Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 10, 2017 | Jun. 25, 2016 | |
Document Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | AMD | ||
Entity Registrant Name | ADVANCED MICRO DEVICES INC | ||
Entity Central Index Key | 2,488 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 940,758,118 | ||
Entity Public Float | $ 3.9 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Income Statement [Abstract] | |||
Net revenue | $ 4,272 | $ 3,991 | $ 5,506 |
Cost of sales | 3,274 | 2,911 | 3,667 |
Gross margin | 998 | 1,080 | 1,839 |
Research and development | 1,008 | 947 | 1,072 |
Marketing, general and administrative | 460 | 482 | 604 |
Amortization of acquired intangible assets | 0 | 3 | 14 |
Restructuring and other special charges, net | (10) | 129 | 71 |
Licensing gain | (88) | 0 | 0 |
Goodwill impairment charge | 0 | 0 | 233 |
Operating loss | (372) | (481) | (155) |
Interest expense | (156) | (160) | (177) |
Other income (expense), net | 80 | (5) | (66) |
Loss before equity loss and income taxes | (448) | (646) | (398) |
Provision for income taxes | 39 | 14 | 5 |
Equity in income (loss) of ATMP JV | (10) | 0 | 0 |
Net loss | $ (497) | $ (660) | $ (403) |
Net loss per share | |||
Basic (USD per share) | $ (0.60) | $ (0.84) | $ (0.53) |
Diluted (USD per share) | $ (0.60) | $ (0.84) | $ (0.53) |
Shares used in per share calculation | |||
Basic (shares) | 835 | 783 | 768 |
Diluted (shares) | 835 | 783 | 768 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (497) | $ (660) | $ (403) |
Unrealized gains (losses) on available-for-sale securities: | |||
Unrealized gains (losses) arising during period, net of tax effects of $1, $0 and $0 | 0 | (2) | 0 |
Unrealized gains (losses) on cash flow hedges: | |||
Unrealized gains (losses) arising during period, net of tax effects of $2, $0 and $0 | 1 | (22) | (9) |
Reclassification adjustment for (gains) losses realized and included in net loss, net of tax effect of $0 | 2 | 21 | 6 |
Total change in unrealized gains (losses) on cash flow hedges, net of tax | 3 | (1) | (3) |
Total other comprehensive income (loss) | 3 | (3) | (3) |
Total comprehensive loss | $ (494) | $ (663) | $ (406) |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Loss (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Tax effect related to available-for-sale securities: | |||
Unrealized gains (losses) arising during period on available-for-sale securities, tax | $ (1) | $ 0 | $ 0 |
Tax effect related to cash flow hedges: | |||
Unrealized gains (losses) arising during period on cash flow hedges, tax | 2 | 0 | 0 |
Reclassification adjustment for (gains) losses realized and included in net income loss, tax | $ 0 | $ 0 | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 26, 2015 | |
Current assets: | |||
Cash and cash equivalents | $ 1,264 | $ 785 | |
Accounts receivable, net | 311 | 533 | |
Inventories, net | 751 | 678 | |
Prepayment and other - GLOBALFOUNDRIES | 32 | 33 | |
Prepaid expenses | 63 | 43 | |
Other current assets | [1] | 109 | 248 |
Total current assets | 2,530 | 2,320 | |
Property, plant and equipment, net | 164 | 188 | |
Goodwill | 289 | 278 | |
Investment in ATMP JV | 59 | 0 | |
Other assets | [1],[2] | 279 | 298 |
Total assets | 3,321 | 3,084 | |
Current liabilities: | |||
Short-term debt | 0 | 230 | |
Accounts payable | 440 | 279 | |
Payable to GLOBALFOUNDRIES | 255 | 245 | |
Payable to ATMP JV | 128 | 0 | |
Accrued liabilities | [1] | 391 | 472 |
Other current liabilities | 69 | 124 | |
Deferred income on shipments to distributors | 63 | 53 | |
Total current liabilities | 1,346 | 1,403 | |
Long-term debt, net | [2] | 1,435 | 2,007 |
Other long-term liabilities | [1] | 124 | 86 |
Commitments and contingencies (see Notes 16 and 17) | |||
Stockholders’ equity (deficit): | |||
Common stock, par value $0.01; 1,500 shares authorized on December 31, 2016 and December 26, 2015; shares issued: 949 shares on December 31, 2016 and 806 shares on December 26, 2015; shares outstanding: 935 shares on December 31, 2016 and 792 shares on December 26, 2015 | 9 | 8 | |
Additional paid-in capital | 8,334 | 7,017 | |
Treasury stock, at cost (14 shares on December 31, 2016 and December 26, 2015 ) | (119) | (123) | |
Accumulated deficit | (7,803) | (7,306) | |
Accumulated other comprehensive loss | (5) | (8) | |
Total stockholders’ equity (deficit) | 416 | (412) | |
Total liabilities and stockholders’ equity (deficit) | $ 3,321 | $ 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. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2016 | Dec. 26, 2015 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,500,000,000 | 1,500,000,000 |
Common stock, shares issued | 949,000,000 | 806,000,000 |
Common stock, shares outstanding | 935,000,000 | 792,000,000 |
Treasury stock, shares | 14,000,000 | 14,000,000 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders Equity (Deficit) - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Deficit | Accumulated other comprehensive loss |
Beginning Balance, shares at Dec. 28, 2013 | 725 | |||||
Beginning balance at Dec. 28, 2013 | $ 544 | $ 7 | $ 6,894 | $ (112) | $ (6,243) | $ (2) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (403) | (403) | ||||
Other comprehensive income (loss) | (3) | (3) | ||||
Common stock issued under stock-based compensation plans, net of tax withholding, shares | 16 | |||||
Common stock issued under stock-based compensation plans, net of tax withholding | (2) | 4 | (6) | |||
Common stock issued by exercise of warrants, shares | 35 | |||||
Common stock issued by exercise of warrants | $ 1 | (1) | ||||
Stock-based compensation | 81 | 81 | ||||
Stock-based compensation related to restructuring and other special charges, net | 5 | 5 | ||||
Adjustment to equity component of the 6.00% Notes resulting from debt buyback | (35) | (35) | ||||
Ending balance at Dec. 27, 2014 | 187 | $ 8 | 6,949 | (119) | (6,646) | (5) |
Ending Balance, shares at Dec. 27, 2014 | 776 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (660) | (660) | ||||
Other comprehensive income (loss) | (3) | (3) | ||||
Common stock issued under stock-based compensation plans, net of tax withholding, shares | 16 | |||||
Common stock issued under stock-based compensation plans, net of tax withholding | 1 | 5 | (4) | |||
Stock-based compensation | 63 | 63 | ||||
Ending balance at Dec. 26, 2015 | $ (412) | $ 8 | 7,017 | (123) | (7,306) | (8) |
Ending Balance, shares at Dec. 26, 2015 | 792 | 792 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | $ (497) | (497) | ||||
Other comprehensive income (loss) | 3 | 3 | ||||
Common stock issued under stock-based compensation plans, net of tax withholding, shares | 27 | |||||
Common stock issued under stock-based compensation plans, net of tax withholding | 16 | 20 | (4) | |||
Stock-based compensation | 86 | 86 | ||||
Equity component of the 2.125% Notes, net | 305 | 305 | ||||
Warrant issued related to sixth amendment to the WSA | 240 | 240 | ||||
Issuance of common stock, net of issuance costs, shares | 115 | |||||
Issuance of common stock, net of issuance costs | 667 | $ 1 | 666 | |||
Issuance of common stock to partially settle the 7.00% Notes, shares | 1 | |||||
Issuance of common stock to partially settle the 7.00% Notes | 8 | 8 | ||||
Ending balance at Dec. 31, 2016 | $ 416 | $ 9 | $ 8,334 | $ (119) | $ (7,803) | $ (5) |
Ending Balance, shares at Dec. 31, 2016 | 935 | 935 |
Consolidated Statements of Sto8
Consolidated Statements of Stockholders' Equity (Deficit) (Parenthetical) | Dec. 26, 2015 |
6.00% Convertible Senior Notes Due 2015 | |
Interest rate, stated percentage | 6.00% |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Cash flows from operating activities: | |||
Net loss | $ (497) | $ (660) | $ (403) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Net gain on sale of equity interests in ATMP JV | (146) | 0 | 0 |
Equity in loss of ATMP JV | 2 | 0 | 0 |
Depreciation and amortization | 133 | 167 | 203 |
Provision for deferred income taxes | 11 | 0 | 0 |
Stock-based compensation expense | 86 | 63 | 81 |
Non-cash interest expense | 21 | 11 | 17 |
Goodwill impairment charge | 0 | 0 | 233 |
Restructuring and other special charges, net | 0 | 83 | 14 |
Net loss on debt redemption | 68 | 0 | 61 |
Fair value of warrant issued related to sixth amendment to the WSA | 240 | 0 | 0 |
Other | (8) | (3) | (13) |
Changes in operating assets and liabilities: | |||
Accounts receivable | 222 | 280 | 7 |
Inventories | (73) | (11) | 199 |
Prepayment and other - GLOBALFOUNDRIES | 1 | 84 | (113) |
Prepaid expenses and other assets | (166) | (111) | (7) |
Payable to ATMP JV | 128 | 0 | 0 |
Payable to GLOBALFOUNDRIES | 10 | 27 | (146) |
Accounts payables, accrued liabilities and other | 58 | (156) | (231) |
Net cash provided by (used in) operating activities | 90 | (226) | (98) |
Cash flows from investing activities: | |||
Net Proceeds from sale of equity interests in ATMP JV | 342 | 0 | 0 |
Purchases of available-for-sale securities | 0 | (227) | (790) |
Purchases of property, plant and equipment | (77) | (96) | (95) |
Proceeds from maturities of available-for-sale securities | 0 | 462 | 873 |
Proceeds from sale of property, plant and equipment | 0 | 8 | 0 |
Other | 2 | 0 | 0 |
Net cash provided by (used in) investing activities | 267 | 147 | (12) |
Cash flows from financing activities: | |||
Proceeds from (repayments of) borrowings, net | (230) | 100 | 75 |
Proceeds from issuance of senior notes, net of issuance costs | 782 | 0 | 1,080 |
Proceeds from issuance of common stock, net of issuance costs | 667 | 0 | 0 |
Proceeds from issuance of common stock under stock-based compensation equity plans | 20 | 5 | 4 |
Repayments of long-term debt and capital lease obligations | (1,113) | (44) | (1,115) |
Other | (4) | (2) | 2 |
Net cash provided by financing activities | 122 | 59 | 46 |
Net increase (decrease) in cash and cash equivalents | 479 | (20) | (64) |
Cash and cash equivalents at beginning of year | 785 | 805 | 869 |
Cash and cash equivalents at end of year | 1,264 | 785 | 805 |
Supplemental disclosures of cash flow information: | |||
Cash paid during the year for interest | 149 | 149 | 138 |
Cash paid during the year for income taxes | 20 | 3 | 7 |
Non-cash financing activity: | |||
Issuance of common stock to partially settle the 7.00% Notes | $ 8 | $ 0 | $ 0 |
Consolidated Statements of Ca10
Consolidated Statements of Cash Flows (Parenthetical) | Dec. 31, 2016 |
7.00% Senior Notes due 2024 | |
Interest rate, stated percentage | 7.00% |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations Advanced Micro Devices, Inc. is a global semiconductor company. References herein to AMD or the Company mean Advanced Micro Devices, Inc. and its consolidated subsidiaries. The Company primarily offers: (i) x86 microprocessors, as standalone devices or as incorporated into an accelerated processing unit (APU), chipsets, discrete graphics processing units (GPUs) and professional graphics; and (ii) server and embedded processors and semi-custom System-on-Chip (SoC) products and technology for game consoles. We also license portions of our intellectual property portfolio. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Fiscal Year . The Company uses a 52 or 53 week fiscal year ending on the last Saturday in December. Fiscal 2016 , 2015 and 2014 ended December 31, 2016 , December 26, 2015 and December 27, 2014 , respectively. Fiscal 2016, 2015 and 2014 consisted of 53, 52 and 52 weeks, respectively. Principles of Consolidation. The consolidated financial statements include the Company’s accounts and those of its wholly-owned subsidiaries. Upon consolidation, all significant inter-company accounts and transactions are eliminated. Use of Estimates. The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of commitments and contingencies at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results are likely to differ from those estimates, and such differences may be material to the financial statements. Areas where management uses subjective judgment include, but are not limited to, revenue allowances, inventory valuation, valuation and impairment of goodwill, valuation of investments in marketable securities, deferred income taxes and restructuring charges. Revenue Recognition. The Company recognizes revenue from products sold directly to customers, including original equipment manufacturers (OEMs), when persuasive evidence of an arrangement exists, the price is fixed or determinable, delivery has occurred and collectability is reasonably assured. Estimates of product returns, allowances and future price reductions, based on actual historical experience and other known or anticipated trends and factors, are recorded at the time revenue is recognized. The Company sells to distributors under terms allowing the majority of distributors certain rights of return and price protection on unsold merchandise held by them. The distributor agreements, which may be cancelled by either party upon specified notice, generally contain a provision for the return of those of the Company’s products that the Company has removed from its price book and that are not more than 12 months older than the manufacturing code date. In addition, some agreements with distributors may contain standard stock rotation provisions permitting limited levels of product returns. Therefore, the Company is unable to estimate the product returns and pricing when the product is sold to the distributors. Accordingly, the Company defers the gross margin resulting from the deferral of both revenue and related product costs from sales to distributors with agreements that have the aforementioned terms until the merchandise is resold by the distributors and reports such deferred amounts as “Deferred income on shipments to distributors” on its consolidated balance sheet. Products are sold to distributors at standard published prices that are contained in price books that are broadly provided to the Company’s various distributors. Distributors are then required to pay for these products within the Company’s standard contractual terms, which are typically net 60 days. The Company records allowances for price protection given to distributors and customer rebates in the period of distributor re-sale. The Company determines these allowances based on specific contractual terms with its distributors. Price reductions generally do not result in sales prices that are less than the Company’s product cost. Deferred income on shipments to distributors is revalued at the end of each period based on the change in inventory units at distributors, latest published prices and latest product costs. The Company records estimated reductions to revenue under distributor and customer incentive programs, including certain cooperative advertising and marketing promotions and volume based incentives and special pricing arrangements, at the time the related revenues are recognized. For transactions where the Company reimburses a customer for a portion of the customer’s cost to perform specific product advertising or marketing and promotional activities, such amounts are recorded as a reduction of revenue unless they qualify for expense recognition. Shipping and handling costs associated with product sales are included in cost of sales. Deferred revenue and related product costs were as follows: December 31, December 26, (In millions) Deferred revenue $ 124 $ 94 Deferred cost of sales (61 ) (41 ) Deferred income on shipments to distributors $ 63 $ 53 Inventories. Inventories are stated at standard cost adjusted to approximate the lower of actual cost (first-in, first-out method) or market. The Company adjusts inventory carrying value for estimated obsolescence equal to the difference between the cost of inventory and the estimated market value based upon assumptions about future demand and market conditions. The Company fully reserves for inventories and noncancelable purchase orders for inventory deemed obsolete. The Company performs periodic reviews of inventory items to identify excess inventories on hand by comparing on-hand balances to anticipated usage using recent historical activity as well as anticipated or forecasted demand. If estimates of customer demand diminish further or market conditions become less favorable than those projected by the Company, additional inventory adjustments may be required . Goodwill. Goodwill represents the excess of the purchase price over the fair value of net tangible and identifiable intangible assets acquired. In accordance with Accounting Standards Codification (ASC) 350, “Goodwill and Other Intangible Assets,” goodwill is not amortized, but rather is tested for impairment at least annually or more frequently if indicators of impairment present. The Company performs its annual goodwill impairment analysis as of the first day of the fourth quarter of each year and, if certain events or circumstances indicate that an impairment loss may have been incurred, on an interim basis. In assessing impairment on goodwill, the Company first analyzes qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. The qualitative factors the Company assesses include long-term prospects of its performance, share price trends and market capitalization, and Company-specific events. If the Company concludes it is more likely than not that the fair value of a reporting unit exceeds its carrying amount, the Company does not need to perform the two-step impairment test. If based on that assessment, the Company believes it is more likely than not that the fair value of the reporting unit is less than its carrying value, a two-step goodwill impairment test will be performed. The first step of the impairment test is to compare the fair value of each reporting unit to its carrying value. If step one indicates that impairment potentially exists, the second step is performed to measure the amount of impairment, if any. Goodwill impairment exists when the estimated fair value of goodwill is less than its carrying value. Commitments and Contingencies. From time to time the Company is a defendant or plaintiff in various legal actions that arise in the normal course of business. The Company is also a party to environmental matters, including local, regional, state and federal government clean-up activities at or near locations where the Company currently or has in the past conducted business. The Company is required to assess the likelihood of any adverse judgments or outcomes to these matters as well as potential ranges of reasonably possible losses. A determination of the amount of reserves required for these commitments and contingencies, if any, that would be charged to earnings, includes assessing the probability of adverse outcomes and estimating the amount of potential losses. The required reserves, if any, may change in the future due to new developments in each matter or changes in circumstances such as a change in settlement strategy. Changes in required reserves could increase or decrease the Company’s earnings in the period the changes are made (See Notes 16 and 17). Restructuring Charges. Restructuring charges are primarily comprised of severance costs, contract and program termination costs, asset impairments and costs of facility consolidation and closure. Restructuring charges are recorded upon approval of a formal management plan and are included in the operating results of the period in which such plan is approved and the expense becomes estimable. To estimate restructuring charges, management utilizes assumptions of the number of employees that would be involuntarily terminated and of future costs to operate and eventually vacate duplicate facilities. Severance and other employee separation costs are accrued when it is probable that benefits will be paid and the amount is reasonably estimable. The rates used in determining severance accruals are based on the Company’s policies and practices and negotiated settlements. Cash Equivalents. Cash equivalents consist of financial instruments that are readily convertible into cash and have original maturities of three months or less at the time of purchase. Accounts Receivable. The Company maintains an allowance for doubtful accounts based on its assessment of the collectability of amounts owned by customers. The allowance consists of known specific troubled accounts as well as an amount based on overall estimated potential uncollectible accounts receivable based on historical experience. Investments in Certain Debt and Equity Securities . The Company classifies its investments in debt and marketable equity securities at the date of acquisition as available-for-sale. Available-for-sale securities are reported at fair value with the related unrealized gains and losses included, net of tax, in accumulated other comprehensive loss, a component of stockholders’ equity. Realized gains and losses and declines in the value of available-for-sale securities determined to be other than temporary are included in other income (expense), net. The cost of securities sold is determined based on the specific identification method. The Company classifies investments in debt securities with maturities of more than three months at the time of purchase as marketable securities on its consolidated balance sheet. Classification of these securities as current is based on the Company’s intent and belief in its ability to sell these securities and use the proceeds from sale in operations within 12 months. Derivative Financial Instruments. The Company maintains a foreign currency hedging strategy which uses derivative financial instruments to mitigate the risks associated with changes in foreign currency exchange rates. This strategy takes into consideration all of the Company’s consolidated exposures. The Company does not use derivative financial instruments for trading or speculative purposes. In applying its strategy, the Company used foreign currency forward contracts to hedge certain forecasted expenses denominated in foreign currencies. The Company designated these contracts as cash flow hedges of forecasted expenses, to the extent eligible under the accounting rules, and evaluates hedge effectiveness prospectively and retrospectively. As such, the effective portion of the gain or loss on these contracts is reported as a component of accumulated other comprehensive loss and reclassified to earnings in the same line item as the associated forecasted transaction and in the same period during which the hedged transaction affects earnings. Any ineffective portion is immediately recorded in earnings. The Company also uses, from time to time, foreign currency forward contracts to economically hedge recognized foreign currency exposures on the balance sheets of various subsidiaries. The Company does not designate these forward contracts as hedging instruments. Accordingly, the gain or loss associated with these contracts is immediately recorded in earnings. Property, Plant and Equipment. Property, plant and equipment are stated at cost. Depreciation and amortization are provided on a straight-line basis over the estimated useful lives of the assets for financial reporting purposes. Estimated useful lives for financial reporting purposes are as follows: equipment, two to six years ; buildings and building improvements, up to 40 years ; and leasehold improvements, measured by the shorter of the remaining terms of the leases or the estimated useful economic lives of the improvements. Assets Held for Sale. Assets held for sale represents components that meet accounting requirements to be classified as held for sale and presented as single asset and liability amounts in the Company’s financial statements at lower of carrying value or fair value, less cost to sell. The determination of fair value involves significant judgments and assumptions. In determining the fair value less cost to sell, the Company considered factors including, among others, the nature of the sales transaction, the composition of assets and/or businesses in the disposal group, current sales prices for comparable assets and/or businesses and negotiations with third party purchaser(s). As of December 26, 2015, the Company’s assets and liabilities related to the assets held for sale amounted to $183 million and $79 million and were recorded in other current assets and other current liabilities, respectively. These assets held for sale were related to the divestiture of the Company's subsidiaries in Suzhou and Penang . See Note 4 “Equity Interest Purchase Agreement” below, for additional information. Product Warranties. 