $ (8 ) $ 1 $ (6 ) $ (5 ) Unrealized gains (losses) arising during the period (2 ) 7 5 — (8 ) (8 ) Reclassification adjustment for (gains) losses realized and included in net income (loss) — 2 2 — 8 8 Tax effect 1 (3 ) (2 ) — — — Total other comprehensive income (loss) (1 ) 6 5 — — — Ending balance $ (2 ) $ (1 ) $ (3 ) $ 1 $ (6 ) $ (5 ) |
Basis of Presentation and Sig31
Basis of Presentation and Significant Accounting Policies (Details) - USD ($) $ in Millions | Jun. 25, 2016 | Mar. 26, 2016 | Dec. 26, 2015 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Unamortized debt issuance costs | $ 23 | $ 25 | |
Accounting Standards Update 2015-03 | Long-term Assets | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Unamortized debt issuance costs | $ (23) | (25) | |
Accounting Standards Update 2015-03 | Long-term Debt | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Unamortized debt issuance costs | 23 | $ 25 | |
New Accounting Pronouncement, Early Adoption, Effect | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Deferred tax assets | 31 | ||
Deferred tax liabilities | 31 | ||
Reclassification of current deferred tax assets to noncurrent | 8 | ||
Reclassification of current deferred tax liabilities to noncurrent | $ 6 |
Globalfoundries (Details)
Globalfoundries (Details) - Affiliate of Largest Stockholder - GF - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 25, 2016 | Jun. 27, 2015 | |
Related Party Transaction [Line Items] | ||||
Purchases from related party | $ 85 | $ 246 | $ 293 | $ 416 |
Currently known purchase obligations | $ 434 | $ 434 |
Supplemental Balance Sheet In33
Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Jun. 25, 2016 | Dec. 26, 2015 | |
Inventories | |||
Raw materials | $ 13 | $ 16 | |
Work in process | 579 | 482 | |
Finished goods | 151 | 180 | |
Total inventories, net | 743 | 678 | |
Other Current Assets | |||
Assets held-for-sale | 0 | 183 | |
Other current assets | 55 | 65 | |
Total other current assets | [1] | 55 | 248 |
Property, Plant and Equipment | |||
Leasehold improvements | 147 | 146 | |
Equipment | 791 | 821 | |
Construction in progress | 12 | 17 | |
Property, plant and equipment, gross | 950 | 984 | |
Accumulated depreciation and amortization | (781) | (796) | |
Total property, plant and equipment, net | 169 | 188 | |
Other Assets | |||
Software and technology licenses, net | 231 | 189 | |
Other | 59 | 109 | |
Total other assets | [1],[2] | 290 | 298 |
Accrued Liabilities | |||
Accrued compensation and benefits | 112 | 95 | |
Marketing programs and advertising expenses | 99 | 109 | |
Software and technology licenses payable | 19 | 50 | |
Other | 162 | 218 | |
Total accrued liabilities | [1] | 392 | 472 |
Other Current Liabilities | |||
Liabilities related to assets held-for-sale | 0 | 79 | |
Other current liabilities | 61 | 45 | |
Total other current liabilities | $ 61 | $ 124 | |
[1] | Amounts reflected adoption of FASB ASU 2015-17, Balance Sheet Classification of Deferred Taxes beginning in the first quarter of 2016. | ||
[2] | Amounts reflected adoption of FASB ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs beginning in the first quarter of 2016. |
Equity Interest Purchase Agre34
Equity Interest Purchase Agreement - ATMP Joint Venture (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 25, 2016 | Jun. 27, 2015 | Apr. 29, 2016 | Dec. 26, 2015 | |
Investment [Line Items] | ||||||
Ownership percentage | 15.00% | 15.00% | ||||
Proceeds from sale of equity interests in ATMP JV | $ 351 | $ 351 | $ 0 | |||
Estimated cash consideration | 320 | 320 | ||||
Gain on sale of equity interests in ATMP JV | 150 | 0 | ||||
Excess of fair value of retained interest over net book values | 12 | |||||
Investment in ATMP JV | 62 | 62 | $ 0 | |||
Payable to ATMP JV | 150 | 150 | $ 0 | |||
Equity in income (loss) of ATMP JV | (3) | $ 0 | (3) | $ 0 | ||
ATMP JV | ||||||
Investment [Line Items] | ||||||
Investment in ATMP JV | 62 | 62 | ||||
Purchases from related party | 66 | |||||
Payable to ATMP JV | 150 | 150 | ||||
Equity in income (loss) of ATMP JV | (3) | (3) | ||||
Other income (expense), net | ||||||
Investment [Line Items] | ||||||
Gain on sale of equity interests in ATMP JV | $ 150 | $ 150 | ||||
NFME's Affiliates | ||||||
Investment [Line Items] | ||||||
Ownership percentage | 85.00% | |||||
Company's Subsidiaries | ||||||
Investment [Line Items] | ||||||
Ownership percentage | 15.00% |
Equity Joint Venture - Intell35
Equity Joint Venture - Intellectual Property Licensing Agreement (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 25, 2016 | Jun. 27, 2015 | Feb. 29, 2016 | Dec. 26, 2015 | |
Schedule of Equity Method Investments [Line Items] | ||||||
Operating income related to licensed IP | $ 26,000,000 | $ 0 | $ 33,000,000 | $ 0 | ||
Equity method investments | 62,000,000 | 62,000,000 | $ 0 | |||
China JVs | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Estimated license fees expected to be earned over several years pursuant to a licensing agreement | $ 293,000,000 | |||||
Operating income related to licensed IP | 26,000,000 | 33,000,000 | ||||
Equity method investments | $ 0 | $ 0 |
Net Income (Loss) Per Share (De
Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 25, 2016 | Jun. 27, 2015 | |
Numerator – Net income (loss): | ||||
Numerator for basic and diluted net income (loss) per share | $ 69 | $ (181) | $ (40) | $ (361) |
Denominator – Weighted average shares | ||||
Denominator for basic net income (loss) per share (in shares) | 794 | 778 | 794 | 778 |
Effect of potentially dilutive shares: | ||||
Employee stock options and restricted stock units (in shares) | 27 | 0 | 0 | 0 |
Denominator for diluted net income (loss) per share (in shares) | 821 | 778 | 794 | 778 |
Net income (loss) per share: | ||||
Basic (in usd per share) | $ 0.09 | $ (0.23) | $ (0.05) | $ (0.46) |
Diluted (in usd per share) | $ 0.08 | $ (0.23) | $ (0.05) | $ (0.46) |
Stock Options and Restricted Stock Units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares | 19 | 51 | 41 | 63 |
Financial Instruments (Cash and
Financial Instruments (Cash and Cash Equivalents and Fair Value Measurements) (Details) - USD ($) | Jun. 25, 2016 | Dec. 26, 2015 |
Schedule of Investments [Line Items] | ||
Cash and cash equivalents | $ 957,000,000 | $ 785,000,000 |
Fair value, level 1 to level 2 transfers, amount | 0 | 0 |
Fair value, level 2 to level 1 transfers, amount | 0 | 0 |
Level 2 | ||
Schedule of Investments [Line Items] | ||
Cash and cash equivalents | 550,000,000 | 376,000,000 |
Cash | ||
Schedule of Investments [Line Items] | ||
Cash and cash equivalents | 407,000,000 | 409,000,000 |
Commercial Paper | Level 2 | ||
Schedule of Investments [Line Items] | ||
Cash and cash equivalents | $ 550,000,000 | $ 376,000,000 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) - Level 1 - USD ($) $ in Millions | Jun. 25, 2016 | Dec. 26, 2015 |
Money Market Funds | ||
Schedule of Investments [Line Items] | ||
Available-for-sale investments used as collateral | $ 3 | $ 1 |
Mutual Funds | ||
Schedule of Investments [Line Items] | ||
Restricted investments | $ 14 | $ 15 |
Financial Instruments (Schedule
Financial Instruments (Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments not Recorded at Fair Value) (Details) - USD ($) $ in Millions | Jun. 25, 2016 | Dec. 26, 2015 |
Carrying Amount | ||
Short-term debt | $ 226 | $ 230 |
Long-term debt | 2,002 | 2,000 |
Estimated Fair Value | ||
Unamortized debt issuance costs | 23 | 25 |
Level 2 | ||
Estimated Fair Value | ||
Short-term debt | 226 | 230 |
Long-term debt | $ 1,839 | $ 1,372 |
Financial Instruments (Gain (Lo
Financial Instruments (Gain (Loss) from Hedging Transactions) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 25, 2016 | Jun. 27, 2015 | |
Contracts designated as cash flow hedging instruments | Cash flow hedging instruments | ||||
Foreign Currency Forward Contracts - gains (losses) | ||||
Other comprehensive income (loss) | $ 2 | $ 7 | $ 8 | $ 0 |
Contracts designated as cash flow hedging instruments | Cash flow hedging instruments | Cost of sales | ||||
Foreign Currency Forward Contracts - gains (losses) | ||||
Gain (loss) reclassified from accumulated OCI into income | 0 | 0 | 0 | (1) |