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 conditions for one year. Subject to certain exceptions, the Company also offers a three-year limited warranty to end users for those central processing unit (CPU) and AMD A-Series accelerated processing unit (APU) products purchased as individually packaged products commonly referred to as “processors in a box”, and for PC workstation products. The Company also offered extended limited warranties to certain customers of “tray” microprocessor products and/or workstation graphics products who have written agreements with the Company and target their computer systems at the commercial and/or embedded markets. The Company accrues warranty costs at the time of sale of warranted products. Foreign Currency Translation/Transactions. The functional currency of all of the Company’s foreign subsidiaries is the U.S. dollar. Assets and liabilities denominated in non-U.S. dollars have been remeasured into U.S. dollars at current exchange rates for monetary assets and liabilities and historical exchange rates for non-monetary assets and liabilities. Non-U.S. dollar denominated transactions have been remeasured at average exchange rates in effect during each period, except for those cost of sales and expense transactions related to non-monetary balance sheet amounts, which have been remeasured at historical exchange rates. The gains or losses from foreign currency remeasurement are included in earnings. Foreign Subsidies. The Company received investment grants in connection with the construction and operation of certain facilities in Asia. Generally, such grants are subject to forfeiture in declining amounts over the life of the agreement if the Company does not maintain certain levels of employment or meet other conditions specified in the relevant grant documents. Accordingly, amounts granted are initially recorded as a receivable until cash proceeds are received. In the period the grant receivable is recorded, a current and long-term liability is also recorded which is subsequently amortized as a reduction to cost of sales. The Company also received grants relating to certain research and development projects. These research and development funds are generally recorded as a reduction of research and development expenses when all conditions and requirements set forth in the underlying grant agreement are met. Marketing, Communications and Advertising Expenses. Marketing, communications and advertising expenses for 2016 , 2015 and 2014 were approximately $131 million , $154 million and $194 million , respectively. Cooperative advertising funding obligations under customer incentive programs are accrued and the costs are recorded upon agreement with customers and vendor partners. Cooperative advertising expenses are recorded as marketing, general and administrative expense to the extent the cash paid does not exceed the estimated fair value of the advertising benefit received. Any excess of cash paid over the estimated fair value of the advertising benefit received is recorded as a reduction of revenue. Net Loss Per Share. Basic net loss per share is computed based on the weighted-average number of shares outstanding and shares issuable upon exercise of the warrants issued by the Company to West Coast Hitech L.P. (WCH), in connection with the GLOBALFOUNDRIES, Inc. (GF) transaction in 2009. On March 7, 2014 , the Company issued 35 million shares of common stock pursuant to the cashless exercise in full by WCH of its warrant to purchase up to 35 million shares of the Company’s common stock at an exercise price of $0.01 per share. As a result, the warrant is no longer outstanding. The issuance of the common stock did not have any effect on basic and dilutive earnings per share amounts because the full 35 million shares of common stock issuable to WCH had already been included in the denominator for calculating basic and dilutive earnings per share for all periods presented. Diluted net 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 and potentially dilutive shares issuable upon conversion of the 2.125% Convertible Senior Notes due 2026 ( 2.125% Notes) and the exercise of the warrant under the warrant agreement (the Warrant Agreement) with WCH, a wholly-owned subsidiary of Mubadala Development Company PJSC (Mubadala). The following table sets forth the components of basic and diluted loss per share: 2016 2015 2014 (In millions, except per share amounts) Numerator—Net loss: Numerator for basic and diluted net loss per share $ (497 ) $ (660 ) $ (403 ) Denominator—Weighted-average shares: Denominator for basic and diluted net loss per share 835 783 768 Net loss per share: Basic $ (0.60 ) $ (0.84 ) $ (0.53 ) Diluted $ (0.60 ) $ (0.84 ) $ (0.53 ) Potential shares from outstanding stock options, restricted stock units, the 2.125% Notes and the warrants under the Warrant Agreement totaling 231 million for 2016 and potential shares from outstanding stock options and restricted stock units totaling approximately 52 million and 48 million for 2015 and 2014 , respectively, were not included in the net loss per share calculations as their inclusion would have been anti-dilutive. Accumulated Other Comprehensive Loss. Unrealized holding gains or losses on the Company’s available-for-sale securities and unrealized holding gains and losses on derivative financial instruments qualifying as cash flow hedges are included in other comprehensive loss. The table below summarizes the changes in accumulated other comprehensive loss by component for the years ended December 31, 2016 and December 26, 2015 : December 31, December 26, 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, net of tax effects — 1 1 (2 ) (22 ) (24 ) Reclassification adjustment for (gains) losses realized and included in net loss, net of tax effects — 2 2 — 21 21 Total other comprehensive income (loss) — 3 3 (2 ) (1 ) (3 ) Ending balance $ (1 ) $ (4 ) $ (5 ) $ (1 ) $ (7 ) $ (8 ) Stock-Based Compensation . The Company estimates stock-based compensation cost for stock options at the grant date based on the option’s fair-value as calculated by the lattice-binomial option-pricing model. For restricted stock units, including performance-based restricted stock units (PRSUs), fair value is based on the closing price of the Company’s common stock on the grant date. The Company estimates the grant-date fair value of restricted stock units that involve a market condition using a Monte Carlo simulation model. Compensation expense is recognized over the vesting period of the applicable award using the straight-line method, except for the compensation expense related to PRSUs, which are recognized ratably for each vesting tranche from the service inception date to the end of the requisite service period. The application of the lattice-binomial option-pricing model requires the use of extensive actual employee exercise behavior data and the use of a number of complex assumptions including expected volatility of the Company’s common stock, risk-free interest rate and expected dividends. Significant changes in any of these assumptions could materially affect the fair value of stock options granted in the future. Forfeiture rates are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates in order to derive the Company’s best estimate of awards ultimately expected to vest. Recently Adopted Accounting Standards Income Taxes . 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 all deferred tax assets and liabilities be classified as non-current on the consolidated balance sheet. The Company early adopted ASU 2015-17 in the first quarter of 2016 and elected prospective application. As a result of the adoption, the Company netted $31 million of deferred tax assets and deferred tax liabilities and reclassified $8 million of current deferred tax assets and $6 million of current deferred tax liabilities to non-current deferred tax assets and liabilities, respectively, on its condensed consolidated balance sheet as of March 26, 2016. 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 debt issuance costs related to a recognized liability in the balance sheet as a direct deduction from the carrying amount of that related liability rather than as an asset. Amortization of the costs will continue to be reported as interest expense. In August 2015, the FASB issued ASU 2015-15, which clarified that debt issuance costs related to line-of-credit arrangements could continue to be presented as an asset and be subsequently amortized over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the arrangement. The Company retrospectively adopted ASU 2015-03 and 2015-15 in the first quarter of 2016 and r eclassified debt issuance 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. 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. The Company adopted ASU 2014-15 in the fourth quarter of 2016. The Company did not identify any conditions that raised substantial doubt about its ability to continue as a going concern as of the date of issuance of its consolidated financial statements, and accordingly no further disclosures are required. Recently Issued Accounting Standards Inventory. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory (ASU 2015-11), which requires entities to measure inventory at the lower of cost or net realizable value. Current guidance requires inventory to be measured at the lower of cost or market, with market defined as replacement cost, net realizable value, or net realizable value less a normal profit margin. This ASU simplifies the subsequent measurement of inventory by replacing the lower of cost or market test with a lower of cost or net realizable value test. The Company will adopt this guidance in the first quarter of 2017 and does not expect an impact 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 and replaces most existing revenue recognition guidance in U.S. GAAP. Under the new standard, revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. In addition, the new standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The FASB has issued several amendments to the new standard, including clarification on accounting for licenses of intellectual property and identifying performance obligations. The new standard is effective for annual reporting periods beginning after December 15, 2017. The new standard permits companies to early adopt the new standard, but not before annual reporting periods beginning after December 15, 2016. The Company will not early adopt the new standard and therefore the new standard will be effective for the Company in the first quarter of its fiscal 2018. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or prospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application and providing additional disclosures comparing results to the previous rules in the year of adoption of the new standard (the modified retrospective method or the cumulative catchup method). The Company currently anticipates adopting the standard using the full retrospective method to restate each prior reporting period presented. The Company’s ability to adopt utilizing the full retrospective method is dependent upon system readiness and the completion of its analysis of information necessary to restate prior period financial statements. In 2016, the Company established a cross-functional team consisting of representatives across both of its business segments. While the Company is continuing to assess all potential impacts of the standard, it currently believes the most significant impact relates to accelerated revenue recognition for sales to its distributors. This is due to a change in revenue recognition from the point of resale by its distributors to their end customers, to the initial point of sales to the Company’s distributors. The Company currently expects other revenue streams to remain substantially unchanged. As part of the Company’s assessment and implementation plan, the Company is evaluating and implementing changes to its policies, procedures and controls. Financial Instruments. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01), which requires that most equity investments be measured at fair value, with subsequent changes in fair value recognized in net income. The ASU also impacts financial liabilities under the fair value option and the presentation and disclosure requirements for financial instruments. In addition, the FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. Entities will have to assess the realizability of such deferred tax assets in combination with the entities other deferred tax assets. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017 and for 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. In February 2016, the FASB issued ASU No. 2016-02, Leases (ASU 2016-02), which increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. 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, lessees must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. 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 not expecting any material impact from its adoption of ASU 2016-07 on its consolidated financial statements. Stock Compensation. In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718) Improvements to Employee Share-Based Payment Accounting (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 will adopt this guidance in the first quarter of 2017 and will elect to continue to estimate forfeitures expected to occur to determine the amount of compensation cost to be recognized in each period. In the first quarter of 2017 the Company will record a $95 million cumulative-effect adjustment increase in retained earnings and an offsetting increase in deferred tax assets for previously unrecognized excess tax benefits that existed as of December 31, 2016. Since substantially all of the Company’s U.S. and foreign deferred tax assets, net of deferred tax liabilities, are subject to a valuation allowance and the realization of these assets is not more likely than not to be achieved, the Company will record a $95 million valuation allowance against these deferred tax assets with an offsetting decrease in retained earnings. The Company will elect to report cash flows related to excess tax benefits on a prospective basis. The presentation requirement for cash flows related to employee taxes paid for withheld shares will not impact the statements of cash flows since such cash flows have historically been presented as a financing activity. Financial Instruments . In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments (ASU 2016-13). The standard changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. ASU 2016- |
GLOBALFOUNDRIES
GLOBALFOUNDRIES | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
GLOBALFOUNDRIES | GLOBALFOUNDRIES Formation and Accounting On March 2, 2009 , the Company consummated the transactions contemplated by the Master Transaction Agreement among the Company, Mubadala Technology Investments LLC, or Mubadala Tech (formerly, Advanced Technology Investment Company LLC) and WCH, pursuant to which the Company formed GLOBALFOUNDRIES Inc. (GF). In connection with the consummation of the transactions contemplated by the Master Transaction Agreement, the Company, Mubadala Tech and GF entered into a Wafer Supply Agreement (the WSA), a Funding Agreement (the Funding Agreement) and a Shareholders’ Agreement (the Shareholders’ Agreement) on March 2, 2009. On March 4, 2012, as partial consideration for certain rights received under a second amendment to the WSA, the Company transferred to GF all of the remaining capital stock of GF that the Company owned. In addition, as of March 4, 2012, the Funding Agreement was terminated, and the Company was no longer party to the Shareholders’ Agreement. As a result of these transactions, the Company no longer owned any GF capital stock as of March 4, 2012. GF continues to be a related party of the Company because Mubadala and Mubadala Tech are affiliated with WCH, the Company’s largest stockholder. WCH and Mubadala Tech are wholly-owned subsidiaries of Mubadala. Wafer Supply Agreement The WSA governs the terms by which the Company purchases products manufactured by GF. Pursuant to the WSA, the Company is required to purchase all of its microprocessor and APU product requirements and a certain portion of its GPU product requirements from GF with limited exceptions. If the Company acquires a third party business that manufactures microprocessor and APU products, the Company will have up to two years to transition the manufacture of such microprocessor and APU products to GF. The WSA terminates no later than March 2, 2024 . GF has agreed to use commercially reasonable efforts to assist the Company to transition the supply of products to another provider and to continue to fulfill purchase orders for up to two years following the termination or expiration of the WSA. During the transition period, pricing for microprocessor and APU products will remain as set forth in the WSA, but the Company’s purchase commitments to GF will no longer apply. Sixth Amendment to Wafer Supply Agreement . On August 30, 2016 , the Company entered into a sixth amendment (the Sixth Amendment) to the WSA. The Sixth Amendment modifies certain terms of the WSA applicable to wafers for the Company’s microprocessor, graphics processor and semi-custom products for a five-year period from January 1, 2016 to December 31, 2020. The Company and GF agreed to establish a comprehensive framework for technology collaboration for the 7nm technology node. The Sixth Amendment also provides the Company a limited waiver with rights to contract with another wafer foundry with respect to certain products in the 14nm and 7nm technology nodes and gives the Company greater flexibility in sourcing foundry services across its product portfolio. In consideration for these rights, the Company agreed to pay GF $100 million in installments starting in the fourth fiscal quarter of 2016 through the third fiscal quarter of 2017. During the fourth quarter of fiscal 2016, the Company paid GF $25 million . Starting in 2017 and continuing through 2020, the Company also agreed to make quarterly payments to GF based on the volume of certain wafers purchased from another wafer foundry. Further, for each calendar year during the term of the Sixth Amendment, the Company and GF agreed to annual wafer purchase targets that increase from 2016 through 2020. If the Company does not meet the annual wafer purchase target for any calendar year, the Company will be required to pay to GF a portion of the difference between the Company’s actual wafer purchases and the wafer purchase target for that year. The annual targets were established based on the Company’s current business and market expectations and take into account the limited waiver it has received for certain products. The Company and GF also agreed on fixed pricing for wafers purchased during 2016 and established a framework to agree on annual wafer pricing for the years 2017 to 2020. The Company’s total purchases from GF related to wafer manufacturing and research and development activities were approximately $0.7 billion for 2016 , $0.9 billion for 2015 and $1 billion for 2014 . Warrant Agreement . Also on August 30, 2016, in consideration of the limited waiver and rights under the Sixth Amendment, the Company entered into a warrant agreement (the Warrant Agreement) with WCH, a wholly-owned subsidiary of Mubadala. Under the Warrant Agreement, WCH and its permitted assigns are entitled to purchase 75 million shares of the Company’s common stock (the Warrant Shares) at a purchase price of $5.98 per share. The warrant under the Warrant Agreement is exercisable in whole or in part until February 29, 2020, provided that the maximum number of Warrant Shares that may be exercised prior to the one-year anniversary of the Warrant Agreement shall not exceed 50 million . Notwithstanding the foregoing, the Warrant Agreement will only be exercisable to the extent that Mubadala does not beneficially own, either directly through any other entities directly and indirectly owned by Mubadala or its subsidiaries, an aggregate of more than 19.99% of the Company’s outstanding capital stock after any such exercise. During 2016 , the Company recorded a charge of $340 million , consisting of the $100 million payment under the Sixth Amendment and the $240 million value of the warrant under the Warrant Agreement issued in consideration of the Sixth Amendment. The warrant, which was recorded as additional paid-in capital, was valued using the Black-Scholes Model, which considers the assumptions of 47.1% implied volatility and 0.99% risk-free rate based on the 3.5 -year warrant term, the Company's stock price of $7.49 per share on August 30, 2016 and the $5.98 strike price. |
Equity Interest Purchase Agreem
Equity Interest Purchase Agreement | 12 Months Ended |
Dec. 31, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Interest Purchase Agreement and Equity 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 Suzhou TF-AMD Semiconductor Co., Ltd. (formerly, AMD Technologies (China) Co., Ltd.), and TF AMD Microelectronics (Penang) Sdn. Bhd. (formerly, Advanced Micro Devices Export Sdn. Bhd.), to affiliates of Tongfu Microelectronics Co., Ltd (formerly, Nantong Fujitsu Microelectronics Co., Ltd.) (TFME), a Chinese joint stock company, to form two joint ventures (collectively, the ATMP JV). As a result of the sale, TFME’s affiliates own 85% of the equity interests in the 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 $342 million , including purchase price adjustments, in net cash proceeds for selling 85% of the equity interest in each of Suzhou TF-AMD Semiconductor Co., Ltd. and TF AMD Microelectronics (Penang) Sdn. Bhd. These proceeds, net of certain transaction costs, were included in investing activities on the Company's consolidated statements of cash flows for the year ended December 31, 2016 . The Company recognized a net pre-tax gain on the sale of its 85% equity interest in ATMP JV of $146 million for the year ended December 31, 2016 , which was recognized in Other income (expense), net on the Company's consolidated statements of operations. The net 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 $11 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 December 31, 2016 , the carrying value of the Company's investment in the ATMP JV was $59 million . Following the deconsolidation, the ATMP JV is a related party of the Company. The ATMP JV provides assembly, test, mark and packaging (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 during the year ended December 31, 2016 amounted to approximately $265 million . The Company’s payable to the ATMP JV, as of December 31, 2016 , was $128 million . During the year ended December 31, 2016 , the Company recorded a $10 million loss in Equity in income (loss) of ATMP JV on its consolidated statements of operations, which included certain expenses incurred by the Company on behalf of the ATMP JV. 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 THATIC JV). 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 THATIC JV’s operations. The Company has no obligations to fund the THATIC JV. The THATIC JV’s 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 THATIC JV 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 THATIC JV’s products to be developed on the basis of such Licensed IP. The Company will also provide certain engineering and technical support to the THATIC JV 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, as the Company does not have unilateral power to direct selling and marketing activities, manufacturing and product development activities related to the THATIC JV's products. Accordingly the Company will not consolidate either of these entities and therefore accounts for its investments in the THATIC JV under the equity method of accounting. THATIC JV is a related party of the Company. 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. 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 year ended December 31, 2016 , the Company recognized $88 million licensing gain associated with the THATIC JV as part of operating income. The Company’s total exposure to losses through its investment in the THATIC JV is limited to the Company’s investments in the THATIC JV, which was zero as of December 31, 2016 . The Company’s share in the net losses of the THATIC JV for the year ended December 31, 2016 was not material and is not recorded in the Company’s consolidated statement of operations since the Company is not obligated to fund the THATIC JV's losses in excess of the Company’s investment in the THATIC JV. As of December 31, 2016 , the total assets and liabilities of the THATIC JV were not material. |
Equity Joint Venture - Intellec
Equity Joint Venture - Intellectual Property Licensing Agreement | 12 Months Ended |
Dec. 31, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Interest Purchase Agreement and Equity 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 Suzhou TF-AMD Semiconductor Co., Ltd. (formerly, AMD Technologies (China) Co., Ltd.), and TF AMD Microelectronics (Penang) Sdn. Bhd. (formerly, Advanced Micro Devices Export Sdn. Bhd.), to affiliates of Tongfu Microelectronics Co., Ltd (formerly, Nantong Fujitsu Microelectronics Co., Ltd.) (TFME), a Chinese joint stock company, to form two joint ventures (collectively, the ATMP JV). As a result of the sale, TFME’s affiliates own 85% of the equity interests in the 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 $342 million , including purchase price adjustments, in net cash proceeds for selling 85% of the equity interest in each of Suzhou TF-AMD Semiconductor Co., Ltd. and TF AMD Microelectronics (Penang) Sdn. Bhd. These proceeds, net of certain transaction costs, were included in investing activities on the Company's consolidated statements of cash flows for the year ended December 31, 2016 . The Company recognized a net pre-tax gain on the sale of its 85% equity interest in ATMP JV of $146 million for the year ended December 31, 2016 , which was recognized in Other income (expense), net on the Company's consolidated statements of operations. The net 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 $11 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 December 31, 2016 , the carrying value of the Company's investment in the ATMP JV was $59 million . Following the deconsolidation, the ATMP JV is a related party of the Company. The ATMP JV provides assembly, test, mark and packaging (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 during the year ended December 31, 2016 amounted to approximately $265 million . The Company’s payable to the ATMP JV, as of December 31, 2016 , was $128 million . During the year ended December 31, 2016 , the Company recorded a $10 million loss in Equity in income (loss) of ATMP JV on its consolidated statements of operations, which included certain expenses incurred by the Company on behalf of the ATMP JV. 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 THATIC JV). 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 THATIC JV’s operations. The Company has no obligations to fund the THATIC JV. The THATIC JV’s 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 THATIC JV 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 THATIC JV’s products to be developed on the basis of such Licensed IP. The Company will also provide certain engineering and technical support to the THATIC JV 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, as the Company does not have unilateral power to direct selling and marketing activities, manufacturing and product development activities related to the THATIC JV's products. Accordingly the Company will not consolidate either of these entities and therefore accounts for its investments in the THATIC JV under the equity method of accounting. THATIC JV is a related party of the Company. 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. 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 year ended December 31, 2016 , the Company recognized $88 million licensing gain associated with the THATIC JV as part of operating income. The Company’s total exposure to losses through its investment in the THATIC JV is limited to the Company’s investments in the THATIC JV, which was zero as of December 31, 2016 . The Company’s share in the net losses of the THATIC JV for the year ended December 31, 2016 was not material and is not recorded in the Company’s consolidated statement of operations since the Company is not obligated to fund the THATIC JV's losses in excess of the Company’s investment in the THATIC JV. As of December 31, 2016 , the total assets and liabilities of the THATIC JV were not material. |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 12 Months Ended |