Contracts designated as cash flow hedging instruments | Cash flow hedging instruments | Research and development | ||||
Foreign Currency Forward Contracts - gains (losses) | ||||
Gain (loss) reclassified from accumulated OCI into income | 1 | (2) | (1) | (4) |
Contracts designated as cash flow hedging instruments | Cash flow hedging instruments | Marketing, general and administrative | ||||
Foreign Currency Forward Contracts - gains (losses) | ||||
Gain (loss) reclassified from accumulated OCI into income | 0 | (2) | 0 | (3) |
Contracts not designated as hedging instruments | Other income (expense), net | ||||
Foreign Currency Forward Contracts - gains (losses) | ||||
Gain (loss) included in other income (expense) | $ 2 | $ 0 | $ 2 | $ (1) |
Financial Instruments (Summary
Financial Instruments (Summary of Derivative Instruments) (Details) - USD ($) $ in Millions | Jun. 25, 2016 | Dec. 26, 2015 |
Contracts designated as cash flow hedging instruments | Foreign Currency Forward Contracts | ||
Foreign Currency Forward Contracts - gains (losses) | ||
Derivative, notional amount | $ 265 | $ 156 |
Level 2 | Foreign Currency Forward Contracts | ||
Foreign Currency Forward Contracts - gains (losses) | ||
Contracts not designated as hedging instruments | 1 | 0 |
Level 2 | Contracts designated as cash flow hedging instruments | Foreign Currency Forward Contracts | ||
Foreign Currency Forward Contracts - gains (losses) | ||
Contracts designated as cash flow hedging instruments | 2 | (6) |
Level 2 | Contracts designated as fair value hedging instruments | Interest Rate Swap Contracts | ||
Interest Rate Swap Contracts - gains (losses) | ||
Contracts designated as fair value hedging instruments | $ 10 | $ 7 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 25, 2016 | Jun. 27, 2015 | Dec. 26, 2015 | |
Income Tax Disclosure [Abstract] | |||||
Provision for income taxes | $ 29 | $ 1 | $ 30 | $ 4 | |
Tax benefits arising from other comprehensive income and Canadian tax credits | (2) | ||||
Provision (Benefit) for Income Taxes [Line Items] | |||||
Foreign taxes in profitable locations | 2 | $ 1 | $ 4 | ||
Withholding taxes applicable to license fee revenue from foreign locations | $ 2 | ||||
Ownership percentage | 15.00% | 15.00% | |||
Income tax provision related to activities of two former subsidiaries | $ 2 | ||||
Gross unrecognized tax benefits | $ 41 | $ 41 | |||
China | |||||
Provision (Benefit) for Income Taxes [Line Items] | |||||
Foreign taxes in profitable locations | 21 | ||||
Withholding tax expense of future repatriation of foreign gains | $ 6 |
Segment Reporting (Net Revenue
Segment Reporting (Net Revenue and Operating Income (Loss) by Segment) (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2016USD ($) | Jun. 27, 2015USD ($) | Jun. 25, 2016USD ($)segment | Jun. 27, 2015USD ($) | |
Segment Reporting [Abstract] | ||||
Number of reportable segments | segment | 2 | |||
Segment Reporting Information [Line Items] | ||||
Net revenue | $ 1,027 | $ 942 | $ 1,859 | $ 1,972 |
Operating income (loss) | (8) | (137) | (76) | (274) |
Operating Segments | Computing and Graphics | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue | 435 | 379 | 895 | 911 |
Operating income (loss) | (81) | (147) | (151) | (222) |
Operating Segments | Enterprise, Embedded and Semi-Custom | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue | 592 | 563 | 964 | 1,061 |
Operating income (loss) | 84 | 27 | 100 | 72 |
All Other | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | $ (11) | $ (17) | $ (25) | $ (124) |
Segment Reporting (All Other Ca
Segment Reporting (All Other Category) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 25, 2016 | Jun. 27, 2015 | |
Operating loss: | ||||
Restructuring and other special charges, net | $ 7 | $ 0 | $ 10 | $ (87) |
Operating loss | (8) | (137) | (76) | (274) |
All Other | ||||
Operating loss: | ||||
Stock-based compensation expense | (18) | (17) | (34) | (34) |
Restructuring and other special charges, net | 7 | 0 | 10 | (87) |
Other | 0 | 0 | (1) | (3) |
Operating loss | $ (11) | $ (17) | $ (25) | $ (124) |
Stock-Based Incentive Compens45
Stock-Based Incentive Compensation Plans (Share-based Compensation, Allocation of Recognized Period Costs) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 25, 2016 | Jun. 27, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense, net of tax | $ 18,000,000 | $ 17,000,000 | $ 34,000,000 | $ 34,000,000 |
Income tax benefit associated with stock-based compensation expense | 0 | 0 | 0 | 0 |
Cost of sales | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense, net of tax | 0 | 1,000,000 | 1,000,000 | 2,000,000 |
Research and development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense, net of tax | 10,000,000 | 10,000,000 | 19,000,000 | 20,000,000 |
Marketing, general and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense, net of tax | $ 8,000,000 | $ 6,000,000 | $ 14,000,000 | $ 12,000,000 |
Stock-Based Incentive Compens46
Stock-Based Incentive Compensation Plans (Weighted-average Valuation Assumptions) (Details) - Stock Options | 3 Months Ended | 6 Months Ended |
Jun. 27, 2015 | Jun. 27, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 54.86% | 54.43% |
Risk-free interest rate | 1.15% | 1.21% |
Expected dividends | 0.00% | 0.00% |
Expected life | 3 years 10 months 27 days | 3 years 10 months 27 days |
Stock-Based Incentive Compens47
Stock-Based Incentive Compensation Plans (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 25, 2016 | Jun. 27, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Excess tax benefit related to stock-based compensation | $ 0 | $ 0 | $ 0 | $ 0 |
Stock options, shares granted | 500,000 | 0 | 700,000 | |
Stock options, shares granted, weighted average estimated grant date fair value per share (in usd per share) | $ 1.06 | $ 1.12 | ||
Restricted stock units, shares granted | 5,600,000 | 4,100,000 | 6,400,000 | 9,400,000 |
Restricted stock units, shares granted, weighted average grant date fair value (in usd per share) | $ 2.97 | $ 2.46 | $ 2.86 | $ 2.50 |
Commitments and Contingencies48
Commitments and Contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 25, 2016 | Jun. 27, 2015 | |
Changes in Product Warranty Liability [Roll Forward] | ||||
Beginning balance | $ 13 | $ 21 | $ 15 | $ 19 |
New warranties issued | 5 | 6 | 10 | 14 |
Settlements | (4) | (6) | (8) | (15) |
Changes in liability for pre-existing warranties, including expirations | (3) | (4) | (6) | (1) |
Ending balance | $ 11 | $ 17 | $ 11 | $ 17 |
Restructuring and Other Speci49
Restructuring and Other Special Charges (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 25, 2016 | Jun. 27, 2015 | Dec. 26, 2015 | Dec. 27, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and other special charges, net | $ (7) | $ 0 | $ (10) | $ 87 | ||
Dense Server Systems Business Exit | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and other special charges, net | 76 | |||||
Acquired intangible assets impairment charge | 62 | |||||
Asset impairment charges | 7 | |||||
Severance and related benefits charges | 4 | |||||
Contract or program termination charges | 3 | |||||
2015 Restructuring Plan | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Reduction of the Company's global workforce (as a percent) | 5.00% | |||||
Restructuring charge reversal | 2 | |||||
2015 Restructuring Plan | Severance and Related Benefits | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charge reversal | 2 | |||||
2015 Restructuring Plan | Other Exit Related Costs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charge reversal | 0 | |||||
2014 Restructuring Plan | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Reduction of the Company's global workforce (as a percent) | 6.00% | |||||
Restructuring charge | 11 | |||||
Restructuring charge reversal | 8 | |||||
2014 Restructuring Plan | Severance and Related Benefits | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charge | 4 | |||||
Restructuring charge reversal | 1 | |||||
2014 Restructuring Plan | Other Exit Related Costs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charge | $ 7 | |||||
Restructuring charge reversal | 7 | |||||
Restructuring charge reversal related to facility costs | $ 5 |
Restructuring and Other Speci50