Dec. 31, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information Inventories December 31, December 26, (In millions) Raw materials $ 11 $ 16 Work in process 564 482 Finished goods 176 180 Total inventories, net $ 751 $ 678 Other current assets December 31, December 26, (In millions) Assets held-for-sale $ — $ 183 Other current assets 109 65 Total other current assets $ 109 $ 248 Property, plant and equipment December 31, December 26, (In millions) Leasehold improvements $ 148 $ 146 Equipment 714 821 Construction in progress 19 17 Property, plant and equipment, gross 881 984 Accumulated depreciation and amortization (717 ) (796 ) Total property, plant and equipment, net $ 164 $ 188 Depreciation expense for 2016 , 2015 and 2014 was $71 million , $94 million and $115 million , respectively. Other assets December 31, December 26, (In millions) Software and technology licenses, net $ 232 $ 189 Other 47 109 Total other assets $ 279 $ 298 Accrued liabilities December 31, December 26, (In millions) Accrued compensation and benefits $ 116 $ 95 Marketing programs and advertising expenses 102 109 Software technology and licenses payable 24 50 Other accrued and current liabilities 149 218 Total accrued liabilities $ 391 $ 472 Other current liabilities December 31, December 26, (In millions) Liabilities related to assets held-for-sale $ — $ 79 Other current liabilities 69 45 Total other current liabilities $ 69 $ 124 |
Goodwill and Acquired Intangibl
Goodwill and Acquired Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Acquired Intangible Assets | Goodwill and Acquired Intangible Assets Goodwill The carrying amounts of goodwill as of December 31, 2016 and December 26, 2015 were as follows: Computing and Graphics Enterprise, Embedded and Semi-Custom All Other Total (In millions) Initial goodwill due to ATI acquisition $ 1,194 $ 255 $ 745 $ 2,194 Initial goodwill due to SeaMicro acquisition 165 65 — 230 1,359 320 745 2,424 Accumulated impairment losses (1,359 ) — (745 ) (2,104 ) Balance as of December 27, 2014 — 320 — 320 Assets held-for-sale (sold to ATMP JV during 2016) (42 ) (42 ) Balance as of December 26, 2015 — 278 — 278 Adjustment to assets sold to ATMP JV — 11 — 11 Balance as of December 31, 2016 — 289 — 289 Goodwill, gross 1,359 289 745 2,424 Accumulated impairment losses $ (1,359 ) $ — $ (745 ) $ (2,104 ) As a result of the decision to form the JVs with TFME, the balance sheet as of December 26, 2015 reflects held-for-sale accounting of the ATMP assets and liabilities which requires reclassification of such financial amounts to current assets and current liabilities. Asset balances reclassified into other current assets included goodwill of $42 million . During 2016, the formation of ATMP JV was completed and the actual goodwill assigned to ATMP JV was approximately $31 million . During the fourth quarter of 2014, the Company conducted its annual impairment test of goodwill. In step one of the impairment test, the Company compared the fair value of each of the reporting units to its carrying value. The Company determined that the carrying value of the Computing and Graphics reporting unit exceeded its fair value, indicating potential goodwill impairment existed based on a combination of factors such as a decline in stock price. Therefore, the Company performed the second step of the impairment test, in which the fair value of the reporting unit is allocated to all of the assets and liabilities of the reporting unit on a fair value basis, including any unrecognized intangible assets, with any excess representing the implied fair value of goodwill. The fair value was determined using an income approach, which estimates the present value of future cash flows based on management’s forecast of revenue growth rates and operating margins. Based on this analysis, the implied fair value of the goodwill of the Computing and Graphics reporting unit was zero. The Company concluded that the carrying amount of goodwill assigned to the Computing and Graphics segment exceeded the implied fair values and recorded an impairment charge of $233 million , which is included in “Goodwill impairment charge” on the Company’s consolidated statement of operations. The Company determined that the estimated fair value exceeded the carrying value of the remaining two reporting units, indicating that there was no goodwill impairment with respect to these reporting units. In connection with completing the goodwill impairment analysis, the Company reviewed its long-lived tangible and intangible assets within the Computing and Graphics reporting unit under ASC 360, “Accounting for the Impairment or Disposal of Long-Lived Assets.” The Company determined that the forecasted undiscounted cash flows related to these assets or asset groups were in excess of their carrying values, and therefore these assets were not impaired. In the fourth quarters of 2016 and 2015 , the Company conducted its annual impairment tests of goodwill. Based on the results of the Company’s analysis of goodwill, each reporting unit’s fair value exceeded its carrying value, indicating that there was no goodwill impairment in 2016 and 2015 . Acquisition-related intangible assets As a part of the Company’s strategy to simplify and sharpen its investment focus, the Company decided to exit 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 consolidated statements of operations during 2015. This charge consisted of 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. There were no unamortized balances of acquisition-related intangible assets as of December 31, 2016 and December 26, 2015 . The following table summarizes amortization expense associated with acquisition-related intangible assets: 2016 2015 2014 (In millions) Developed technology $ — $ 3 $ 13 Customer relationships — — 1 Total $ — $ 3 $ 14 |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 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 December 31, 2016 and December 26, 2015 are summarized below: December 31, December 26, (In millions) Cash and cash equivalents Cash $ 67 $ 409 Level 1 (1) (2) Government money market funds 50 — Total level 1 50 — Level 2 (1) (3) Commercial paper 1,147 376 Total level 2 1,147 376 Total $ 1,264 $ 785 (1) The Company did not have any transfers between Level 1 and Level 2 of the fair value hierarchy during 2016 and 2015. (2) The Company's Level 1 assets are valued using quoted prices for identical instruments in active markets. (3) The Company’s Level 2 assets 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. In addition to those amounts presented above, as of December 31, 2016 and December 26, 2015 , the Company had approximately $2 million and $1 million , respectively, of 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 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, at December 31, 2016 and December 26, 2015 , the Company had approximately $15 million of investments in mutual funds held in a Rabbi trust established for the Company’s deferred compensation plan, which were also included in Other assets on the Company’s 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: December 31, 2016 December 26, 2015 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value (In millions) Short-term debt $ — $ — $ 230 $ 230 Long-term debt, net (1) $ 1,434 $ 2,313 $ 2,000 $ 1,372 (1) Carrying amounts of long-term debt are net of unamortized debt issuance costs of $25 million as of December 31, 2016 and December 26, 2015 , based on the adoption of ASU 2015-03, and net of $308 million unamortized debt discount associated with the 2.125% Notes as of December 31, 2016 . The Company’s short-term and long-term debt, net 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 loss, the amount of gain (loss) reclassified from accumulated other comprehensive 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 consolidated statements of operations: 2016 2015 (In millions) Foreign Currency Forward Contracts - gains (losses) Contracts designated as cash flow hedging instruments Other comprehensive income (loss) $ 4 $ (1 ) Cost of sales — (4 ) Research and development (1 ) (10 ) Marketing, general and administrative — (7 ) Contracts not designated as hedging instruments Other income (expense), net $ 3 $ (3 ) 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 consolidated balance sheets as follows: December 31, December 26, (In millions) Foreign Currency Forward Contracts - gains (losses) Contracts designated as cash flow hedging instruments $ (2 ) $ (6 ) 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 December 31, 2016 and December 26, 2015 , the notional values of the Company’s outstanding foreign currency forward contracts were $138 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 In the third quarter of 2014, the Company entered into fixed-to-floating interest rate swaps on a notional amount of $250 million to hedge a portion of the Company’s 6.75% Senior Notes due 2019 ( 6.75% Notes). The purpose of these swaps was to manage a portion of the Company’s exposure to interest rate risk by converting fixed rate interest payments to floating rate interest payments. The swaps effectively converted a portion of the fixed interest payments payable on the 6.75% Notes into variable interest payments based on LIBOR. The interest rate swaps were designated as a fair value hedge. Because the specific terms and notional amount of the swaps were intended to match the portion of the 6.75% Notes being hedged, it was assumed to be a highly effective hedge. Accordingly, changes in the fair value of the interest rate swaps were exactly offset by changes in the fair value of the 6.75% Notes. All changes in fair value of the swaps were recorded on the Company’s consolidated balance sheets with no net impact to the Company’s consolidated statements of operations. During 2016 , the Company terminated the above fair value hedges. In connection with the repurchase of a portion of the principal amount of the 6.75% Notes during the third quarter of 2016, the Company canceled one of its interest rate swap contracts and recorded a gain of approximately $2 million in Other income (expense), net on the Company's consolidated statement of operations. Additionally, during the fourth quarter of 2016, the Company canceled its remaining interest rate swap contract on the remaining portion of the outstanding 6.75% Notes. For this cancellation, the Company recorded a deferred gain, which is recognized as interest income over the remaining life of the 6.75% Notes. The total amount of interest income recognized from the deferred gain during 2016 was immaterial. As of December 31, 2016 , the balance of the deferred gain included in Long-term debt, net on the Company's consolidated balance sheet was approximately $1 million . The Company’s fair value hedge derivative contracts were classified within Level 2 because the valuation inputs were 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 consolidated balance sheets as follows: December 31, December 26, (In millions) Interest Rate Swap Contracts - gains (losses) Contracts designated as fair value hedging instruments $ — $ 7 |
Concentrations of Credit and Op
Concentrations of Credit and Operation Risk | 12 Months Ended |
Dec. 31, 2016 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Credit and Operation Risk | Concentrations of Credit and Operation Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of investments in debt securities, trade receivables and derivative financial instruments used in hedging activities. The Company places its investments with high credit quality financial institutions and, by policy, limits the amount of credit exposure with any one financial institution. The Company invests in time deposits and certificates of deposit from banks having combined capital, surplus and undistributed profits of not less than $200 million . At the time an investment is made, investments in commercial paper of industrial firms and financial institutions are rated A1, P1 or better. The Company invests in tax-exempt securities, including municipal notes and bonds that are rated A, A2 or better and repurchase agreements, each of which have securities of the type and quality listed above as collateral. The Company believes that concentrations of credit risk with respect to trade receivables are limited because a large number of geographically diverse customers make up the Company’s customer base, thus diluting the trade credit risk. Accounts receivable from the Company’s top three customers accounted for approximately 12% , 11% and 10% of the total consolidated accounts receivable balance as of December 31, 2016 and 26% , 17% and 11% of the total consolidated accounts receivable balance as of December 26, 2015 . However, the Company does not believe the receivable balance from these customers represents a significant credit risk based on past collection experience, and review of their current credit quality. The Company manages its exposure to customer credit risk through credit limits, credit lines, ongoing monitoring procedures and credit approvals. Furthermore, the Company performs in-depth credit evaluations of all new customers and, at intervals, for existing customers. From this, the Company may require letters of credit, bank or corporate guarantees or advance payments, if deemed necessary. The Company’s existing derivative financial instruments are with large international financial institutions of investment grade credit rating. The Company does not believe that there is significant risk of nonperformance by these counterparties because the Company monitors their credit rating on an ongoing basis. By using derivative instruments, the Company is subject to credit and market risk. If a counterparty fails to fulfill its performance obligations under a derivative contract, the Company’s credit risk will equal the fair value of the derivative instrument. Generally, when the fair value of a derivative contract is positive, the counterparty owes the Company, thus creating a receivable risk for the Company. Based upon certain factors, including a review of the credit default swap rates for the Company’s counterparties, the Company determined its counterparty credit risk to be immaterial. At December 31, 2016 , the Company’s obligations under the contracts exceeded the counterparties’ obligations by $2 million . The Company is dependent on certain equipment and materials from a limited number of suppliers and relies on a limited number of foreign companies to supply the majority of certain types of integrated circuit packages for its internal back-end manufacturing operations. Similarly, certain non-proprietary materials or components such as memory, PCBs, substrates and capacitors used in the manufacture of the Company’s graphics products are currently available from only a limited number of sources. Interruption of supply or increased demand in the industry could cause shortages and price increases in various essential materials. If the Company or its third-party manufacturing suppliers are unable to procure certain of these materials, or its foundries are unable to procure materials for manufacturing its products, its business would be materially adversely affected. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes consists of: 2016 2015 2014 (In millions) Current: U.S. Federal $ (2 ) $ (1 ) $ (1 ) U.S. State and Local — — — Foreign National and Local 21 16 6 Total 19 15 5 Deferred: U.S. Federal (1 ) — — Foreign National and Local 21 (1 ) — Total 20 (1 ) — Provision for income taxes $ 39 $ 14 $ 5 Loss before income taxes consists of the following: 2016 2015 2014 (In millions) U.S. $ (604 ) $ (1,100 ) $ (621 ) Foreign 146 454 223 Total pre-tax loss including ATMP JV equity loss $ (458 ) $ (646 ) $ (398 ) Deferred income taxes reflect the net tax effects of tax carryovers and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the balances for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2016 and December 26, 2015 are as follows: December 31, December 26, (In millions) Deferred tax assets: Net operating loss carryovers $ 2,480 $ 2,342 Deferred distributor income 26 20 Inventory valuation 26 39 Accrued expenses not currently deductible 65 74 Acquired intangibles 213 257 Tax deductible goodwill 146 192 Federal and state tax credit carryovers 427 400 Foreign capitalized research and development costs — 60 Foreign research and development ITC credits 341 231 Discount of convertible notes 2 1 Other 83 119 Total deferred tax assets 3,809 3,735 Less: valuation allowance (3,633 ) (3,669 ) Total deferred tax assets, net of valuation allowance 176 66 Deferred tax liabilities: Undistributed foreign earnings (158 ) (33 ) Other (18 ) (23 ) Total deferred tax liabilities (176 ) (56 ) Net deferred tax assets $ — $ 10 The breakdown between current and non-current deferred tax assets and deferred tax liabilities as of December 31, 2016 and December 26, 2015 is as follows: December 31, December 26, (In millions) Current deferred tax assets $ — $ 8 Non-current deferred tax assets 11 48 Current deferred tax liabilities — (46 ) Non-current deferred tax liabilities $ (11 ) $ — Net deferred tax assets $ — $ 10 Current deferred tax assets and current deferred tax liabilities are included in captions Other current assets and Accrued liabilities, respectively, on the consolidated balance sheets. Non-current deferred tax assets are included in the caption “Other assets” on the consolidated balance sheets. As of December 31, 2016 , substantially all of the Company’s U.S. and foreign deferred tax assets, net of deferred tax liabilities, continued to be subject to a valuation allowance. The realization of these assets is dependent on substantial future taxable income which, at December 31, 2016 , in management’s estimate, is not more likely than not to be achieved. In 2016 , the net valuation allowance decreased by $36 million primarily for decreases in deferred tax assets related to foreign capitalized research costs, acquired intangibles and goodwill. In 2015 , the net valuation allowance increased by $174 million primarily for increases in deferred tax assets related to the net operating losses generated from pre-tax book losses in the U.S. In 2014 , the net valuation allowance increased by $120 million primarily for increases in deferred tax assets related to net operating losses generated from pre-tax book losses in the U.S. As of December 31, 2016 and December 26, 2015 , the Company had $95 million and $118 million , respectively, of deferred tax assets subject to a valuation allowance that related to excess stock option deductions, which are not presented in the deferred tax asset balances. The following is a summary of the various tax attribute carryforwards the Company had as of December 31, 2016 . The amounts presented below include amounts related to excess stock option deductions, as discussed above. Carryforward Federal State / Provincial Expiration (In millions) U.S.-net operating loss carryovers $ 6,973 $ 348 2017 to 2036 U.S.-credit carryovers $ 398 $ 209 2017 to 2036 Canada-net operating loss carryovers $ 13 $ 13 2027 to 2028 Canada-credit carryovers $ 331 $ 39 2021 to 2036 Barbados-net operating loss carryovers $ 29 N/A 2017 Other foreign net operating loss carryovers $ 36 N/A various Utilization of $10 million of the Company’s U.S. federal net operating loss carryforwards are subject to annual limitations as a result of the ATI Technologies ULC (ATI) acquisition. The table below displays reconciliation between statutory federal income taxes and the total provision (benefit) for income taxes. 2016 2015 2014 (In millions) Statutory federal income tax benefit at 35% rate $ (160 ) $ (226 ) $ (139 ) State taxes, net of federal benefit 1 1 1 Foreign (income) expense at other than U.S. rates (1 ) 9 1 U.S. valuation allowance generated 201 232 144 Credit monetization (2 ) (2 ) (2 ) Provision for income taxes $ 39 $ 14 $ 5 The Company has made no provision for U.S. income taxes on approximately $37 million of cumulative undistributed earnings of certain foreign subsidiaries through December 31, 2016 because it is the Company’s intention to indefinitely reinvest such earnings (2015: approximately $307 million ). If such earnings were distributed, the Company would incur additional income taxes of approximately $13 million (after an adjustment for foreign tax credits). These additional income taxes may not result in income tax expense or a cash payment to the Internal Revenue Service, but may result in the utilization of deferred tax assets that are currently subject to a valuation allowance. The year-on-year reduction in cumulative undistributed earnings for which no provision for U.S. income taxes has been provided is primarily due to a combination of dividend distributions, other US federal income tax return inclusions, and changes in circumstances in certain subsidiaries such that their undistributed earnings are no longer considered indefinitely reinvested in full or in part. Significant movements in previously undistributed earnings of foreign subsidiaries are discussed below. The Company recognized the U.S. income tax effect of undistributed earnings within certain subsidiaries in China and Malaysia of $83 million through December 31, 2016. In addition, dividends and other U.S. federal income tax return inclusions of $198 million were recognized in U.S. taxable income through December 31, 2016 . The tax effect of the total recognition of $281 million distributed and undistributed by these subsidiaries is the utilization of deferred tax assets and an equivalent reduction in valuation allowances over those assets. These movements arise because the Company closed the transaction to sell 85% of the ownership interest in the subsidiaries operating factories in Suzhou and Penang. The Company recognized the U.S. income tax effect of undistributed earnings within a subsidiary in Bermuda and its subsidiaries of $127 million through December 31, 2016 because of a simplification plan which resulted in the relocation of certain activities between entities within the Company group. On completion these initiatives will allow a merger of two operating subsidiaries and reduce their role within the group’s operating activities. This causes the Company to modify its judgment that the associated undistributed earnings of these subsidiaries remain indefinitely reinvested. The tax effect of this recognition is the utilization of deferred tax assets and an equivalent reduction in valuation allowances over those assets. The Company partially recognized undistributed earnings within certain subsidiaries in China of $56 million through December 26, 2015 because the announcement in October 2015 of an agreement to sell 85% of the ownership interest in the subsidiary operating a factory in Suzhou caused the Company to modify its judgment that associated undistributed earnings of that subsidiary’s holding company in China will remain indefinitely reinvested. A future distribution of these earnings will give rise to an associated future withholding tax of $6 million . This is recognized as an income tax expense within the 2015 income tax provision. The same event results in the Chinese holding company recognizing the future benefit of tax losses available to offset taxable gains when the deal closes. The future benefit of those losses is $7 million and is a reduction in the 2015 income tax provision. The net effect of this event in the 2015 income tax provision is a reduction of $1 million . The Company’s operations in Malaysia currently operate under a tax holiday, which will expire in 2018. This tax holiday may be extended if specific conditions are met. The net impact of the tax holiday did no t decrease the Company’s net loss in 2016 because the Company’s operations in Malaysia operated at a net loss. The net impact of tax holidays did no t decrease the Company’s net loss in 2015 because the Company’s operations in Malaysia operated at a loss. The net impact of tax holidays decreased the Company’s net loss by $2 million in 2014 , less than $.01 per share, diluted. A reconciliation of the gross unrecognized tax benefits is as follows: 2016 2015 2014 (In millions) Balance at beginning of year $ 38 $ 28 $ 52 Increases for tax positions taken in prior years 3 11 1 Decreases for tax positions taken in prior years — (1 ) — Increases for tax positions taken in the current year 2 2 2 Decreases for settlements with taxing authorities — (2 ) (27 ) Decreases for lapsing of the statute of limitations (1 ) — — Balance at end of year $ 42 $ 38 $ 28 The amount of unrecognized tax benefits that would impact the effective tax rate was $4 million , $4 million and $3 million as of December 31, 2016 , December 26, 2015 and December 27, 2014 , respectively. The Company had no or immaterial amounts of accrued interest and no accrued penalties related to unrecognized tax benefits as of December 31, 2016 , December 26, 2015 and December 27, 2014 . The Company recognizes the accrued interest and penalties to unrecognized tax benefits as interest expense and income tax expense, respectively. During the 12 months beginning January 1, 2017, the Company expects to reduce its unrecognized tax benefits by $1 million primarily as a result of the lapse of statue with certain tax authorities. The Company does not believe it is reasonably possible that other unrecognized tax benefits will materially change in the next 12 months. However, the resolutions and/or closure of open audits are highly uncertain. As of December 27, 2014, the Canada Revenue Agency, or CRA, had completed its audit of ATI for the years 2005 through 2010 and issued its final Notice of Assessment, which the Company has reviewed and agreed to. As of December 26, 2015, the Italian tax authorities had concluded their audit of the Company’s subsidiaries’ activities in Italy for the years 2003 through 2013. The Company entered into a settlement for $11 million in taxes and penalties and $2 million in interest. The Company and its subsidiaries have several foreign, foreign provincial, and U.S. state audits in process at any one point in time. The Company has provided for uncertain tax positions that require a liability under the adopted method to account for uncertainty in income taxes. The Company has not recognized any current or long-term deferred tax assets under a valuation allowance as a result of the application of uncertainty in income taxes in ASC 740 for unrecognized tax benefits as of December 31, 2016 . |
Debt and Other Obligations
Debt and Other Obligations | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt and Other Obligations | Debt and Other Obligations Total Debt The Company’s total debt as of December 31, 2016 and December 26, 2015 consisted of: December 31, December 26, (In millions) 6.75% Notes $ 196 $ 600 6.75% Notes, interest rate swap — 7 7.75% Notes — 450 7.50% Notes 350 475 7.00% Notes 416 500 2.125% Notes 805 — Secured Revolving Line of Credit — 230 Other 1 — Total debt (principal amount) 1,768 2,262 Unamortized debt discount associated with 2.125% Notes (308 ) — Unamortized debt issuance costs (25 ) (25 ) Total debt (net) 1,435 2,237 Less: current portion — 230 Total debt, less current portion $ 1,435 $ 2,007 2.125% Convertible Senior Notes Due 2026 On September 14, 2016, the Company issued $700 million in aggregate principal amount of 2.125% Convertible Senior Notes due 2026 ( 2.125% Notes). The Company also granted an option to the underwriters to purchase an additional $105 million aggregate principal amount of the 2.125% Notes. On September 28, 2016, this option was exercised in full and the Company issued an additional $105 million aggregate principal amount of the 2.125% Notes. The 2.125% Notes are general unsecured senior obligations of the Company and will mature on September 1, 2026, unless earlier repurchased or converted. Interest is payable in arrears on March 1 and September 1 of each year beginning on March 1, 2017. The 2.125% Notes are governed by the terms of a base indenture and a supplemental indenture (together the 2.125% Indentures) dated September 14, 2016 between the Company and Wells Fargo Bank, N.A., as trustee. Holders may convert their notes at their option at any time prior to the close of business on the business day immediately preceding June 1, 2026 only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on September 30, 2016 (and only during such calendar quarter), if the last reported sale price of the Company's common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business day period after any ten consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company's common stock and the conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events. On or after June 1, 2026 until the close of business on the business day immediately preceding the maturity date, holders may convert their notes at any time, regardless of the foregoing circumstances. Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of the Company's common stock or a combination of cash and shares of the Company's common stock, at the Company's election. The Company may not redeem the notes prior to the maturity date, and no sinking fund is provided for the notes. The conversion rate will initially be 125.0031 shares of common stock per $1,000 principal amount of notes (equivalent to an initial conversion price of approximately $8.00 per share of common stock). The conversion rate will be subject to adjustment in some events but will not be adjusted for any accrued and unpaid interest. In addition, following certain corporate events that occur prior to the maturity date, the Company will increase the conversion rate for a holder who elects to convert its notes in connection with such a corporate event in certain circumstances. If the Company undergoes a fundamental change prior to the maturity date of the notes, holders may require the Company to repurchase for cash all or any portion of their notes at a fundamental change repurchase price equal to 100% of the principal amount of the notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. In accounting for the issuance of the 2.125% Notes, the Company separated the 2.125% Notes into liability and equity components. The carrying amounts of the liability component was calculated by measuring the fair value of a similar liability that does not have associated conversion features. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the par value of the 2.125% Notes as a whole. The excess of the principal amount of the liability component over its book value (debt discount) is accreted to interest expense over the term of the 2.125% Notes. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. In accounting for the issuance costs related to the 2.125% Notes, the Company allocated the total amount of issuance costs incurred to the liability and equity components based on their relative fair values. Issuance costs attributable to the liability component are being amortized to interest expense over the term of the 2.125% Notes, and the issuance costs attributable to the equity component are netted against the equity component in additional paid-in capital. The Company recorded issuance costs of $15 million and $9 million , respectively, for the liability and equity portions. The 2.125% Notes consisted of the following: December 31, (In millions) Principal amounts: Principal $ 805 Unamortized debt discount (1) (308 ) Unamortized debt issuance costs (14 ) Net carrying amount $ 483 Carrying amount of the equity component, net (2) $ 305 (1) Included in the consolidated balance sheets within Long-term debt, net and amortized over the remaining life of the notes using the effective interest rate method. (2) Included in the consolidated balance sheets within additional paid-in capital, net of $9 million in equity issuance costs. As of December 31, 2016 , the remaining life of the 2.125% Notes was approximately 117 months . Based on the closing price of the Company's common stock of $11.34 on December 30, 2016, the last business day of the 2016, the if-converted value of the 2.125% Notes exceeded its principal amount by approximately $336 million . The effective interest rate of the liability component of the 2.125% Notes is 8% . This interest rate was based on the interest rates of similar liabilities at the time of issuance that did not have associated conversion features. The following table sets forth total interest expense recognized related to the 2.125% Notes for the year ended December 31, 2016 : December 31, (In millions) Contractual interest expense $ 5 Interest cost related to amortization of debt issuance costs — Interest cost related to amortization of the debt discount $ 6 6.75% Senior Notes Due 2019 On February 26, 2014 , the Company issued $600 million of its 6.75% Senior Notes due 2019 ( 6.75% Notes). The 6.75% Notes are general unsecured senior obligations of the Company. Interest is payable on March 1 and September 1 of each year beginning September 1, 2014 until the maturity date of March 1, 2019 . The 6.75% Notes are governed by the terms of an indenture (the 6.75% Indenture) dated February 26, 2014 between the Company and Wells Fargo Bank, N.A., as trustee. During 2016 , the Company repurchased $404 million in aggregate principal amount of its 6.75% Notes pursuant to a partial tender offer for $442 million , which included payment of accrued and unpaid interest of $2 million . The Company incurred a total loss of $41 million in connection with the foregoing repurchase of the 6.75% Notes. As of December 31, 2016 , the outstanding aggregate principal amount of the 6.75% Notes was $196 million . At any time before March 1, 2019, the Company may redeem some or all of the 6.75% Notes at a price equal to 100% of the principal amount, plus accrued and unpaid interest and a “make whole” premium (as set forth in the 6.75% Indenture). Holders have the right to require the Company to repurchase all or a portion of the 6.75% Notes in the event that the Company undergoes a change of control, as defined in the 6.75% Indenture, at a price of 101% of the principal amount plus accrued and unpaid interest. Additionally, an event of default (as defined in the 6.75% Indenture) may result in the acceleration of the maturity of the 6.75% Notes. The 6.75% Indenture contains certain covenants that limit, among other things, the Company’s ability and the ability of its subsidiaries, to: • incur additional indebtedness, except specified permitted debt; • pay dividends and make other restricted payments; • make certain investments if an event of a default exists, or if specified financial conditions are not satisfied; • create or permit certain liens; • create or permit restrictions on the ability of its subsidiaries to pay dividends or make other distributions to the Company; • use the proceeds from sales of assets; • enter into certain types of transactions with affiliates; and • consolidate, merge or sell its assets as entirety or substantially as an entirety. On February 10, 2017, the Company settled $5 million in aggregate principal amount of its 6.75% Notes with treasury stock. 7.75% Senior Notes Due 2020 On August 4, 2010 , the Company issued $500 million of its 7.75% Senior Notes Due 2020 ( 7.75% Notes). The 7.75% Notes were general unsecured senior obligations of the Company. Interest was payable on February 1 and August 1 of each year beginning February 1, 2011 until the maturity date of August 1, 2020 . The 7.75% Notes were governed by the terms of an indenture (the 7.75% Indenture) dated August 4, 2010 between the Company and Wells Fargo Bank, N.A., as trustee. In 2014, the Company repurchased $50 million in aggregate principal amount of its 7.75% Notes in open market transactions for $49 million , which included payment of accrued and unpaid interest of $1 million . The Company recorded a total gain of $2 million in connection with the foregoing repurchase of the 7.75% Notes. During 2016 , the Company paid off the remaining $450 million in aggregate principal amount of its 7.75% Notes for $467 million , which included payment of accrued and unpaid interest of $5 million . The Company incurred a total loss of $16 million in connection with the foregoing repurchase of the 7.75% Notes. As of December 31, 2016 , the Company did no t have any 7.75% Notes outstanding. 7.50% Senior Notes Due 2022 On August 15, 2012 , the Company issued $500 million of its 7.50% Senior Notes due 2022 ( 7.50% Notes). The 7.50% Notes are general unsecured senior obligations of the Company. Interest is payable on February 15 and August 15 of each year beginning February 15, 2013 until the maturity date of August 15, 2022 . The 7.50% Notes are governed by the terms of an indenture (the 7.50% Indenture) dated August 15, 2012 between the Company and Wells Fargo Bank, N.A., as trustee. During 2014, the Company repurchased $25 million in aggregate principal amount of its 7.50% Notes in open market transactions for $24 million . The payment of accrued and unpaid interest included in the purchase price was immaterial. The Company incurred a total gain of $1 million in connection with the foregoing repurchase of the 7.50% Notes. During 2016 , the Company repurchased $125 million in aggregate principal amount of its 7.50% Notes) pursuant to a partial tender offer for $135 million , which included payment of accrued and unpaid interest of $1 million . The Company incurred a total loss of $10 million in connection with the foregoing repurchase of the 7.50% Notes. As of December 31, 2016 , the outstanding aggregate principal amount of the 7.50% Notes was $350 million . Prior to August 15, 2022, the Company may redeem some or all of the 7.50% Notes at a price equal to 100% of the principal amount, plus accrued and unpaid interest and a “make whole” premium (as defined in the 7.50% Indenture). Holders have the right to require the Company to repurchase all or a portion of the 7.50% Notes in the event that the Company undergoes a change of control, as defined in the 7.50% Indenture, at a repurchase price of 101% of the principal amount plus accrued and unpaid interest. Additionally, an event of default (as defined in the 7.50% Indenture) may result in the acceleration of the maturity of the 7.50% Notes. The 7.50% Indenture contains certain covenants that limit, among other things, the Company’s ability and the ability of its subsidiaries, to: • incur additional indebtedness, except specified permitted debt; • pay dividends and make other restricted payments; • make certain investments if an event of a default exists, or if specified financial conditions are not satisfied; • create or permit certain liens; • create or permit restrictions on the ability of its subsidiaries to pay dividends or make other distributions to the Company; • use the proceeds from sales of assets; • enter into certain types of transactions with affiliates; and • consolidate, merge or sell its assets as entirety or substantially as an entirety. On February 10, 2017, the Company settled $3 million in aggregate principal amount of its 7.50% Notes with treasury stock. 7.00% Senior Notes Due 2024 On June 16, 2014 , the Company issued $500 million of its 7.00% Senior Notes due 2024 ( 7.00% Notes). The 7.00% Notes are general unsecured senior obligations of the Company. Interest is payable on January 1 and July 1 of each year beginning January 1, 2015 until the maturity date of July 1, 2024 . The 7.00% Notes are governed by the terms of an indenture (the 7.00% Indenture) dated June 16, 2014 between the Company and Wells Fargo Bank, N.A., as trustee. During 2016 , the Company settled $84 million in aggregate principal amount of its 7.00% Notes, which included payment of accrued and unpaid interest of $1 million , for $77 million in cash and $8 million in treasury stock. The Company incurred a total loss of $1 million in connection with the foregoing repurchase of the 7.00% Notes. As of December 31, 2016 , the outstanding aggregate principal amount of the 7.00% Notes was $416 million . At any time before July 1, 2017, the Company may redeem up to 35% of the aggregate principal amount of the 7.00% Notes within 90 days of the closing of an equity offering with the net proceeds thereof at a redemption price equal to 107.000% of the principal amount thereof, together with accrued and unpaid interest to but excluding the date of redemption. Prior to July 1, 2019, the Company may redeem some or all of the 7.00% Notes at a price equal to 100% of the principal amount, plus accrued and unpaid interest and a “make whole” premium (as set forth in the 7.00% Indenture). Starting July 1, 2019, the Company may redeem the 7.00% Notes for cash at the following specified prices plus accrued and unpaid interest: Period Price as Beginning on July 1, 2019 through June 30, 2020 103.500 % Beginning on July 1, 2020 through June 30, 2021 102.333 % Beginning on July 1, 2021 through June 30, 2022 101.167 % On July 1, 2022 and thereafter 100.000 % Holders have the right to require the Company to repurchase all or a portion of the 7.00% Notes in the event that the Company undergoes a change of control, as defined in the 7.00% Indenture, at a repurchase price of 101% of the principal amount plus accrued and unpaid interest. Additionally, an event of default (as defined in the 7.00% Indenture) may result in the acceleration of the maturity of the 7.00% Notes. The 7.00% Indenture contains certain covenants that limit, among other things, the Company’s ability and the ability of its subsidiaries, to: • incur additional indebtedness, except specified permitted debt; • pay dividends and make other restricted payments; • make certain investments if an event of a default exists, or if specified financial conditions are not satisfied; • create or permit certain liens; • create or permit restrictions on the ability of its subsidiaries to pay dividends or make other distributions to the Company; • use the proceeds from sales of assets; • enter into certain types of transactions with affiliates; and • consolidate, merge or sell its assets as entirety or substantially as an entirety. On February 10, 2017, the Company settled $26 million in aggregate principal amount of its 7.00% Notes with treasury stock. The 6.75% Notes, 7.50% Notes, 7.00% Notes and 2.125% Notes rank equally with the Company’s existing and future senior debt and are senior to all of the Company’s future subordinated debt. The 6.75% Notes, 7.50% Notes, 7.00% Notes and 2.125% Notes rank junior to all of the Company’s future senior secured debt to the extent of the collateral securing such debt and are structurally subordinated to all existing and future debt and liabilities of the Company’s subsidiaries. Potential Repurchase of Outstanding Notes The Company may elect to purchase or otherwise retire the 6.75% Notes, 7.50% Notes, 7.00% Notes and 2.125% Notes with cash, stock or other assets from time to time in open market or privately negotiated transactions, either directly or through intermediaries, or by tender offer when the Company believes the market conditions are favorable to do so. Secured Revolving Line of Credit Loan and Security Agreement The Company and its subsidiary, AMD International Sales & Service, Ltd. (together, the Borrowers), entered into a loan and security agreement on November 12, 2013, as amended on December 11, 2014 (the Loan Agreement), for a secured revolving line of credit for a principal amount of up to $500 million (the Secured Revolving Line of Credit), with up to $75 million available for issuance of letters of credit, with a group of lenders and Bank of America, N.A., acting as agent for the lenders (the Agent). The Secured Revolving Line of Credit had a maturity date of November 12, 2018. Borrowings under the Secured Revolving Line of Credit were limited to up to 85% of eligible account receivable minus certain reserves. The borrowings of the Secured Revolving Line of Credit may be used for general corporate purposes, including working capital needs. Amended and Restated Loan and Security Agreement On April 14, 2015, the Borrowers and ATI Technologies ULC (collectively, the Loan Parties) amended and restated the Loan 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 the Agent. The Amended and Restated Loan Agreement provides for a Secured Revolving Line of Credit for a principal amount of up to $500 million with up to $75 million available for issuance of letters of credit, which remained unchanged from the Loan Agreement. 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. The Borrowers may elect a per annum interest rate equal to (a) the London Interbank Offered Rate (LIBOR) plus the applicable margin set forth in the chart below (the Applicable Margin) as determined by the average availability under the Secured Revolving Line of Credit and the fixed charge coverage ratio for the most recently ended four-fiscal-quarter period; or (b) (i) the greatest of (x) the Agent’s prime rate, (y) the federal funds rate, as published by the Federal Reserve Bank of New York plus 0.50% , and (z) LIBOR for a one-month period plus 1.00% , plus (ii) the Applicable Margin. Applicable Margin, if average availability is equal to or greater than 66.66% of the total commitment amount and the fixed charge coverage ratio for the most recently ended four-fiscal quarter period is greater than or equal to 1.25 to 1.00, is 0.25% for Base Rate Revolver Loans and 1.25% for LIBOR Revolver Loans. Otherwise, Applicable Margin is determined in accordance with the below table: Level Average Availability for Last Fiscal Month Base Rate Revolver Loans: Applicable Margin LIBOR Revolver Loans: Applicable Margin I greater than or equal to 66.66% of the Revolver Commitment 0.5% 1.5% II greater than or equal to 33.33% of the Revolver Commitment, less than 66.66% 0.75% 1.75% III less than 33.33% of the Revolver Commitment 1% 2% The Secured Revolving Line of Credit may be optionally prepaid or terminated, and unutilized commitments may be reduced at any time, in each case without premium or penalty. In connection with the Secured Revolving Line of Credit, the Borrowers will pay an unused line fee equal to 0.375% per annum, payable monthly on the unused amount of the commitments under the Secured Revolving Line of Credit. The unused line fee decreases to 0.25% per annum when 35% or more of the Secured Revolving Line of Credit is utilized. The Borrowers will pay (i) a monthly fee on all letters of credit outstanding under the Secured Revolving Line of Credit equal to the applicable LIBOR margin and (ii) a fronting fee to the Agent equal to 0.125% of all such letters of credit, payable monthly in arrears. The Amended and Restated Loan Agreement contains covenants that place certain restrictions on the Loan Parties’ ability to, among other things, allow certain of the Company’s subsidiaries that manufacture or process inventory for the Loan Parties to borrow secured debt or unsecured debt beyond a certain amount, amend or modify certain terms of any debt of $50 million or more or subordinated debt, create or suffer to exist any liens upon accounts or inventory, sell or transfer any of Loan Parties’ accounts or inventory other than certain ordinary-course transfers and certain supply chain finance arrangements, make certain changes to any Loan Party’s name or form or state of organization without notifying the Agent, liquidate, dissolve, merge, amalgamate, combine or consolidate, or become a party to certain agreements restricting the Loan Parties’ ability to incur or repay debt, grant liens, make distributions, or modify loan agreements. Further restrictions apply when certain payment conditions (the Payment Conditions) are not satisfied with respect to specified transactions, events or payments. The Payment Conditions include that (i) no default or event of default exists and (ii) at all times during the 45 consecutive days immediately prior to such transaction, event or payment and on a pro forma basis after giving effect to such transaction, event or payment and any incurrence or repayment of indebtedness in connection therewith, the Loan Parties’ Excess Cash Availability (as defined in the Amended and Restated Loan Agreement) is greater than the greater of 20% of the total commitment amount and $100 million . Such restrictions limit the Loan Parties’ ability to, among other things, create any liens upon any of the Loan Parties’ property other than customary permitted liens and liens on up to $1.5 billion of secured credit facilities debt (which amount includes the Secured Revolving Line of Credit), declare or make cash distributions, create any encumbrance on the ability of a subsidiary to make any upstream payments, make asset dispositions other than certain ordinary course dispositions and certain supply chain finance arrangements, make certain loans, make payments with respect to subordinated debt or certain borrowed money prior to its due date or become a party to certain agreements restricting the Loan Parties’ ability to enter into any non-arm’s-length transaction with an affiliate. The Loan Parties are required to repurchase, redeem, defease, repay, create a segregated account for the repayment of, or request Agent to reserve a sufficient available amount under the Secured Revolving Line of Credit for the repayment of, all debt for borrowed money exceeding $50 million , by no later than 60 days prior to its maturity date (not including the Secured Revolving Line of Credit). Any reserved funds for this purpose would not be included in domestic cash calculations. In addition, if at any time the Loan Parties’ Excess Cash Availability is less than the greater of 15% of the total commitment amount and $75 million , the Loan Parties must maintain a minimum fixed charge coverage ratio of 1.00 to 1.00 until (i) no event of default exists and (ii) the Loan Parties’ Excess Cash Availability is greater than the greater of 15% of the total commitment amount and $75 million for 45 consecutive days. The events of default under the Amended and Restated Loan Agreement include, among other things, payment defaults, the inaccuracy of representations or warranties, defaults in the performance of affirmative and negative covenants, bankruptcy and insolvency related defaults, a cross-default related to indebtedness in an aggregate amount in excess of $50 million , judgments entered against a Loan Party in an amount that exceeds cumulatively $50 million , certain ERISA events and events related to Canadian defined benefits plans and a change of control. When a Payment Condition has not been satisfied, additional events of default include, among other things, a loss, theft damage or destruction with respect to any collateral if the amount not covered by insurance exceeds $50 million . During 2016 , the Company repaid an aggregate of $230 million of the Secured Revolving Line of Credit. As of December 31, 2016 , the Company did no t have any borrowings outstanding under the Secured Revolving Line of Credit. At December 26, 2015 , the Secured Revolving Line of Credit had an outstanding loan balance of $230 million at an interest rate of 4.00% . At December 31, 2016 , the Secured Revolving Line of Credit had $19 million related to outstanding letters of credit and up to $121 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 December 31, 2016 , the Company was in compliance with all required covenants stated in the Loan Agreement. The agreements governing the 6.75% Notes, 7.50% Notes, 7.00% Notes, 2.125% Notes and the Secured Revolving Line of Credit contain cross-default provisions whereby a default under one agreement would likely result in cross defaults under agreements covering other borrowings. The occurrence of a default under any of these borrowing arrangements would permit the applicable note holders or the lenders under the Secured Revolving Line of Credit to declare all amounts outstanding under those borrowing arrangements to be immediately due and payable. 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 TFME. 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. Fourth Amendment to the Amended and Restated Loan and Security Agreement On September 7, 2016, the Loan Parties entered into a fourth amendment to the Amended and Restated Loan and Security Agreement (the Fourth 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 Fourth Amendment was to increase the dollar limit as set forth the definition related to certain supply chain finance arrangements. Capital Lease Obligations The Company terminated its capital lease obligations and entered into a non-cancelable operating lease agreement related to one of its facilities in Markham, Ontario, Canada during 2015. As of December 31, 2016 and December 26, 2015, the Company did no t have any capital lease obligations outstanding. Future Payments on Total Debt As of December 31, 2016 , the Company’s future debt payment obligations for the respective fiscal years were as follows: Long Term Debt (Principal only) (In millions) 2017 $ — 2018 — 2019 196 2020 — 2021 — 2022 and thereafter 1,571 Total $ 1,767 |
Other Income (expense), Net
Other Income (expense), Net | 12 Months Ended |
Dec. 31, 2016 | |
Income Statement Related Disclosures [Abstract] | |