Restructuring and Other Special Charges (Schedule of Restructuring Activities and Related Liabilities) (Details) $ in Millions | 6 Months Ended |
Jun. 25, 2016USD ($) | |
2015 Restructuring Plan | |
Restructuring Reserve [Roll Forward] | |
Balance as of beginning of period | $ 14 |
Charges (reversals), net | (2) |
Cash payments | (7) |
Balance as of end of period | 5 |
2015 Restructuring Plan | Severance and related benefits | |
Restructuring Reserve [Roll Forward] | |
Balance as of beginning of period | 14 |
Charges (reversals), net | (2) |
Cash payments | (7) |
Balance as of end of period | 5 |
2015 Restructuring Plan | Other exit related costs | |
Restructuring Reserve [Roll Forward] | |
Balance as of beginning of period | 0 |
Charges (reversals), net | 0 |
Cash payments | 0 |
Balance as of end of period | 0 |
2014 Restructuring Plan | |
Restructuring Reserve [Roll Forward] | |
Balance as of beginning of period | 20 |
Charges (reversals), net | (8) |
Cash payments | (3) |
Balance as of end of period | 9 |
2014 Restructuring Plan | Severance and related benefits | |
Restructuring Reserve [Roll Forward] | |
Balance as of beginning of period | 5 |
Charges (reversals), net | (1) |
Cash payments | (1) |
Balance as of end of period | 3 |
2014 Restructuring Plan | Other exit related costs | |
Restructuring Reserve [Roll Forward] | |
Balance as of beginning of period | 15 |
Charges (reversals), net | (7) |
Cash payments | (2) |
Balance as of end of period | $ 6 |
Accumulated Other Comprehensi51
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 25, 2016 | Jun. 27, 2015 | |
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | $ (412) | |||
Total other comprehensive income (loss) | $ 3 | $ 7 | 5 | $ 0 |
Ending balance | (413) | (413) | ||
Unrealized gains (losses) on available-for-sale securities | ||||
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (3) | 1 | (1) | 1 |
Unrealized gains (losses) arising during the period | 1 | 0 | (2) | 0 |
Reclassification adjustment for (gains) losses realized and included in net income (loss) | 0 | 0 | 0 | 0 |
Tax effect | 0 | 0 | 1 | 0 |
Total other comprehensive income (loss) | 1 | 0 | (1) | 0 |
Ending balance | (2) | 1 | (2) | 1 |
Unrealized gains (losses) on cash flow hedges | ||||
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (3) | (13) | (7) | (6) |
Unrealized gains (losses) arising during the period | 3 | 3 | 7 | (8) |
Reclassification adjustment for (gains) losses realized and included in net income (loss) | (1) | 4 | 2 | 8 |
Tax effect | 0 | 0 | (3) | 0 |
Total other comprehensive income (loss) | 2 | 7 | 6 | 0 |
Ending balance | (1) | (6) | (1) | (6) |
Total | ||||
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (6) | (12) | (8) | (5) |
Unrealized gains (losses) arising during the period | 4 | 3 | 5 | (8) |
Reclassification adjustment for (gains) losses realized and included in net income (loss) | (1) | 4 | 2 | 8 |
Tax effect | 0 | 0 | (2) | 0 |
Total other comprehensive income (loss) | 3 | 7 | 5 | 0 |
Ending balance | $ (3) | $ (5) | $ (3) | $ (5) |
Secured Revolving Line of Cre52
Secured Revolving Line of Credit (Details) - USD ($) | Apr. 14, 2015 | Jun. 25, 2016 | Dec. 26, 2015 |
Line of Credit Facility [Line Items] | |||
Secured revolving line of credit, outstanding balance | $ 226,000,000 | $ 230,000,000 | |
Secured revolving line of credit, interest rate at period end | 4.25% | 4.00% | |
Outstanding letters of credit | $ 21,000,000 | ||
Amount available for future borrowings (up to) | $ 163,000,000 | ||
Debt repayment period | 90 days | ||
Secured Revolving Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Secured revolving line of credit, maximum borrowing capacity | $ 500,000,000 | ||
Additional borrowing capacity (up to) | $ 200,000,000 | ||
Secured Revolving Line of Credit | Maximum | |||
Line of Credit Facility [Line Items] | |||
Percentage of eligible accounts receivable | 85.00% | ||
Percentage of certain qualified eligible accounts receivable | 90.00% | ||
Letter of Credit | |||
Line of Credit Facility [Line Items] | |||
Secured revolving line of credit, maximum borrowing capacity | $ 75,000,000 |