Other Income (expense), Net | Other Income (expense), Net The following table summarizes the components of other income (expense), net: 2016 2015 2014 (In millions) Interest income $ 2 $ — $ — Gain on sale of 85% ATMP JV 146 — — Loss on debt redemption (68 ) — (61 ) Other — (5 ) (5 ) Other income (expense), net $ 80 $ (5 ) $ (66 ) |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 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 revenues and operating income (loss) before interest, other income (expense), net, and income taxes. These performance measures include the allocation of expenses to the operating segments based on management’s judgment. The Company 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, the charge related to the Sixth Amendment to the WSA with GF, restructuring and other special charges, net, amortization of acquired intangible assets, workforce rebalancing severance charges, goodwill impairment charge and significant or unusual lower of cost or market inventory adjustments. The Company also reported the results of former businesses in the All Other category because the operating results were not material. The following table provides a summary of net revenue and operating income (loss) by segment for 2016 , 2015 and 2014 . The results prior to July 1, 2014 have been recast to reflect the Company’s new reportable segments. 2016 2015 2014 (In millions) Net revenue: Computing and Graphics $ 1,967 $ 1,805 $ 3,132 Enterprise, Embedded and Semi-Custom 2,305 2,186 2,374 Total net revenue $ 4,272 $ 3,991 $ 5,506 Operating income (loss): Computing and Graphics $ (238 ) $ (502 ) $ (76 ) Enterprise, Embedded and Semi-Custom 283 215 399 All Other (417 ) (194 ) (478 ) Total operating loss $ (372 ) $ (481 ) $ (155 ) The following table provides major items included in All Other category: 2016 2015 2014 (In millions) Operating loss: Stock-based compensation expense $ (86 ) $ (63 ) $ (81 ) Restructuring and other special charges, net 10 (129 ) (71 ) Amortization of acquired intangible assets — (3 ) (14 ) Charge related to the Sixth Amendment to the WSA with GF (340 ) — — Goodwill impairment — — (233 ) Lower of cost or market inventory adjustment — — (58 ) Workforce rebalancing severance charges — — (14 ) Other (1 ) 1 (7 ) Total operating loss $ (417 ) $ (194 ) $ (478 ) The Company does not discretely allocate assets to its operating segments, nor does management evaluate operating segments using discrete asset information. The Company’s operations outside the United States include research and development activities; assembly, test, mark and packaging activities; and sales, marketing and administrative activities. The Company conducts product and system research and development activities for its products in the United States, with additional design and development engineering teams located in China, Canada, India, Singapore, and Taiwan. The Company’s ATMP facilities located in Malaysia and China were sold in the second quarter of 2016 (see NOTE 4). The Company’s material sales and marketing offices are located in the United States, Latin America, Europe and Asia. The following table summarizes sales to external customers by country, which is based on the billing location of the customer: 2016 2015 2014 (In millions) United States $ 923 $ 984 $ 1,030 Europe 155 168 325 China 1,108 1,145 2,324 Singapore 571 356 371 Japan 1,443 1,254 1,324 Other countries 72 84 132 Total sales to external customers $ 4,272 $ 3,991 $ 5,506 The following table summarizes sales to major customers that accounted for at least 10% of the Company’s consolidated net revenue for the respective years: 2016 2015 2014 Customer A 33 % 31 % 23 % Customer B 16 % 18 % 13 % Customer C 10 % 8 % 13 % Sales to customers A and B consisted of products from the Company's Enterprise, Embedded and Semi-Custom segment and sales to customer C consisted primarily of products from the Company's Computing and Graphics segment. The following table summarizes long-lived assets by geographic areas: 2016 2015 (In millions) United States $ 104 $ 123 Malaysia 9 11 China 7 5 Singapore 24 25 Other countries 20 24 Total long-lived assets $ 164 $ 188 |
Common Stock and Stockholders_
Common Stock and Stockholders’ Equity (Deficit) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Common Stock and Stockholders’ Equity (Deficit) | Common Stock and Stockholders’ Equity (Deficit) Common stock During the third quarter of 2016, the Company completed its registered underwritten public offering of 115 million shares of the Company’s common stock, par value $0.01 per share, at a public offering price of $6.00 per share, pursuant to an underwriting agreement with J.P. Morgan Securities LLC, Barclays Capital Inc. and Credit Suisse Securities (USA) LLC, as representatives of the several underwriters named therein. The resulting aggregate net proceeds to the Company from the common stock offering were approximately $667 million , after deducting underwriting discounts and offering expenses totaling approximately $23 million . As of December 31, 2016, there were 935 million shares of common stock outstanding. Stock-Based Incentive Compensation Plans The Company’s stock-based incentive programs are intended to attract, retain and motivate highly qualified employees. On April 29, 2004, the Company’s stockholders approved the 2004 Equity Incentive Plan (the 2004 Plan). As of December 31, 2016 , the Company also has stock options outstanding under equity compensation plans that the Company assumed as part of its SeaMicro acquisition. Shares reserved for future grants under the Company’s prior equity compensation plans were consolidated into the 2004 Plan; none of the reserved shares under the SeaMicro plan were consolidated into the 2004 Plan. As of December 31, 2016 , the Company had 31.5 million shares of common stock that were available for future grants and 72.1 million shares reserved for issuance upon the exercise of outstanding stock options or the vesting of unvested restricted stock units. Under the 2004 Plan, stock options generally vest and become exercisable over a three -year period from the date of grant and expire within ten years after the grant date. Unvested shares that are reacquired by the Company from forfeited outstanding equity awards become available for grant and may be reissued as new awards. Under the 2004 Plan, the Company can grant fair market value awards or full value awards. Fair market value awards are awards granted at or above the fair market value of the Company’s common stock on the date of grant. Full value awards are awards granted at less than the fair market value of the Company’s common stock on the date of grant. Awards can consist of (i) stock options and stock appreciation rights granted at the fair market value of the Company’s common stock on the date of grant and (ii) restricted stock or restricted stock units, as full value awards. The following is a description of the material terms of the awards that may be granted under the 2004 Plan. Stock Options . A stock option is the right to purchase shares of the Company’s common stock at a fixed exercise price for a fixed period of time. Under the 2004 Plan, nonstatutory and incentive stock options may be granted. The exercise price of the shares subject to each nonstatutory stock option and incentive stock option cannot be less than 100% of the fair market value of the Company’s common stock on the date of the grant. The exercise price of each option granted under the 2004 Plan must be paid in full at the time of the exercise. Stock Appreciation Rights . Awards of stock appreciation rights may be granted pursuant to the 2004 Plan. Stock appreciation rights may be granted to employees and consultants. No stock appreciation right may be granted at less than fair market value of the Company’s common stock on the date of grant or have a term of over ten years from the date of grant. Upon exercising a stock appreciation right, the holder of such right is entitled to receive payment from the Company in an amount determined by multiplying (i) the difference between the closing price of a share of the Company’s common stock on the date of exercise and the exercise price by (ii) the number of shares with respect to which the stock appreciation right is exercised. The Company’s obligation arising upon the exercise of a stock appreciation right may be paid in shares or in cash, or any combination thereof. Restricted Stock. Restricted stock can be granted to any employee, director or consultant. The purchase price for an award of restricted stock is $0.00 per share. Restricted Stock Units. Restricted stock units (RSUs) are awards that can be granted to any employee, director or consultant and that obligate the Company to issue a specific number of shares of the Company’s common stock in the future if the vesting terms and conditions are satisfied. The purchase price for the shares is $0.00 per share. Performance-based Restricted Stock Units. Performance-based Restricted Stock Units (PRSUs) can be granted to certain of the Company’s senior executives. The performance metrics can be financial performance, non-financial performance and/or market condition. Each PRSU award reflects a target number of shares (Target Shares) that may be issued to an award recipient before adjusting based on the Company’s financial performance, non-financial performance and/or market conditions. The actual number of shares that a grant recipient receives at the end of the period may range from 0% to 250% of the Target Shares granted, depending upon the degree of achievement of the performance target designated by each individual award. Stock options, stock appreciation rights, restricted stock, RSUs and PRSUs granted after April 29, 2015, generally may not vest in less than one year following the date of grant. Valuation and Expense Information Stock-based compensation expense related to employee stock options and restricted stock units, including PRSUs, was allocated in the consolidated statements of operations as follows: 2016 2015 2014 (In millions) Cost of sales $ 2 $ 3 $ 3 Research and development 49 36 44 Marketing, general, and administrative 35 24 34 Total stock-based compensation expense, net of tax of $0 $ 86 $ 63 $ 81 During 2016 , 2015 and 2014 , the Company did no t realize any excess tax benefits related to stock-based compensation and therefore the Company did not record any effects relating to financing cash flows. The Company did not capitalize stock-based compensation cost as part of the cost of an asset because the cost was immaterial. Stock Options . The Company uses the lattice-binomial model in determining the fair value of the employee stock options. The weighted-average estimated fair value of employee stock options granted for the years ended December 31, 2016 , December 26, 2015 and December 27, 2014 was $3.10 , $1.02 and $1.46 per share, respectively, using the following weighted-average assumptions: 2016 2015 2014 Expected volatility 62.33 % 60.14 % 53.36 % Risk-free interest rate 1.02 % 1.29 % 1.15 % Expected dividends — % — % — % Expected life (in years) 3.98 3.91 3.86 The Company uses a combination of the historical volatility of its common stock and the implied volatility for publicly traded options on the Company’s common stock as the expected volatility assumption required by the lattice-binomial model. The risk-free interest rate is based on the rate for a U.S. Treasury zero-coupon yield curve with a term that approximates the expected life of the option grant at the date closest to the option grant date. The expected dividend yield is zero as the Company does not expect to pay dividends in the future. The expected term of employee stock options represents the weighted-average period the stock options are expected to remain outstanding and is a derived output of the lattice-binomial model. The following table summarizes stock option activity, including market-based stock options, and related information: 2016 2015 2014 Number of Shares Weighted- Average Exercise Price Number of Shares Weighted- Average Exercise Price Number of Shares Weighted- Average Exercise Price (In millions, except share price) Stock options: Outstanding at beginning of year 32 $ 4.44 36 $ 4.78 35 $ 5.08 Granted 2 $ 6.98 8 $ 2.12 8 $ 3.73 Canceled (9 ) $ 5.53 (9 ) $ 4.91 (4 ) $ 7.64 Exercised (5 ) $ 4.75 (3 ) $ 1.61 (3 ) $ 1.47 Outstanding at end of year 20 $ 4.15 32 $ 4.44 36 $ 4.78 Exercisable at end of year 13 $ 4.32 21 $ 5.34 23 $ 5.28 As of December 31, 2016 , the weighted-average remaining contractual life of outstanding stock options was 4.29 years and their aggregate intrinsic value was $145 million . As of December 31, 2016 , the weighted-average remaining contractual life of exercisable stock options was 3.45 years and their aggregate intrinsic value was $90 million . The total intrinsic value of stock options exercised for 2016 , 2015 and 2014 was $10 million , $2 million and $7 million , respectively. As of December 31, 2016 , the Company had $11 million of total unrecognized compensation expense, net of estimated forfeitures, related to stock options that will be recognized over the weighted-average period of 1.78 years . RSUs. RSUs vest in accordance with the terms and conditions established by the Compensation and Leadership Resources Committee of the Board of Directors, and are based either on continued service or continued service and performance. The cost of RSUs is determined using the fair value of the Company’s common stock on the date of the grant, and the compensation expense is recognized over the service period. The summary of the changes in RSUs outstanding, including the PRSUs, during 2016 , 2015 and 2014 is presented below: 2016 2015 2014 Number of Shares Weighted- Average Fair Value Number of Shares Weighted- Average Fair Value Number of Shares Weighted- Average Fair Value (In millions except share price) Unvested balance at beginning of period 51 $ 2.61 43 $ 4.05 40 $ 4.52 Granted 29 $ 4.72 38 $ 2.03 23 $ 3.89 Forfeited (5 ) $ 2.95 (15 ) $ 3.71 (5 ) $ 4.48 Vested (23 ) $ 2.56 (15 ) $ 4.13 (15 ) $ 4.90 Unvested balance at end of period 52 $ 3.73 51 $ 2.61 43 $ 4.05 The total fair value of RSUs vested during 2016 , 2015 and 2014 was $151 million , $33 million and $60 million , respectively. Compensation expense recognized for the RSUs for 2016 , 2015 and 2014 was approximately $80 million , $57 million and $65 million , respectively. As of December 31, 2016 , the Company had $121 million of total unrecognized compensation expense, net of estimated forfeitures, related to RSUs that will be recognized over the weighted-average period of 1.76 years . PRSUs. The Company estimated the fair value for the PRSUs with a market condition using Monte Carlo simulation model on the date of grant. During 2016 , the Company granted 2.0 million PRSUs that included a market condition to certain of the Company’s senior executives. During 2015 , the Company granted 5.2 million PRSUs to certain of the Company’s certain senior executives, of which 3.9 million PRSUs included a market condition. The summary of the changes in the PRSUs during 2016 , 2015 and 2014 is presented below. 2016 2015 2014 (Shares in millions) Unvested shares at beginning of period 7 9 5 Granted 5 5 5 Forfeited (2 ) (7 ) (1 ) Vested (5 ) — — Unvested shares at end of period 5 7 9 |
Other Employee Benefit Plans
Other Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Other Employee Benefit Plans | Other Employee Benefit Plans The Company has a retirement savings plan, commonly known as a 401(k) plan that allows participating employees in the United States to contribute up to 100% of their pre-tax salary subject to Internal Revenue Service limits. The Company matched 75% of employees’ contributions up to 6% of their compensation, to a maximum per employee match of $11,925 , $11,925 and $11,700 for 2016 , 2015 and 2014 , respectively. The Company’s contributions to the 401(k) plan for 2016 , 2015 and 2014 were approximately $16 million , $16 million and $18 million , respectively. |
Commitments and Guarantees
Commitments and Guarantees | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Guarantees | Commitments and Guarantees Operating Leases As of December 31, 2016 , the Company’s future non-cancelable operating lease commitments, including those for facilities vacated in connection with restructuring activities, were as follows: Year Operating leases (In millions) 2017 $ 49 2018 51 2019 46 2020 43 2021 64 2022 and thereafter 135 Total non-cancelable operating lease commitments $ 388 The Company leases certain of its facilities, and in some jurisdictions, the Company leases the land on which these facilities are built, under non-cancelable lease agreements that expire at various dates through 2028. The Company also leases certain manufacturing and office equipment for terms ranging from one to five years. Rent expense for 2016 , 2015 and 2014 was $39 million , $47 million and $59 million , respectively. In December 1998, the Company arranged for the sale of its marketing, general and administrative facility in Sunnyvale, California and leased it back for a period of 20 years. The Company recorded a deferred gain of $37 million on the sale and is amortizing it over the life of the lease. During the second quarter of 2016, the Company signed an amendment to the lease agreement associated with this facility in Sunnyvale, California so that the lease expires in December 2017. In connection with the amendment, the lease payments were reduced for 2017. During the third quarter of 2016, the Company entered into a 10 -year operating lease to occupy 220,000 square feet of new office space in Santa Clara. Base rent obligation is estimated to commence in August 2017 and the total estimate base rent payments over the life of the lease are approximately $125 million . In addition to the base rent payments, the Company will be obligated to pay certain customary amounts for its share of operating expenses and tax obligation. The Company has the option to extend the term of the lease for an additional two five -year periods. In September 2013, the Company sold a light industrial building in Singapore and leased back a portion of the original space. The Company recorded a deferred gain of $14 million on the sale and is amortizing over the initial lease term. The initial operating lease term expires in September 2023 and provides for options to extend the lease for 4 years at the end of the initial lease term, and for an additional 3.5 years thereafter. Certain other operating leases contain provisions for escalating lease payments subject to changes in the consumer price index. Total future lease obligations as of December 31, 2016 were $388 million . Purchase and Other Contractual Obligations The Company’s purchase obligations primarily include the Company’s obligations to purchase wafers and substrates from third parties. As of December 31, 2016 , total non-cancelable purchase obligations, excluding the Company’s wafer purchase commitments to GF under the WSA, were $447 million . The Company also had other contractual obligations, included in Other long-term liabilities on its consolidated balance sheet, which primarily consisted of $91 million of payments due under certain software and technology licenses that will be paid through 2020. Future unconditional purchase obligations as of December 31, 2016 were as follows: Year Unconditional purchase obligations (In millions) 2017 $ 391 2018 86 2019 51 2020 9 2021 1 2022 and thereafter — Total unconditional purchase commitments $ 538 Obligations to GF As of December 31, 2016 , the Company's minimum purchase obligations for wafer purchases for the years 2017 through 2020 are approximately $3.3 billion . 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 conditions for one year. Subject to certain exceptions, the Company also offers a three -year limited warranty to end users for those CPU and AMD A-Series APU products purchased as individually packaged products, commonly referred to as “processors in a box”, and for PC workstation products. The Company also offered extended limited warranties to certain customers of “tray” microprocessor products and/or workstation 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 during the years ended December 31, 2016 and December 26, 2015 are as follows: December 31, December 26, (In millions) Beginning balance $ 15 $ 19 New warranties issued during the period 21 28 Settlements during the period (19 ) (26 ) Changes in liability for pre-existing warranties during the period, including expirations (5 ) (6 ) Ending balance $ 12 $ 15 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
Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Loss Contingency [Abstract] | |
Contingencies | 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 our 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 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. 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. The discovery process is ongoing. On September 4, 2015, plaintiffs filed their motion for class certification. A court-ordered mediation held in January 2016 did not result in a settlement of the lawsuit. 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 Lawsuit 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 the Company’s 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 the Company’s 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 shareholder vote on AMD’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. ZiiLabs Litigation On December 16, 2016, a patent lawsuit captioned ZiiLabs v. AMD , C.A. No. 2:16-cv-1418 in the United States District Court for Eastern District of Texas (the “ZiiLabs Lawsuit”) was filed against us in the United States District Court for the Eastern District of Texas. The complaint alleges that AMD infringes four patents related generally to graphics processors and memory controllers. The complaint seeks damages, interest, and attorneys’ fees. ZiiLabs filed several similar lawsuits against other companies on the same day. On the same date, ZiiLabs also filed a complaint with the United States International Trade Commission (“USITC”) pursuant to Section 337 of the Tariff Act of 1930 against AMD and several other companies asserting the same four patents. The complaint seeks a limited exclusion order barring the importation of certain products that contain AMD memory controllers and graphics processors. AMD’s customer is also a named respondent. On January 18, 2017, the USITC announced that it would institute the investigation, entitled 337-TA-1037, In the Matter of Certain Graphics Processors, DDR Memory Controllers, and Products Containing the Same . 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. Environmental Matters The Company is named as a responsible party on Superfund clean-up orders for three sites in Sunnyvale, California that are on the National Priorities List. Since 1981, the Company has discovered hazardous material releases to the groundwater from former underground tanks and proceeded to investigate and conduct remediation at these three sites. The chemicals released into the groundwater were commonly used in the semiconductor industry in the United States in the wafer fabrication process prior to 1979. In 1991, the Company received Final Site Clean-up Requirements Orders from the California Regional Water Quality Control Board relating to the three sites. The Company has entered into settlement agreements with other responsible parties on two of the orders. During the term of such agreements, other parties have agreed to assume most of the foreseeable costs as well as the primary role in conducting remediation activities under the orders. The Company remains responsible for additional costs beyond the scope of the agreements as well as all remaining costs in the event that the other parties do not fulfill their obligations under the settlement agreements. To address anticipated future remediation costs under the orders, the Company has computed and recorded an estimated environmental liability of approximately $4 million and has not recorded any potential insurance recoveries in determining the estimated costs of the cleanup. The progress of future remediation efforts cannot be predicted with certainty and these costs may change. The Company believes that any amount in addition to what has already been accrued would not be material. 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 financial position, results of operations, or cash flows. |
Restructuring and Other Special
Restructuring and Other Special Charges, Net | 12 Months Ended |
Dec. 31, 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 involves a reduction of global headcount by approximately 5% and includes organizational actions such as outsourcing certain IT services and application development. During 2015, the Company recorded a $37 million restructuring charge, which consisted of $27 million for severance and benefit costs, $1 million for facilities-related costs and $9 million for intangible asset-related charges. The actions associated with the 2015 Restructuring Plan will be completed by the end the first quarter of 2017. The following table provides a summary of the restructuring activities during 2016 and the related liabilities recorded in Other current liabilities and Other long-term liabilities on the Company’s consolidated balance sheets as of December 31, 2016 : Severance Other exit Total (In millions) Balance as of December 26, 2015 $ 14 $ — $ 14 Charges (reversals), net (1 ) — (1 ) Cash payments (10 ) — (10 ) Balance as of December 31, 2016 $ 3 $ — $ 3 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. The Company recorded a $57 million restructuring charge in the fourth quarter of 2014, which consisted of $44 million for severance and costs related to the continuation of certain employee benefits, $6 million for contract or program termination costs, $1 million for facilities-related costs and $6 million for asset impairments, a non-cash charge. During 2015, the Company recorded a $16 million restructuring charge, which consisted of $5 million non-cash charge related to asset impairments, $2 million for severance and related benefits and $9 million for facilities-related costs. The 2014 Restructuring Plan was completed during the third quarter of 2015. The following table provides a summary of the restructuring activities during 2016 and the related liabilities recorded in Other current liabilities and Other long-term liabilities on the Company’s consolidated balance sheets as of December 31, 2016 : Severance and related benefits Other exit related costs Total (In millions) Balance as of December 26, 2015 $ 5 $ 15 $ 20 Charges (reversals), net (2 ) (7 ) (9 ) Cash payments (1 ) (6 ) (7 ) Balance as of December 31, 2016 $ 2 $ 2 $ 4 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 consolidated statements of operations during 2015. This charge consisted of 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 substantially completed this exit activity during the second quarter of 2016. Executive Officer Separation In the fourth quarter of 2014, the Company recorded other special charges of $13 million . The amount primarily included $10 million due to the departure of the Company’s former CEO, of which $5 million was related to cash and $5 million was related to stock-based compensation expense. The amount is recorded under “Restructuring and other special charges, net” on the consolidated statements of operations. |
Supplementary Financial Informa
Supplementary Financial Information (unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | |
Supplementary Financial Information (unaudited) | Supplementary Financial Information (unaudited) The Company uses a 52 or 53 week fiscal year ending on the last Saturday in December. All quarters of 2016 and 2015 except the fourth quarter of 2016 consisted of 13 weeks; the fourth quarter of 2016 consisted of 14 weeks. (In millions, except per share amounts) 2016 2015 Dec. 31 Sep. 24 Jun. 25 Mar. 26 Dec. 26 Sep. 26 Jun. 27 Mar. 28 Net revenue $ 1,106 $ 1,307 $ 1,027 $ 832 $ 958 $ 1,061 $ 942 $ 1,030 Cost of sales (1) 755 1,248 708 563 675 822 710 704 Gross margin 351 59 319 269 283 239 232 326 Research and development 264 259 243 242 229 241 235 242 Marketing, general and administrative 121 117 117 105 109 108 134 131 Amortization of acquired intangible assets — — — — — — — 3 Restructuring and other special charges (reversals), net — — (7 ) (3 ) (6 ) 48 — 87 Licensing gain (31 ) (24 ) (26 ) (7 ) — — — — Operating income (loss) (3 ) (293 ) (8 ) (68 ) (49 ) (158 ) (137 ) (137 ) Interest expense (34 ) (41 ) (41 ) (40 ) (41 ) (39 ) (40 ) (40 ) Other income (expense), net (2) (7 ) (63 ) 150 — (2 ) — (3 ) — Income (loss) before income taxes (44 ) (397 ) 101 (108 ) (92 ) (197 ) (180 ) (177 ) Provision for income taxes 5 4 29 1 10 — 1 3 Equity in income (loss) of ATMP JV (2 ) (5 ) (3 ) — — — — — Net income (loss) (51 ) (406 ) 69 (109 ) (102 ) (197 ) (181 ) (180 ) Net income (loss) per share Basic $ (0.06 ) $ (0.50 ) $ 0.09 $ (0.14 ) $ (0.13 ) $ (0.25 ) $ (0.23 ) $ (0.23 ) Diluted $ (0.06 ) $ (0.50 ) $ 0.08 $ (0.14 ) $ (0.13 ) $ (0.25 ) $ (0.23 ) $ (0.23 ) Shares used in per share calculation Basic 931 815 794 793 791 785 778 777 Diluted 931 815 821 793 791 785 778 777 (1) During the third quarter of 2016, the Company recorded a charge of $340 million , consisting of the $100 million payment under the Sixth Amendment and the $240 million value of the warrant under the Warrant Agreement issued in consideration of the Sixth Amendment. During 2015, the Company recorded a technology node transition charge of $33 million in the second quarter and an inventory write-down of $65 million in the third quarter. (2) The Company recorded a pre-tax gain of $150 million on the sale of its 85% equity interest in ATMP JV during the second quarter of 2016. During the third quarter of 2016, as a result of certain purchase price adjustments, the Company recognized a charge of $4 million . |
Significant Accounting Polici30
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Fiscal Year | Fiscal Year . The Company uses a 52 or 53 week fiscal year ending on the last Saturday in December. Fiscal 2016 , 2015 and 2014 ended December 31, 2016 , December 26, 2015 and December 27, 2014 , respectively. Fiscal 2016, 2015 and 2014 consisted of 53, 52 and 52 weeks, respectively. |
Principles of Consolidation | Principles of Consolidation. The consolidated financial statements include the Company’s accounts and those of its wholly-owned subsidiaries. Upon consolidation, all significant inter-company accounts and transactions are eliminated. |
Use of Estimates | Use of Estimates. The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of commitments and contingencies at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results are likely to differ from those estimates, and such differences may be material to the financial statements. Areas where management uses subjective judgment include, but are not limited to, revenue allowances, inventory valuation, valuation and impairment of goodwill, valuation of investments in marketable securities, deferred income taxes and restructuring charges. |
Revenue Recognition | Revenue Recognition. The Company recognizes revenue from products sold directly to customers, including original equipment manufacturers (OEMs), when persuasive evidence of an arrangement exists, the price is fixed or determinable, delivery has occurred and collectability is reasonably assured. Estimates of product returns, allowances and future price reductions, based on actual historical experience and other known or anticipated trends and factors, are recorded at the time revenue is recognized. The Company sells to distributors under terms allowing the majority of distributors certain rights of return and price protection on unsold merchandise held by them. The distributor agreements, which may be cancelled by either party upon specified notice, generally contain a provision for the return of those of the Company’s products that the Company has removed from its price book and that are not more than 12 months older than the manufacturing code date. In addition, some agreements with distributors may contain standard stock rotation provisions permitting limited levels of product returns. Therefore, the Company is unable to estimate the product returns and pricing when the product is sold to the distributors. Accordingly, the Company defers the gross margin resulting from the deferral of both revenue and related product costs from sales to distributors with agreements that have the aforementioned terms until the merchandise is resold by the distributors and reports such deferred amounts as “Deferred income on shipments to distributors” on its consolidated balance sheet. Products are sold to distributors at standard published prices that are contained in price books that are broadly provided to the Company’s various distributors. Distributors are then required to pay for these products within the Company’s standard contractual terms, which are typically net 60 days. The Company records allowances for price protection given to distributors and customer rebates in the period of distributor re-sale. The Company determines these allowances based on specific contractual terms with its distributors. Price reductions generally do not result in sales prices that are less than the Company’s product cost. Deferred income on shipments to distributors is revalued at the end of each period based on the change in inventory units at distributors, latest published prices and latest product costs. The Company records estimated reductions to revenue under distributor and customer incentive programs, including certain cooperative advertising and marketing promotions and volume based incentives and special pricing arrangements, at the time the related revenues are recognized. For transactions where the Company reimburses a customer for a portion of the customer’s cost to perform specific product advertising or marketing and promotional activities, such amounts are recorded as a reduction of revenue unless they qualify for expense recognition. Shipping and handling costs associated with product sales are included in cost of sales. |
Inventories | Inventories. Inventories are stated at standard cost adjusted to approximate the lower of actual cost (first-in, first-out method) or market. The Company adjusts inventory carrying value for estimated obsolescence equal to the difference between the cost of inventory and the estimated market value based upon assumptions about future demand and market conditions. The Company fully reserves for inventories and noncancelable purchase orders for inventory deemed obsolete. The Company performs periodic reviews of inventory items to identify excess inventories on hand by comparing on-hand balances to anticipated usage using recent historical activity as well as anticipated or forecasted demand. If estimates of customer demand diminish further or market conditions become less favorable than those projected by the Company, additional inventory adjustments may be required . |
Goodwill | Goodwill. Goodwill represents the excess of the purchase price over the fair value of net tangible and identifiable intangible assets acquired. In accordance with Accounting Standards Codification (ASC) 350, “Goodwill and Other Intangible Assets,” goodwill is not amortized, but rather is tested for impairment at least annually or more frequently if indicators of impairment present. The Company performs its annual goodwill impairment analysis as of the first day of the fourth quarter of each year and, if certain events or circumstances indicate that an impairment loss may have been incurred, on an interim basis. In assessing impairment on goodwill, the Company first analyzes qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. The qualitative factors the Company assesses include long-term prospects of its performance, share price trends and market capitalization, and Company-specific events. If the Company concludes it is more likely than not that the fair value of a reporting unit exceeds its carrying amount, the Company does not need to perform the two-step impairment test. If based on that assessment, the Company believes it is more likely than not that the fair value of the reporting unit is less than its carrying value, a two-step goodwill impairment test will be performed. The first step of the impairment test is to compare the fair value of each reporting unit to its carrying value. If step one indicates that impairment potentially exists, the second step is performed to measure the amount of impairment, if any. Goodwill impairment exists when the estimated fair value of goodwill is less than its carrying value. |
Commitments and Contingencies | Commitments and Contingencies. From time to time the Company is a defendant or plaintiff in various legal actions that arise in the normal course of business. The Company is also a party to environmental matters, including local, regional, state and federal government clean-up activities at or near locations where the Company currently or has in the past conducted business. The Company is required to assess the likelihood of any adverse judgments or outcomes to these matters as well as potential ranges of reasonably possible losses. A determination of the amount of reserves required for these commitments and contingencies, if any, that would be charged to earnings, includes assessing the probability of adverse outcomes and estimating the amount of potential losses. The required reserves, if any, may change in the future due to new developments in each matter or changes in circumstances such as a change in settlement strategy. Changes in required reserves could increase or decrease the Company’s earnings in the period the changes are made (See Notes 16 and 17). |
Restructuring Charges | Restructuring Charges. Restructuring charges are primarily comprised of severance costs, contract and program termination costs, asset impairments and costs of facility consolidation and closure. Restructuring charges are recorded upon approval of a formal management plan and are included in the operating results of the period in which such plan is approved and the expense becomes estimable. To estimate restructuring charges, management utilizes assumptions of the number of employees that would be involuntarily terminated and of future costs to operate and eventually vacate duplicate facilities. Severance and other employee separation costs are accrued when it is probable that benefits will be paid and the amount is reasonably estimable. The rates used in determining severance accruals are based on the Company’s policies and practices and negotiated settlements. |
Cash Equivalents | Cash Equivalents. Cash equivalents consist of financial instruments that are readily convertible into cash and have original maturities of three months or less at the time of purchase. |
Accounts Receivables | Accounts Receivable. The Company maintains an allowance for doubtful accounts based on its assessment of the collectability of amounts owned by customers. The allowance consists of known specific troubled accounts as well as an amount based on overall estimated potential uncollectible accounts receivable based on historical experience. |
Investments in Certain Debt and Equity Securities | Investments in Certain Debt and Equity Securities . The Company classifies its investments in debt and marketable equity securities at the date of acquisition as available-for-sale. Available-for-sale securities are reported at fair value with the related unrealized gains and losses included, net of tax, in accumulated other comprehensive loss, a component of stockholders’ equity. Realized gains and losses and declines in the value of available-for-sale securities determined to be other than temporary are included in other income (expense), net. The cost of securities sold is determined based on the specific identification method. The Company classifies investments in debt securities with maturities of more than three months at the time of purchase as marketable securities on its consolidated balance sheet. Classification of these securities as current is based on the Company’s intent and belief in its ability to sell these securities and use the proceeds from sale in operations within 12 months. |
Derivative Financial Instruments | Derivative Financial Instruments. The Company maintains a foreign currency hedging strategy which uses derivative financial instruments to mitigate the risks associated with changes in foreign currency exchange rates. This strategy takes into consideration all of the Company’s consolidated exposures. The Company does not use derivative financial instruments for trading or speculative purposes. In applying its strategy, the Company used foreign currency forward contracts to hedge certain forecasted expenses denominated in foreign currencies. The Company designated these contracts as cash flow hedges of forecasted expenses, to the extent eligible under the accounting rules, and evaluates hedge effectiveness prospectively and retrospectively. As such, the effective portion of the gain or loss on these contracts is reported as a component of accumulated other comprehensive loss and reclassified to earnings in the same line item as the associated forecasted transaction and in the same period during which the hedged transaction affects earnings. Any ineffective portion is immediately recorded in earnings. The Company also uses, from time to time, foreign currency forward contracts to economically hedge recognized foreign currency exposures on the balance sheets of various subsidiaries. The Company does not designate these forward contracts as hedging instruments. Accordingly, the gain or loss associated with these contracts is immediately recorded in earnings. |
Property, Plant and Equipment | Property, Plant and Equipment. Property, plant and equipment are stated at cost. Depreciation and amortization are provided on a straight-line basis over the estimated useful lives of the assets for financial reporting purposes. Estimated useful lives for financial reporting purposes are as follows: equipment, two to six years ; buildings and building improvements, up to 40 years ; and leasehold improvements, measured by the shorter of the remaining terms of the leases or the estimated useful economic lives of the improvements. |
Assets Held for Sale | Assets Held for Sale. Assets held for sale represents components that meet accounting requirements to be classified as held for sale and presented as single asset and liability amounts in the Company’s financial statements at lower of carrying value or fair value, less cost to sell. The determination of fair value involves significant judgments and assumptions. In determining the fair value less cost to sell, the Company considered factors including, among others, the nature of the sales transaction, the composition of assets and/or businesses in the disposal group, current sales prices for comparable assets and/or businesses and negotiations with third party purchaser(s). |
Product Warranties | Product Warranties. 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 conditions for one year. Subject to certain exceptions, the Company also offers a three-year limited warranty to end users for those central processing unit (CPU) and AMD A-Series accelerated processing unit (APU) products purchased as individually packaged products commonly referred to as “processors in a box”, and for PC workstation products. The Company also offered extended limited warranties to certain customers of “tray” microprocessor products and/or workstation graphics products who have written agreements with the Company and target their computer systems at the commercial and/or embedded markets. The Company accrues warranty costs at the time of sale of warranted products. |
Foreign Currency Translation/Transactions | Foreign Currency Translation/Transactions. The functional currency of all of the Company’s foreign subsidiaries is the U.S. dollar. Assets and liabilities denominated in non-U.S. dollars have been remeasured into U.S. dollars at current exchange rates for monetary assets and liabilities and historical exchange rates for non-monetary assets and liabilities. Non-U.S. dollar denominated transactions have been remeasured at average exchange rates in effect during each period, except for those cost of sales and expense transactions related to non-monetary balance sheet amounts, which have been remeasured at historical exchange rates. The gains or losses from foreign currency remeasurement are included in earnings. |
Foreign Subsidies | Foreign Subsidies. The Company received investment grants in connection with the construction and operation of certain facilities in Asia. Generally, such grants are subject to forfeiture in declining amounts over the life of the agreement if the Company does not maintain certain levels of employment or meet other conditions specified in the relevant grant documents. Accordingly, amounts granted are initially recorded as a receivable until cash proceeds are received. In the period the grant receivable is recorded, a current and long-term liability is also recorded which is subsequently amortized as a reduction to cost of sales. The Company also received grants relating to certain research and development projects. These research and development funds are generally recorded as a reduction of research and development expenses when all conditions and requirements set forth in the underlying grant agreement are met. |
Marketing, Communications and Advertising Expenses | Marketing, Communications and Advertising Expenses. Marketing, communications and advertising expenses for 2016 , 2015 and 2014 were approximately $131 million , $154 million and $194 million , respectively. Cooperative advertising funding obligations under customer incentive programs are accrued and the costs are recorded upon agreement with customers and vendor partners. Cooperative advertising expenses are recorded as marketing, general and administrative expense to the extent the cash paid does not exceed the estimated fair value of the advertising benefit received. Any excess of cash paid over the estimated fair value of the advertising benefit received is recorded as a reduction of revenue. |
Net Loss Per Share | Net Loss Per Share. Basic net loss per share is computed based on the weighted-average number of shares outstanding and shares issuable upon exercise of the warrants issued by the Company to West Coast Hitech L.P. (WCH), in connection with the GLOBALFOUNDRIES, Inc. (GF) transaction in 2009. On March 7, 2014 , the Company issued 35 million shares of common stock pursuant to the cashless exercise in full by WCH of its warrant to purchase up to 35 million shares of the Company’s common stock at an exercise price of $0.01 per share. As a result, the warrant is no longer outstanding. The issuance of the common stock did not have any effect on basic and dilutive earnings per share amounts because the full 35 million shares of common stock issuable to WCH had already been included in the denominator for calculating basic and dilutive earnings per share for all periods presented. Diluted net 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 and potentially dilutive shares issuable upon conversion of the 2.125% Convertible Senior Notes due 2026 ( 2.125% Notes) and the exercise of the warrant under the warrant agreement (the Warrant Agreement) with WCH, a wholly-owned subsidiary of Mubadala Development Company PJSC (Mubadala). |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss. Unrealized holding gains or losses on the Company’s available-for-sale securities and unrealized holding gains and losses on derivative financial instruments qualifying as cash flow hedges are included in other comprehensive loss. |
Stock-Based Compensation | Stock-Based Compensation . The Company estimates stock-based compensation cost for stock options at the grant date based on the option’s fair-value as calculated by the lattice-binomial option-pricing model. For restricted stock units, including performance-based restricted stock units (PRSUs), fair value is based on the closing price of the Company’s common stock on the grant date. The Company estimates the grant-date fair value of restricted stock units that involve a market condition using a Monte Carlo simulation model. Compensation expense is recognized over the vesting period of the applicable award using the straight-line method, except for the compensation expense related to PRSUs, which are recognized ratably for each vesting tranche from the service inception date to the end of the requisite service period. The application of the lattice-binomial option-pricing model requires the use of extensive actual employee exercise behavior data and the use of a number of complex assumptions including expected volatility of the Company’s common stock, risk-free interest rate and expected dividends. Significant changes in any of these assumptions could materially affect the fair value of stock options granted in the future. Forfeiture rates are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates in order to derive the Company’s best estimate of awards ultimately expected to vest. |
Recently Adopted and Issued Accounting Standards | Recently Adopted Accounting Standards Income Taxes . 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 all deferred tax assets and liabilities be classified as non-current on the consolidated balance sheet. The Company early adopted ASU 2015-17 in the first quarter of 2016 and elected prospective application. As a result of the adoption, the Company netted $31 million of deferred tax assets and deferred tax liabilities and reclassified $8 million of current deferred tax assets and $6 million of current deferred tax liabilities to non-current deferred tax assets and liabilities, respectively, on its condensed consolidated balance sheet as of March 26, 2016. 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 debt issuance costs related to a recognized liability in the balance sheet as a direct deduction from the carrying amount of that related liability rather than as an asset. Amortization of the costs will continue to be reported as interest expense. In August 2015, the FASB issued ASU 2015-15, which clarified that debt issuance costs related to line-of-credit arrangements could continue to be presented as an asset and be subsequently amortized over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the arrangement. The Company retrospectively adopted ASU 2015-03 and 2015-15 in the first quarter of 2016 and r eclassified debt issuance 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. 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. The Company adopted ASU 2014-15 in the fourth quarter of 2016. The Company did not identify any conditions that raised substantial doubt about its ability to continue as a going concern as of the date of issuance of its consolidated financial statements, and accordingly no further disclosures are required. Recently Issued Accounting Standards Inventory. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory (ASU 2015-11), which requires entities to measure inventory at the lower of cost or net realizable value. Current guidance requires inventory to be measured at the lower of cost or market, with market defined as replacement cost, net realizable value, or net realizable value less a normal profit margin. This ASU simplifies the subsequent measurement of inventory by replacing the lower of cost or market test with a lower of cost or net realizable value test. The Company will adopt this guidance in the first quarter of 2017 and does not expect an impact 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 and replaces most existing revenue recognition guidance in U.S. GAAP. Under the new standard, revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. In addition, the new standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The FASB has issued several amendments to the new standard, including clarification on accounting for licenses of intellectual property and identifying performance obligations. The new standard is effective for annual reporting periods beginning after December 15, 2017. The new standard permits companies to early adopt the new standard, but not before annual reporting periods beginning after December 15, 2016. The Company will not early adopt the new standard and therefore the new standard will be effective for the Company in the first quarter of its fiscal 2018. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or prospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application and providing additional disclosures comparing results to the previous rules in the year of adoption of the new standard (the modified retrospective method or the cumulative catchup method). The Company currently anticipates adopting the standard using the full retrospective method to restate each prior reporting period presented. The Company’s ability to adopt utilizing the full retrospective method is dependent upon system readiness and the completion of its analysis of information necessary to restate prior period financial statements. In 2016, the Company established a cross-functional team consisting of representatives across both of its business segments. While the Company is continuing to assess all potential impacts of the standard, it currently believes the most significant impact relates to accelerated revenue recognition for sales to its distributors. This is due to a change in revenue recognition from the point of resale by its distributors to their end customers, to the initial point of sales to the Company’s distributors. The Company currently expects other revenue streams to remain substantially unchanged. As part of the Company’s assessment and implementation plan, the Company is evaluating and implementing changes to its policies, procedures and controls. Financial Instruments. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01), which requires that most equity investments be measured at fair value, with subsequent changes in fair value recognized in net income. The ASU also impacts financial liabilities under the fair value option and the presentation and disclosure requirements for financial instruments. In addition, the FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. Entities will have to assess the realizability of such deferred tax assets in combination with the entities other deferred tax assets. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017 and for 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. In February 2016, the FASB issued ASU No. 2016-02, Leases (ASU 2016-02), which increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. 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, lessees must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. 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 not expecting any material impact from its adoption of ASU 2016-07 on its consolidated financial statements. Stock Compensation. In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718) Improvements to Employee Share-Based Payment Accounting (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 will adopt this guidance in the first quarter of 2017 and will elect to continue to estimate forfeitures expected to occur to determine the amount of compensation cost to be recognized in each period. In the first quarter of 2017 the Company will record a $95 million cumulative-effect adjustment increase in retained earnings and an offsetting increase in deferred tax assets for previously unrecognized excess tax benefits that existed as of December 31, 2016. Since substantially all of the Company’s U.S. and foreign deferred tax assets, net of deferred tax liabilities, are subject to a valuation allowance and the realization of these assets is not more likely than not to be achieved, the Company will record a $95 million valuation allowance against these deferred tax assets with an offsetting decrease in retained earnings. The Company will elect to report cash flows related to excess tax benefits on a prospective basis. The presentation requirement for cash flows related to employee taxes paid for withheld shares will not impact the statements of cash flows since such cash flows have historically been presented as a financing activity. Financial Instruments . In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments (ASU 2016-13). The standard changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. ASU 2016-13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. Early adoption is permitted for fiscal years, and interim periods within those years, beginning after December 15, 2018. The Company is currently evaluating the timing of adoption and impact of this new standard on its consolidated financial statements. Statement of Cash Flows . In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (ASU 2016-15), which is intended to reduce the existing diversity in practice in how certain cash receipts and cash payments are classified in the statement of cash flows. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years with early adoption permitted, provided that all of the amendments are adopted in the same period. The Company is currently evaluating the impact of its pending adoption of ASU 2016-15 on its consolidated financial statements. Income Taxes . In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740), Intra-Entity Transfers of Assets Other Than Inventory (ASU 2016-16), which requires entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. This amends current GAAP which prohibits recognition of current and deferred income taxes for all types of intra-entity asset transfers until the asset has been sold to an outside party. ASU 2016-16 is effective for fiscal years beginning after December 15, 2017, including interim periods therein with early application permitted. Upon adoption, the Company must apply a modified retrospective transition approach through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. The Company is currently evaluating the impact of this new standard on its consolidated financial statements, as well as its planned adoption date. 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, operating results or statements of cash flows. |
Significant Accounting Polici31
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Deferred Revenue and Related Product Costs | Deferred revenue and related product costs were as follows: December 31, December 26, (In millions) Deferred revenue $ 124 $ 94 Deferred cost of sales (61 ) (41 ) Deferred income on shipments to distributors $ 63 $ 53 |
Net Loss Per Share | The following table sets forth the components of basic and diluted loss per share: 2016 2015 2014 (In millions, except per share amounts) Numerator—Net loss: Numerator for basic and diluted net loss per share $ (497 ) $ (660 ) $ (403 ) Denominator—Weighted-average shares: Denominator for basic and diluted net loss per share 835 783 768 Net loss per share: Basic $ (0.60 ) $ (0.84 ) $ (0.53 ) Diluted $ (0.60 ) $ (0.84 ) $ (0.53 ) |
Accumulated Other Comprehensive Loss | The table below summarizes the changes in accumulated other comprehensive loss by component for the years ended December 31, 2016 and December 26, 2015 : December 31, December 26, 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, net of tax effects — 1 1 (2 ) (22 ) (24 ) Reclassification adjustment for (gains) losses realized and included in net loss, net of tax effects — 2 2 — 21 21 Total other comprehensive income (loss) — 3 3 (2 ) (1 ) (3 ) Ending balance $ (1 ) $ (4 ) $ (5 ) $ (1 ) $ (7 ) $ (8 ) |
Supplemental Balance Sheet In32
Supplemental Balance Sheet Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Inventories | December 31, December 26, (In millions) Raw materials $ 11 $ 16 Work in process 564 482 Finished goods 176 180 Total inventories, net $ 751 $ 678 |
Other Current Assets | December 31, December 26, (In millions) Assets held-for-sale $ — $ 183 Other current assets 109 65 Total other current assets $ 109 $ 248 |
Property, Plant and Equipment | December 31, December 26, (In millions) Leasehold improvements $ 148 $ 146 Equipment 714 821 Construction in progress 19 17 Property, plant and equipment, gross 881 984 Accumulated depreciation and amortization (717 ) (796 ) Total property, plant and equipment, net $ 164 $ 188 |
Other Assets | December 31, December 26, (In millions) Software and technology licenses, net $ 232 $ 189 Other 47 109 Total other assets $ 279 $ 298 |
Accrued Liabilities | December 31, December 26, (In millions) Accrued compensation and benefits $ 116 $ 95 Marketing programs and advertising expenses 102 109 Software technology and licenses payable 24 50 Other accrued and current liabilities 149 218 Total accrued liabilities $ 391 $ 472 |
Other Current Liabilities | December 31, December 26, (In millions) Liabilities related to assets held-for-sale $ — $ 79 Other current liabilities 69 45 Total other current liabilities $ 69 $ 124 |
Goodwill and Acquired Intangi33
Goodwill and Acquired Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The carrying amounts of goodwill as of December 31, 2016 and December 26, 2015 were as follows: Computing and Graphics Enterprise, Embedded and Semi-Custom All Other Total (In millions) Initial goodwill due to ATI acquisition $ 1,194 $ 255 $ 745 $ 2,194 Initial goodwill due to SeaMicro acquisition 165 65 — 230 1,359 320 745 2,424 Accumulated impairment losses (1,359 ) — (745 ) (2,104 ) Balance as of December 27, 2014 — 320 — 320 Assets held-for-sale (sold to ATMP JV during 2016) (42 ) (42 ) Balance as of December 26, 2015 — 278 — 278 Adjustment to assets sold to ATMP JV — 11 — 11 Balance as of December 31, 2016 — 289 — 289 Goodwill, gross 1,359 289 745 2,424 Accumulated impairment losses $ (1,359 ) $ — $ (745 ) $ (2,104 ) |
Schedule of Amortization Expense associated with Acquisition-Related Intangible Assets | The following table summarizes amortization expense associated with acquisition-related intangible assets: 2016 2015 2014 (In millions) Developed technology $ — $ 3 $ 13 Customer relationships — — 1 Total $ — $ 3 $ 14 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2016 and December 26, 2015 are summarized below: December 31, December 26, (In millions) Cash and cash equivalents Cash $ 67 $ 409 Level 1 (1) (2) Government money market funds 50 — Total level 1 50 — Level 2 (1) (3) Commercial paper 1,147 376 Total level 2 1,147 376 Total $ 1,264 $ 785 (1) The Company did not have any transfers between Level 1 and Level 2 of the fair value hierarchy during 2016 and 2015. (2) The Company's Level 1 assets are valued using quoted prices for identical instruments in active markets. (3) The Company’s Level 2 assets 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: December 31, 2016 December 26, 2015 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value (In millions) Short-term debt $ — $ — $ 230 $ 230 Long-term debt, net (1) $ 1,434 $ 2,313 $ 2,000 $ 1,372 (1) Carrying amounts of long-term debt are net of unamortized debt issuance costs of $25 million as of December 31, 2016 and December 26, 2015 , based on the adoption of ASU 2015-03, and net of $308 million unamortized debt discount associated with the 2.125% Notes as of December 31, 2016 . |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Operations | The following table shows the amount of gain (loss) included in accumulated other comprehensive loss, the amount of gain (loss) reclassified from accumulated other comprehensive 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 consolidated statements of operations: 2016 2015 (In millions) Foreign Currency Forward Contracts - gains (losses) Contracts designated as cash flow hedging instruments Other comprehensive income (loss) $ 4 $ (1 ) Cost of sales — (4 ) Research and development (1 ) (10 ) Marketing, general and administrative — (7 ) Contracts not designated as hedging instruments Other income (expense), net $ 3 $ (3 ) |
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 consolidated balance sheets as follows: December 31, December 26, (In millions) Foreign Currency Forward Contracts - gains (losses) Contracts designated as cash flow hedging instruments $ (2 ) $ (6 ) |
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 consolidated balance sheets as follows: December 31, December 26, (In millions) Interest Rate Swap Contracts - gains (losses) Contracts designated as fair value hedging instruments $ — $ 7 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Provision (Benefit) for Income Taxes | The provision for income taxes consists of: 2016 2015 2014 (In millions) Current: U.S. Federal $ (2 ) $ (1 ) $ (1 ) U.S. State and Local — — — Foreign National and Local 21 16 6 Total 19 15 5 Deferred: U.S. Federal (1 ) — — Foreign National and Local 21 (1 ) — Total 20 (1 ) — Provision for income taxes $ 39 $ 14 $ 5 |
Schedule of Loss before Income Tax | Loss before income taxes consists of the following: 2016 2015 2014 (In millions) U.S. $ (604 ) $ (1,100 ) $ (621 ) Foreign 146 454 223 Total pre-tax loss including ATMP JV equity loss $ (458 ) $ (646 ) $ (398 ) |
Schedule of Deferred Tax Assets and Liabilities | Deferred income taxes reflect the net tax effects of tax carryovers and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the balances for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2016 and December 26, 2015 are as follows: December 31, December 26, (In millions) Deferred tax assets: Net operating loss carryovers $ 2,480 $ 2,342 Deferred distributor income 26 20 Inventory valuation 26 39 Accrued expenses not currently deductible 65 74 Acquired intangibles 213 257 Tax deductible goodwill 146 192 Federal and state tax credit carryovers 427 400 Foreign capitalized research and development costs — 60 Foreign research and development ITC credits 341 231 Discount of convertible notes 2 1 Other 83 119 Total deferred tax assets 3,809 3,735 Less: valuation allowance (3,633 ) (3,669 ) Total deferred tax assets, net of valuation allowance 176 66 Deferred tax liabilities: Undistributed foreign earnings (158 ) (33 ) Other (18 ) (23 ) Total deferred tax liabilities (176 ) (56 ) Net deferred tax assets $ — $ 10 |
Schedule of Deferred Tax Assets and Liabilities, Current and Noncurrent | The breakdown between current and non-current deferred tax assets and deferred tax liabilities as of December 31, 2016 and December 26, 2015 is as follows: December 31, December 26, (In millions) Current deferred tax assets $ — $ 8 Non-current deferred tax assets 11 48 Current deferred tax liabilities — (46 ) Non-current deferred tax liabilities $ (11 ) $ — Net deferred tax assets $ — $ 10 |
Summary of Tax Attribute Carryforwards | The following is a summary of the various tax attribute carryforwards the Company had as of December 31, 2016 . The amounts presented below include amounts related to excess stock option deductions, as discussed above. Carryforward Federal State / Provincial Expiration (In millions) U.S.-net operating loss carryovers $ 6,973 $ 348 2017 to 2036 U.S.-credit carryovers $ 398 $ 209 2017 to 2036 Canada-net operating loss carryovers $ 13 $ 13 2027 to 2028 Canada-credit carryovers $ 331 $ 39 2021 to 2036 Barbados-net operating loss carryovers $ 29 N/A 2017 Other foreign net operating loss carryovers $ 36 N/A various |
Schedule of Effective Income Tax Rate Reconciliation | The table below displays reconciliation between statutory federal income taxes and the total provision (benefit) for income taxes. 2016 2015 2014 (In millions) Statutory federal income tax benefit at 35% rate $ (160 ) $ (226 ) $ (139 ) State taxes, net of federal benefit 1 1 1 Foreign (income) expense at other than U.S. rates (1 ) 9 1 U.S. valuation allowance generated 201 232 144 Credit monetization (2 ) (2 ) (2 ) Provision for income taxes $ 39 $ 14 $ 5 |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the gross unrecognized tax benefits is as follows: 2016 2015 2014 (In millions) Balance at beginning of year $ 38 $ 28 $ 52 Increases for tax positions taken in prior years 3 11 1 Decreases for tax positions taken in prior years — (1 ) — Increases for tax positions taken in the current year 2 2 2 Decreases for settlements with taxing authorities — (2 ) (27 ) Decreases for lapsing of the statute of limitations (1 ) — — Balance at end of year $ 42 $ 38 $ 28 |
Debt and Other Obligations (Tab
Debt and Other Obligations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Debt and Other Obligations | The Company’s total debt as of December 31, 2016 and December 26, 2015 consisted of: December 31, December 26, (In millions) 6.75% Notes $ 196 $ 600 6.75% Notes, interest rate swap — 7 7.75% Notes — 450 7.50% Notes 350 475 7.00% Notes 416 500 2.125% Notes 805 — Secured Revolving Line of Credit — 230 Other 1 — Total debt (principal amount) 1,768 2,262 Unamortized debt discount associated with 2.125% Notes (308 ) — Unamortized debt issuance costs (25 ) (25 ) Total debt (net) 1,435 2,237 Less: current portion — 230 Total debt, less current portion $ 1,435 $ 2,007 |
Secured Revolving Line Of Credit, Interest Rate Description | Applicable Margin, if average availability is equal to or greater than 66.66% of the total commitment amount and the fixed charge coverage ratio for the most recently ended four-fiscal quarter period is greater than or equal to 1.25 to 1.00, is 0.25% for Base Rate Revolver Loans and 1.25% for LIBOR Revolver Loans. Otherwise, Applicable Margin is determined in accordance with the below table: Level Average Availability for Last Fiscal Month Base Rate Revolver Loans: Applicable Margin LIBOR Revolver Loans: Applicable Margin I greater than or equal to 66.66% of the Revolver Commitment 0.5% 1.5% II greater than or equal to 33.33% of the Revolver Commitment, less than 66.66% 0.75% 1.75% III less than 33.33% of the Revolver Commitment 1% 2% |
Schedule of Future Payments on Debt | As of December 31, 2016 , the Company’s future debt payment obligations for the respective fiscal years were as follows: Long Term Debt (Principal only) (In millions) 2017 $ — 2018 — 2019 196 2020 — 2021 — 2022 and thereafter 1,571 Total $ 1,767 |
Convertible Debt | The following table sets forth total interest expense recognized related to the 2.125% Notes for the year ended December 31, 2016 : December 31, (In millions) Contractual interest expense $ 5 Interest cost related to amortization of debt issuance costs — Interest cost related to amortization of the debt discount $ 6 The 2.125% Notes consisted of the following: December 31, (In millions) Principal amounts: Principal $ 805 Unamortized debt discount (1) (308 ) Unamortized debt issuance costs (14 ) Net carrying amount $ 483 Carrying amount of the equity component, net (2) $ 305 (1) Included in the consolidated balance sheets within Long-term debt, net and amortized over the remaining life of the notes using the effective interest rate method. (2) Included in the consolidated balance sheets within additional paid-in capital, net of $9 million in equity issuance costs. |
7.00% Senior Notes due 2024 | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument Redemption | Starting July 1, 2019, the Company may redeem the 7.00% Notes for cash at the following specified prices plus accrued and unpaid interest: Period Price as Beginning on July 1, 2019 through June 30, 2020 103.500 % Beginning on July 1, 2020 through June 30, 2021 102.333 % Beginning on July 1, 2021 through June 30, 2022 101.167 % On July 1, 2022 and thereafter 100.000 % |
Other Income (expense), Net (Ta
Other Income (expense), Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Statement Related Disclosures [Abstract] | |
Scheule of Other Income (expense), Net | The following table summarizes the components of other income (expense), net: 2016 2015 2014 (In millions) Interest income $ 2 $ — $ — Gain on sale of 85% ATMP JV 146 — — Loss on debt redemption (68 ) — (61 ) Other — (5 ) (5 ) Other income (expense), net $ 80 $ (5 ) $ (66 ) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following table provides a summary of net revenue and operating income (loss) by segment for 2016 , 2015 and 2014 . The results prior to July 1, 2014 have been recast to reflect the Company’s new reportable segments. 2016 2015 2014 (In millions) Net revenue: Computing and Graphics $ 1,967 $ 1,805 $ 3,132 Enterprise, Embedded and Semi-Custom 2,305 2,186 2,374 Total net revenue $ 4,272 $ 3,991 $ 5,506 Operating income (loss): Computing and Graphics $ (238 ) $ (502 ) $ (76 ) Enterprise, Embedded and Semi-Custom 283 215 399 All Other (417 ) (194 ) (478 ) Total operating loss $ (372 ) $ (481 ) $ (155 ) The following table provides major items included in All Other category: 2016 2015 2014 (In millions) Operating loss: Stock-based compensation expense $ (86 ) $ (63 ) $ (81 ) Restructuring and other special charges, net 10 (129 ) (71 ) Amortization of acquired intangible assets — (3 ) (14 ) Charge related to the Sixth Amendment to the WSA with GF (340 ) — — Goodwill impairment — — (233 ) Lower of cost or market inventory adjustment — — (58 ) Workforce rebalancing severance charges — — (14 ) Other (1 ) 1 (7 ) Total operating loss $ (417 ) $ (194 ) $ (478 ) |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area | The following table summarizes sales to external customers by country, which is based on the billing location of the customer: 2016 2015 2014 (In millions) United States $ 923 $ 984 $ 1,030 Europe 155 168 325 China 1,108 1,145 2,324 Singapore 571 356 371 Japan 1,443 1,254 1,324 Other countries 72 84 132 Total sales to external customers $ 4,272 $ 3,991 $ 5,506 |
Schedule of Revenue by Major Customers by Reporting Segments | The following table summarizes sales to major customers that accounted for at least 10% of the Company’s consolidated net revenue for the respective years: 2016 2015 2014 Customer A 33 % 31 % 23 % Customer B 16 % 18 % 13 % Customer C 10 % 8 % 13 % |
Schedule of Long-lived Assets in Individual Foreign Countries by Geographic Area | The following table summarizes long-lived assets by geographic areas: 2016 2015 (In millions) United States $ 104 $ 123 Malaysia 9 11 China 7 5 Singapore 24 25 Other countries 20 24 Total long-lived assets $ 164 $ 188 |
Common Stock and Stockholders39
Common Stock and Stockholders’ Equity (Deficit) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | Stock-based compensation expense related to employee stock options and restricted stock units, including PRSUs, was allocated in the consolidated statements of operations as follows: 2016 2015 2014 (In millions) Cost of sales $ 2 $ 3 $ 3 Research and development 49 36 44 Marketing, general, and administrative 35 24 34 Total stock-based compensation expense, net of tax of $0 $ 86 $ 63 $ 81 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The weighted-average estimated fair value of employee stock options granted for the years ended December 31, 2016 , December 26, 2015 and December 27, 2014 was $3.10 , $1.02 and $1.46 per share, respectively, using the following weighted-average assumptions: 2016 2015 2014 Expected volatility 62.33 % 60.14 % 53.36 % Risk-free interest rate 1.02 % 1.29 % 1.15 % Expected dividends — % — % — % Expected life (in years) 3.98 3.91 3.86 |
Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes stock option activity, including market-based stock options, and related information: 2016 2015 2014 Number of Shares Weighted- Average Exercise Price Number of Shares Weighted- Average Exercise Price Number of Shares Weighted- Average Exercise Price (In millions, except share price) Stock options: Outstanding at beginning of year 32 $ 4.44 36 $ 4.78 35 $ 5.08 Granted 2 $ 6.98 8 $ 2.12 8 $ 3.73 Canceled (9 ) $ 5.53 (9 ) $ 4.91 (4 ) $ 7.64 Exercised (5 ) $ 4.75 (3 ) $ 1.61 (3 ) $ 1.47 Outstanding at end of year 20 $ 4.15 32 $ 4.44 36 $ 4.78 Exercisable at end of year 13 $ 4.32 21 $ 5.34 23 $ 5.28 |
Schedule of Share-based Compensation, Restricted Stock Units, Activity | The summary of the changes in RSUs outstanding, including the PRSUs, during 2016 , 2015 and 2014 is presented below: 2016 2015 2014 Number of Shares Weighted- Average Fair Value Number of Shares Weighted- Average Fair Value Number of Shares Weighted- Average Fair Value (In millions except share price) Unvested balance at beginning of period 51 $ 2.61 43 $ 4.05 40 $ 4.52 Granted 29 $ 4.72 38 $ 2.03 23 $ 3.89 Forfeited (5 ) $ 2.95 (15 ) $ 3.71 (5 ) $ 4.48 Vested (23 ) $ 2.56 (15 ) $ 4.13 (15 ) $ 4.90 Unvested balance at end of period 52 $ 3.73 51 $ 2.61 43 $ 4.05 |
Schedule of Nonvested Performance-based Units Activity | The summary of the changes in the PRSUs during 2016 , 2015 and 2014 is presented below. 2016 2015 2014 (Shares in millions) Unvested shares at beginning of period 7 9 5 Granted 5 5 5 Forfeited (2 ) (7 ) (1 ) Vested (5 ) — — Unvested shares at end of period 5 7 9 |
Commitments and Guarantees (Tab
Commitments and Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | As of December 31, 2016 , the Company’s future non-cancelable operating lease commitments, including those for facilities vacated in connection with restructuring activities, were as follows: Year Operating leases (In millions) 2017 $ 49 2018 51 2019 46 2020 43 2021 64 2022 and thereafter 135 Total non-cancelable operating lease commitments $ 388 |
Schedule of Future Unconditional Purchase Obligations | Future unconditional purchase obligations as of December 31, 2016 were as follows: Year Unconditional purchase obligations (In millions) 2017 $ 391 2018 86 2019 51 2020 9 2021 1 2022 and thereafter — Total unconditional purchase commitments $ 538 |
Product Warranty Disclosure | Changes in the Company’s estimated liability for product warranty during the years ended December 31, 2016 and December 26, 2015 are as follows: December 31, December 26, (In millions) Beginning balance $ 15 $ 19 New warranties issued during the period 21 28 Settlements during the period (19 ) (26 ) Changes in liability for pre-existing warranties during the period, including expirations (5 ) (6 ) Ending balance $ 12 $ 15 |
Restructuring and Other Speci41
Restructuring and Other Special Charges, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Activities and Related Liabilities | The following table provides a summary of the restructuring activities during 2016 and the related liabilities recorded in Other current liabilities and Other long-term liabilities on the Company’s consolidated balance sheets as of December 31, 2016 : Severance and related benefits Other exit related costs Total (In millions) Balance as of December 26, 2015 $ 5 $ 15 $ 20 Charges (reversals), net (2 ) (7 ) (9 ) Cash payments (1 ) (6 ) (7 ) Balance as of December 31, 2016 $ 2 $ 2 $ 4 The following table provides a summary of the restructuring activities during 2016 and the related liabilities recorded in Other current liabilities and Other long-term liabilities on the Company’s consolidated balance sheets as of December 31, 2016 : Severance Other exit Total (In millions) Balance as of December 26, 2015 $ 14 $ — $ 14 Charges (reversals), net (1 ) — (1 ) Cash payments (10 ) — (10 ) Balance as of December 31, 2016 $ 3 $ — $ 3 |
Supplementary Financial Infor42
Supplementary Financial Information (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | |
Supplementary Financial Information | (In millions, except per share amounts) 2016 2015 Dec. 31 Sep. 24 Jun. 25 Mar. 26 Dec. 26 Sep. 26 Jun. 27 Mar. 28 Net revenue $ 1,106 $ 1,307 $ 1,027 $ 832 $ 958 $ 1,061 $ 942 $ 1,030 Cost of sales (1) 755 1,248 708 563 675 822 710 704 Gross margin 351 59 319 269 283 239 232 326 Research and development 264 259 243 242 229 241 235 242 Marketing, general and administrative 121 117 117 105 109 108 134 131 Amortization of acquired intangible assets — — — — — — — 3 Restructuring and other special charges (reversals), net — — (7 ) (3 ) (6 ) 48 — 87 Licensing gain (31 ) (24 ) (26 ) (7 ) — — — — Operating income (loss) (3 ) (293 ) (8 ) (68 ) (49 ) (158 ) (137 ) (137 ) Interest expense (34 ) (41 ) (41 ) (40 ) (41 ) (39 ) (40 ) (40 ) Other income (expense), net (2) (7 ) (63 ) 150 — (2 ) — (3 ) — Income (loss) before income taxes (44 ) (397 ) 101 (108 ) (92 ) (197 ) (180 ) (177 ) Provision for income taxes 5 4 29 1 10 — 1 3 Equity in income (loss) of ATMP JV (2 ) (5 ) (3 ) — — — — — Net income (loss) (51 ) (406 ) 69 (109 ) (102 ) (197 ) (181 ) (180 ) Net income (loss) per share Basic $ (0.06 ) $ (0.50 ) $ 0.09 $ (0.14 ) $ (0.13 ) $ (0.25 ) $ (0.23 ) $ (0.23 ) Diluted $ (0.06 ) $ (0.50 ) $ 0.08 $ (0.14 ) $ (0.13 ) $ (0.25 ) $ (0.23 ) $ (0.23 ) Shares used in per share calculation Basic 931 815 794 793 791 785 778 777 Diluted 931 815 821 793 791 785 778 777 (1) During the third quarter of 2016, the Company recorded a charge of $340 million , consisting of the $100 million payment under the Sixth Amendment and the $240 million value of the warrant under the Warrant Agreement issued in consideration of the Sixth Amendment. During 2015, the Company recorded a technology node transition charge of $33 million in the second quarter and an inventory write-down of $65 million in the third quarter. (2) The Company recorded a pre-tax gain of $150 million on the sale of its 85% equity interest in ATMP JV during the second quarter of 2016. During the third quarter of 2016, as a result of certain purchase price adjustments, the Company recognized a charge of $4 million . |
Significant Accounting Polici43
Significant Accounting Policies (Details) (Narrative) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | Mar. 26, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Assets held-for-sale | $ 0 | $ 183 | ||
Liabilities related to assets held-for-sale | $ 0 | 79 | ||
Product warranty period | 1 year | |||
Limited product warranty period | 3 years | |||
Marketing, communications and advertising expenses | $ 131 | 154 | $ 194 | |
Net deferred tax assets | 0 | (10) | ||
Current deferred tax liabilities | 0 | (46) | ||
Debt issuance cost, net | 25 | 25 | ||
Valuation allowance | $ (3,633) | (3,669) | ||
Equipment | Maximum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Property, plant and equipment, useful life | 6 years | |||
Equipment | Minimum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Property, plant and equipment, useful life | 2 years | |||
Building and Building Improvements | Maximum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Property, plant and equipment, useful life | 40 years | |||
Accounting Standards Update 2015-17 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net deferred tax assets | $ (31) | |||
Deferred tax assets, net, current | 8 | |||
Current deferred tax liabilities | 6 | |||
Accounting Standards Update 2016-09 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net deferred tax assets | $ 95 | |||
Valuation allowance | 95 | |||
Accounting Standards Update 2016-09 | Retained Earnings | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative effect of new accounting principle | $ 95 | |||
Long-term Debt | Accounting Standards Update 2015-03 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Debt issuance cost, net | 25 | 23 | ||
Other Assets | Accounting Standards Update 2015-03 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Debt issuance cost, net | $ (25) | $ (23) |
Significant Accounting Polici44
Significant Accounting Policies (Details) (Deferred Revenue and Related Product Costs) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 26, 2015 |
Accounting Policies [Abstract] | ||
Deferred revenue | $ 124 | $ 94 |
Deferred cost of sales | (61) | (41) |
Deferred income on shipments to distributors | $ 63 | $ 53 |
Significant Accounting Polici45
Significant Accounting Policies (Details) (Net Loss Per Share) - USD ($) $ / shares in Units, $ in Millions | Mar. 07, 2014 | Dec. 31, 2016 | Sep. 24, 2016 | Jun. 25, 2016 | Mar. 26, 2016 | Dec. 26, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 |
Numerator—Net loss: | ||||||||||||
Net loss | $ (497) | $ (660) | $ (403) | |||||||||
Denominator—Weighted-average shares: | ||||||||||||
Denominator for basic and diluted net loss per share (shares) | 835,000,000 | 783,000,000 | 768,000,000 | |||||||||
Net loss per share | ||||||||||||
Basic (USD per share) | $ (0.06) | $ (0.50) | $ 0.09 | $ (0.14) | $ (0.13) | $ (0.25) | $ (0.23) | $ (0.23) | $ (0.60) | $ (0.84) | $ (0.53) | |
Diluted (USD per share) | $ (0.06) | $ (0.50) | $ 0.08 | $ (0.14) | $ (0.13) | $ (0.25) | $ (0.23) | $ (0.23) | $ (0.60) | $ (0.84) | $ (0.53) | |
Stock Compensation Plan | ||||||||||||
Net loss per share | ||||||||||||
Antidilutive securities excluded from computation of earnings per share | 231,000,000 | 52,000,000 | 48,000,000 | |||||||||
2.125% Convertible Senior Notes Due 2026 | ||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||||
Interest rate, stated percentage | 2.125% | 2.125% | ||||||||||
WCH Warrant | ||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||||
Common stock issued by exercise of warrants (shares) | 35,000,000 | |||||||||||
Shares issuable by warrants (shares) | 35,000,000 | |||||||||||
Warrant exercise price (USD per share) | $ 0.01 | |||||||||||
Warrants outstanding (shares) | 0 | 0 |
Significant Accounting Polici46
Significant Accounting Policies (Details) (Accumulated Other Comprehensive Income) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ (412) | $ 187 | $ 544 |
Unrealized gains (losses) arising during the period, net of tax effects | 1 | (24) | |
Reclassification adjustment for (gains) losses realized and included in net loss, net of tax effects | 2 | 21 | |
Total other comprehensive income (loss) | 3 | (3) | (3) |
Ending balance | 416 | (412) | 187 |
Unrealized gains (losses) on available-for-sale securities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (1) | 1 | |
Unrealized gains (losses) arising during the period, net of tax effects | 0 | (2) | |
Reclassification adjustment for (gains) losses realized and included in net loss, net of tax effects | 0 | 0 | |
Total other comprehensive income (loss) | 0 | (2) | |
Ending balance | (1) | (1) | 1 |
Unrealized gains (losses) on cash flow hedges | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (7) | (6) | |
Unrealized gains (losses) arising during the period, net of tax effects | 1 | (22) | |
Reclassification adjustment for (gains) losses realized and included in net loss, net of tax effects | 2 | 21 | |
Total other comprehensive income (loss) | 3 | (1) | |
Ending balance | (4) | (7) | (6) |
Accumulated other comprehensive loss | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (8) | (5) | (2) |
Total other comprehensive income (loss) | 3 | (3) | (3) |
Ending balance | $ (5) | $ (8) | $ (5) |
GLOBALFOUNDRIES (Details)
GLOBALFOUNDRIES (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | Dec. 30, 2016 | Aug. 30, 2016 | Mar. 07, 2014 | |
Related Party Transaction [Line Items] | |||||||
Payable to GLOBALFOUNDRIES | $ 255 | $ 255 | $ 245 | ||||
Share price (USD per share) | $ 6 | $ 6 | $ 11.34 | ||||
WCH Warrant | |||||||
Related Party Transaction [Line Items] | |||||||
Warrant exercise price (USD per share) | $ 0.01 | ||||||
Affiliated Entity | |||||||
Related Party Transaction [Line Items] | |||||||
Charge related to the Sixth Amendment to the WSA with GF | $ 340 | ||||||
Affiliated Entity | Globalfoundries | |||||||
Related Party Transaction [Line Items] | |||||||
Purchases from related party | $ 700 | $ 900 | $ 1,000 | ||||
Affiliated Entity | WCH Warrant | Mubadala Development Company PJSC | |||||||
Related Party Transaction [Line Items] | |||||||
Ownership percentage, limitation on noncontrolling interest | 19.99% | 19.99% | |||||
Limited Waiver | Affiliated Entity | Globalfoundries | |||||||
Related Party Transaction [Line Items] | |||||||
Payable to GLOBALFOUNDRIES | $ 100 | $ 100 | |||||
Related party transaction payments | $ 25 | ||||||
Charge related to the Sixth Amendment to the WSA with GF | 100 | ||||||
WCH | Affiliated Entity | |||||||
Related Party Transaction [Line Items] | |||||||
Charge related to the Sixth Amendment to the WSA with GF | $ 240 | ||||||
WCH | Affiliated Entity | WCH Warrant | |||||||
Related Party Transaction [Line Items] | |||||||
Total shares called by warrants | 75 | ||||||
Warrant exercise price (USD per share) | $ 5.98 | ||||||
Maximum warrants exercisable within one year | 50 | 50 | |||||
Warrants Not Settle able in Cash | WCH | Affiliated Entity | |||||||
Related Party Transaction [Line Items] | |||||||
Implied volatility | 47.10% | ||||||
Risk-free rate | 0.99% | ||||||
Warrant term | 3 years 6 months | ||||||
Share price (USD per share) | $ 7.49 | ||||||
Exercise price (USD per share) | $ 5.98 | $ 5.98 |
Equity Interest Purchase Agre48
Equity Interest Purchase Agreement (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016USD ($)joint_venture | Sep. 24, 2016USD ($) | Jun. 25, 2016USD ($) | Mar. 26, 2016USD ($) | Dec. 26, 2015USD ($) | Sep. 26, 2015USD ($) | Jun. 27, 2015USD ($) | Mar. 28, 2015USD ($) | Dec. 31, 2016USD ($)joint_venture | Dec. 26, 2015USD ($) | Dec. 27, 2014USD ($) | Apr. 29, 2016 | |
Held For Sale | ||||||||||||
Number of joint ventures | joint_venture | 2 | 2 | ||||||||||
Net Proceeds from sale of equity interests in ATMP JV | $ 342 | $ 0 | $ 0 | |||||||||
Net gain on sale of equity interests | 146 | 0 | 0 | |||||||||
Investment in ATMP JV | $ 59 | $ 0 | 59 | 0 | ||||||||
Payable to ATMP JV | 128 | 0 | 128 | 0 | ||||||||
Equity in income (loss) of ATMP JV | (2) | $ (5) | $ (3) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | (10) | $ 0 | $ 0 | |
TFME’s Affiliates | ||||||||||||
Held For Sale | ||||||||||||
Equity interest in each JV | 85.00% | |||||||||||
Joint Venture | ||||||||||||
Held For Sale | ||||||||||||
Net gain on sale of equity interests | 146 | |||||||||||
Gain on sale of equity interest in ATMP JV | 11 | |||||||||||
Joint Venture | TFME’s Affiliates | ||||||||||||
Held For Sale | ||||||||||||
Equity interest in each JV | 85.00% | |||||||||||
Joint Venture | Advanced Micro Devices | ||||||||||||
Held For Sale | ||||||||||||
Equity interest in each JV | 15.00% | |||||||||||
Joint Venture | ATMP JV | ||||||||||||
Held For Sale | ||||||||||||
Purchases from related party | 265 | |||||||||||
Payable to ATMP JV | $ 128 | 128 | ||||||||||
Equity in income (loss) of ATMP JV | $ (10) |
Equity Joint Venture - Intell49
Equity Joint Venture - Intellectual Property Licensing Agreement (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 24, 2016 | Jun. 25, 2016 | Mar. 26, 2016 | Dec. 26, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Schedule of Equity Method Investments [Line Items] | |||||||||||
Equity method investment | $ 59,000,000 | $ 0 | $ 59,000,000 | $ 0 | |||||||
Estimated license fees earned over time | 293,000,000 | 293,000,000 | |||||||||
Operating income related to licensed IP | 31,000,000 | $ 24,000,000 | $ 26,000,000 | $ 7,000,000 | $ 0 | $ 0 | $ 0 | $ 0 | 88,000,000 | $ 0 | $ 0 |
THATIC JV [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Equity method investment | $ 0 | $ 0 |
Supplemental Balance Sheet In50
Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | ||
Inventories | ||||
Raw materials | $ 11 | $ 16 | ||
Work in process | 564 | 482 | ||
Finished goods | 176 | 180 | ||
Total inventories, net | 751 | 678 | ||
Other current assets | ||||
Assets held-for-sale | 0 | 183 | ||
Other current assets | 109 | 65 | ||
Total other current assets | [1] | 109 | 248 | |
Property, plant and equipment | ||||
Leasehold improvements | 148 | 146 | ||
Equipment | 714 | 821 | ||
Construction in progress | 19 | 17 | ||
Property, plant and equipment, gross | 881 | 984 | ||
Accumulated depreciation and amortization | (717) | (796) | ||
Total property, plant and equipment, net | 164 | 188 | ||
Depreciation | 71 | 94 | $ 115 | |
Other assets | ||||
Software and technology licenses, net | 232 | 189 | ||
Other | 47 | 109 | ||
Total other assets | [1],[2] | 279 | 298 | |
Accrued liabilities | ||||
Accrued compensation and benefits | 116 | 95 | ||
Marketing programs and advertising expenses | 102 | 109 | ||
Software technology and licenses payable | 24 | 50 | ||
Other accrued and current liabilities | 149 | 218 | ||
Total accrued liabilities | [1] | 391 | 472 | |
Other current liabilities | ||||
Liabilities related to assets held-for-sale | 0 | 79 | ||
Other current liabilities | 69 | 45 | ||
Total other current liabilities | $ 69 | $ 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. |
Goodwill and Acquired Intangi51
Goodwill and Acquired Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 24, 2016 | Jun. 25, 2016 | Mar. 26, 2016 | Dec. 26, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Goodwill [Line Items] | |||||||||||
Initial goodwill | $ 2,424 | $ 2,424 | $ 2,424 | ||||||||
Accumulated impairment loss | (2,104) | (2,104) | (2,104) | ||||||||
Assets held-for-sale | 11 | $ (42) | |||||||||
Goodwill | 289 | $ 278 | 289 | 278 | 320 | ||||||
Goodwill, related to sale of business | 31 | ||||||||||
Goodwill impairment | 0 | 0 | (233) | ||||||||
Amortization of acquired intangible assets | 0 | $ 0 | $ 0 | $ 0 | 0 | $ 0 | $ 0 | $ 3 | 0 | 3 | 14 |
Restructuring and other special charges, net | 0 | $ 0 | $ (7) | $ (3) | (6) | $ 48 | $ 0 | $ 87 | (10) | 129 | 71 |
Developed Technology | |||||||||||
Goodwill [Line Items] | |||||||||||
Amortization of acquired intangible assets | 0 | 3 | 13 | ||||||||
Customer Relationships | |||||||||||
Goodwill [Line Items] | |||||||||||
Amortization of acquired intangible assets | 0 | 0 | 1 | ||||||||
Dense Server Systems Business Exit | |||||||||||
Goodwill [Line Items] | |||||||||||
Impairment charge | (62) | ||||||||||
Restructuring and other special charges, net | 76 | ||||||||||
Computing and Graphics | |||||||||||
Goodwill [Line Items] | |||||||||||
Initial goodwill | 1,359 | 1,359 | 1,359 | ||||||||
Accumulated impairment loss | (1,359) | (1,359) | (1,359) | ||||||||
Assets held-for-sale | 0 | ||||||||||
Goodwill | 0 | 0 | 0 | 0 | 0 | ||||||
Enterprise, Embedded and Semi-Custom | |||||||||||
Goodwill [Line Items] | |||||||||||
Initial goodwill | 289 | 289 | 320 | ||||||||
Accumulated impairment loss | 0 | 0 | 0 | ||||||||
Assets held-for-sale | 11 | (42) | |||||||||
Goodwill | 289 | 278 | 289 | 278 | 320 | ||||||
All Other | |||||||||||
Goodwill [Line Items] | |||||||||||
Initial goodwill | 745 | 745 | 745 | ||||||||
Accumulated impairment loss | (745) | (745) | (745) | ||||||||
Assets held-for-sale | 0 | ||||||||||
Goodwill | $ 0 | $ 0 | 0 | 0 | 0 | ||||||
Goodwill impairment | 0 | 0 | (233) | ||||||||
Amortization of acquired intangible assets | $ 0 | $ 3 | 14 | ||||||||
Computing and Graphics Reporting Unit | |||||||||||
Goodwill [Line Items] | |||||||||||
Goodwill impairment | (233) | ||||||||||
SeaMicro Acquisition | |||||||||||
Goodwill [Line Items] | |||||||||||
Initial goodwill | 230 | ||||||||||
SeaMicro Acquisition | Computing and Graphics | |||||||||||
Goodwill [Line Items] | |||||||||||
Initial goodwill | 165 | ||||||||||
SeaMicro Acquisition | Enterprise, Embedded and Semi-Custom | |||||||||||
Goodwill [Line Items] | |||||||||||
Initial goodwill | 65 | ||||||||||
SeaMicro Acquisition | All Other | |||||||||||
Goodwill [Line Items] | |||||||||||
Initial goodwill | 0 | ||||||||||
ATI Acquisition | |||||||||||
Goodwill [Line Items] | |||||||||||
Initial goodwill | 2,194 | ||||||||||
ATI Acquisition | Computing and Graphics | |||||||||||
Goodwill [Line Items] | |||||||||||
Initial goodwill | 1,194 | ||||||||||
ATI Acquisition | Enterprise, Embedded and Semi-Custom | |||||||||||
Goodwill [Line Items] | |||||||||||
Initial goodwill | 255 | ||||||||||
ATI Acquisition | All Other | |||||||||||
Goodwill [Line Items] | |||||||||||
Initial goodwill | $ 745 |
Financial Instruments (Details)
Financial Instruments (Details) (Narrative) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Sep. 27, 2014 | |
Schedule of Investments [Line Items] | |||
Derivative, notional amount | $ 250 | ||
Deferred (Gain) Loss on Discontinuation of Fair Value Hedge | $ 1 | ||
Reclassification out of Accumulated Other Comprehensive Income | |||
Schedule of Investments [Line Items] | |||
Other Income | 2 | ||
Fair value, inputs, level 1 | Money Market Funds | |||
Schedule of Investments [Line Items] | |||
Cash equivalents pledged as collateral | 2 | $ 1 | |
Fair value, inputs, level 1 | Mutual Funds | |||
Schedule of Investments [Line Items] | |||
Restricted investments | $ 15 | $ 15 | |
6.75% Senior Notes due 2019 | |||
Schedule of Investments [Line Items] | |||
Interest rate, stated percentage | 6.75% |
Financial Instruments (Detail53
Financial Instruments (Details) (Cash and Cash Equivalents) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 26, 2015 |
Schedule of Investments [Line Items] | ||
Cash and cash equivalents, at fair value | $ 1,264 | $ 785 |
Fair value, inputs, level 1 | ||
Schedule of Investments [Line Items] | ||
Cash and cash equivalents, at fair value | 50 | 0 |
Fair Value, Inputs, Level 2 | ||
Schedule of Investments [Line Items] | ||
Cash and cash equivalents, at fair value | 1,147 | 376 |
Cash | ||
Schedule of Investments [Line Items] | ||
Cash and cash equivalents, at fair value | 67 | 409 |
Money market funds | Fair value, inputs, level 1 | ||
Schedule of Investments [Line Items] | ||
Cash and cash equivalents, at fair value | 50 | 0 |
Commercial paper | Fair Value, Inputs, Level 2 | ||
Schedule of Investments [Line Items] | ||
Cash and cash equivalents, at fair value | $ 1,147 | $ 376 |
Financial Instruments (Detail54
Financial Instruments (Details) (Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments not Recorded at Fair Value) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 26, 2015 |
Schedule of Investments [Line Items] | ||
Debt issuance cost, net | $ 25 | $ 25 |
Unamortized discount | (308) | 0 |
2.125% Convertible Senior Notes Due 2026 | ||
Schedule of Investments [Line Items] | ||
Unamortized discount | $ (308) | |
Interest rate, stated percentage | 2.125% | |
Carrying Amount | ||
Schedule of Investments [Line Items] | ||
Short-term debt (excluding capital leases), at estimated fair value | $ 0 | 230 |
Long-term debt (excluding capital leases), at estimated fair value | 1,434 | 2,000 |
Estimated Fair Value | Fair Value, Inputs, Level 2 | ||
Schedule of Investments [Line Items] | ||
Short-term debt (excluding capital leases), at estimated fair value | 0 | 230 |
Long-term debt (excluding capital leases), at estimated fair value | $ 2,313 | $ 1,372 |
Financial Instruments (Detail55
Financial Instruments (Details) (Gain (Loss) from Hedging Transactions) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net [Abstract] | |||
Total change in unrealized gains (losses) on cash flow hedges, net of tax | $ 3 | $ (1) | $ (3) |
Foreign Currency Forward Contracts | Contracts Designated as Cash Flow Hedging Instruments | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net [Abstract] | |||
Total change in unrealized gains (losses) on cash flow hedges, net of tax | 4 | (1) | |
Foreign Currency Forward Contracts | Cost of Sales | Contracts Designated as Cash Flow Hedging Instruments | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | (4) | |
Foreign Currency Forward Contracts | Research and Development Expense | Contracts Designated as Cash Flow Hedging Instruments | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (1) | (10) | |
Foreign Currency Forward Contracts | Selling, General and Administrative Expenses | Contracts Designated as Cash Flow Hedging Instruments | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | (7) | |
Foreign Currency Forward Contracts | Other Income (Expense) | Contracts not Designated as Hedging Instruments | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | |||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ 3 | $ (3) |
Financial Instruments (Detail56
Financial Instruments (Details) (Summary of Derivative Instruments) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 26, 2015 | Sep. 27, 2014 |
Derivative [Line Items] | |||
Derivative, hedging instruments, net | $ 0 | $ 7 | |
Derivative, notional amount | $ 250 | ||
Foreign Currency Forward Contracts | |||
Derivative [Line Items] | |||
Derivative, notional amount | 138 | 156 | |
Fair Value, Inputs, Level 2 | Foreign Currency Forward Contracts | Contracts Designated as Cash Flow Hedging Instruments | |||
Derivative [Line Items] | |||
Contracts designated as cash flow hedging instruments | (2) | (6) | |
Fair Value, Inputs, Level 2 | Interest Rate Swap Contracts | Contracts Designated as Fair Value Hedging Instruments | |||
Derivative [Line Items] | |||
Derivative, hedging instruments, net | $ 0 | $ 7 |
Concentrations of Credit and 57
Concentrations of Credit and Operation Risk (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 26, 2015 | |
Concentration Risk [Line Items] | ||
Limitation of investments, combined capital, surplus and undistributed profits of (not less than) | $ 200 | |
Foreign currency contracts, liabilities, at fair value | $ 2 | |
Accounts Receivable | Top Customer One | ||
Concentration Risk [Line Items] | ||
Percentage, by major customer | 12.00% | 26.00% |
Accounts Receivable | Top Customer Two | ||
Concentration Risk [Line Items] | ||
Percentage, by major customer | 11.00% | 17.00% |
Accounts Receivable | Top Customer Three | ||
Concentration Risk [Line Items] | ||
Percentage, by major customer | 10.00% | 11.00% |
Income Taxes (Details) (Narrati
Income Taxes (Details) (Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2016 | Sep. 24, 2016 | Jun. 25, 2016 | Mar. 26, 2016 | Dec. 26, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | Apr. 29, 2016 | |
Income Tax Contingency [Line Items] | |||||||||||||
Increase (decrease) in valuation allowance | $ (36,000,000) | $ 174,000,000 | $ 120,000,000 | ||||||||||
Deferred tax assets related to excess stock option deduction | $ 95,000,000 | $ 118,000,000 | 95,000,000 | 118,000,000 | |||||||||
Cumulative undistributed earnings of foreign subsidiaries | 37,000,000 | 307,000,000 | 37,000,000 | 307,000,000 | |||||||||
Cumulative undistributed earnings, additional income taxes | 13,000,000 | 13,000,000 | |||||||||||
Provision for income taxes | 5,000,000 | $ 4,000,000 | $ 29,000,000 | $ 1,000,000 | 10,000,000 | $ 0 | $ 1,000,000 | $ 3,000,000 | 39,000,000 | 14,000,000 | 5,000,000 | ||
Income tax holiday, aggregate dollar amount | 0 | 0 | $ 2,000,000 | ||||||||||
Income tax holiday, approximate income tax benefit per share | less than $.01 | ||||||||||||
Unrecognized tax benefits that would impact effective tax rate | 4,000,000 | 4,000,000 | 4,000,000 | 4,000,000 | $ 3,000,000 | ||||||||
Unrecognized tax benefits, income tax penalties and interest accrued | 0 | 0 | 0 | 0 | 0 | ||||||||
Unrecognized Tax Benefits | 1,000,000 | 0 | $ 0 | ||||||||||
Federal | Subject to Limitations | |||||||||||||
Income Tax Contingency [Line Items] | |||||||||||||
Operating loss carryforwards, amount | $ 10,000,000 | 10,000,000 | |||||||||||
For Certain Subsidiaries in China | |||||||||||||
Income Tax Contingency [Line Items] | |||||||||||||
Partially recognized undistributed earnings | 56,000,000 | ||||||||||||
Recognized undistributed earnings, future withholding tax | 6,000,000 | ||||||||||||
Future benefit of tax losses | 7,000,000 | ||||||||||||
Net income tax provision effect of equity interest purchase agreement | (1,000,000) | ||||||||||||
For Subsidiaries in Italy | |||||||||||||
Income Tax Contingency [Line Items] | |||||||||||||
Income tax examination settlement, taxes and penalties | $ 11,000,000 | 11,000,000 | |||||||||||
Income tax examination settlement, interest expense | $ 2,000,000 | ||||||||||||
Scenario, Forecast | |||||||||||||
Income Tax Contingency [Line Items] | |||||||||||||
Unrecognized Tax Benefits | $ 1,000,000 | ||||||||||||
TFME’s Affiliates | |||||||||||||
Income Tax Contingency [Line Items] | |||||||||||||
Equity interest agreed to be sold pursuant to equity interest purchase agreement | 85.00% | ||||||||||||
China and Malaysia subsidiaries | |||||||||||||
Income Tax Contingency [Line Items] | |||||||||||||
Foreign earnings, dividends | 198,000,000 | ||||||||||||
Tax effect of total recognition of distributed and undistributed earnings | 281,000,000 | ||||||||||||
Partially recognized undistributed earnings | 83,000,000 | ||||||||||||
BERMUDA | |||||||||||||
Income Tax Contingency [Line Items] | |||||||||||||
Partially recognized undistributed earnings | $ 127,000,000 | ||||||||||||
Joint Venture | TFME’s Affiliates | |||||||||||||
Income Tax Contingency [Line Items] | |||||||||||||
Equity interest agreed to be sold pursuant to equity interest purchase agreement | 85.00% |
Income Taxes (Details) (Schedul
Income Taxes (Details) (Schedule of Provision (Benefit) for Income Taxes) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 24, 2016 | Jun. 25, 2016 | Mar. 26, 2016 | Dec. 26, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Current: | |||||||||||
U.S. Federal | $ (2) | $ (1) | $ (1) | ||||||||
U.S. State and Local | 0 | 0 | 0 | ||||||||
Foreign National and Local | 21 | 16 | 6 | ||||||||
Total | 19 | 15 | 5 | ||||||||
Deferred: | |||||||||||
U.S. Federal | (1) | 0 | 0 | ||||||||
Foreign National and Local | 21 | (1) | 0 | ||||||||
Total | 20 | (1) | 0 | ||||||||
Provision for income taxes | $ 5 | $ 4 | $ 29 | $ 1 | $ 10 | $ 0 | $ 1 | $ 3 | $ 39 | $ 14 | $ 5 |
Income Taxes (Details) (Sched60
Income Taxes (Details) (Schedule of Income (Loss) before Income Tax) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 24, 2016 | Jun. 25, 2016 | Mar. 26, 2016 | Dec. 26, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Income Tax Disclosure [Abstract] | |||||||||||
U.S. | $ (604) | $ (1,100) | $ (621) | ||||||||
Foreign | 146 | 454 | 223 | ||||||||
Income (loss) before income taxes | $ (44) | $ (397) | $ 101 | $ (108) | $ (92) | $ (197) | $ (180) | $ (177) | $ (458) | $ (646) | $ (398) |
Income Taxes (Details) (Sched61
Income Taxes (Details) (Schedule of Deferred Tax Assets and Liabilities) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 26, 2015 |
Deferred tax assets: | ||
Net operating loss carryovers | $ 2,480 | $ 2,342 |
Deferred distributor income | 26 | 20 |
Inventory valuation | 26 | 39 |
Accrued expenses not currently deductible | 65 | 74 |
Acquired intangibles | 213 | 257 |
Tax deductible goodwill | 146 | 192 |
Federal and state tax credit carryovers | 427 | 400 |
Foreign capitalized research and development costs | 0 | 60 |
Foreign research and development ITC credits | 341 | 231 |
Discount of convertible notes | 2 | 1 |
Other | 83 | 119 |
Total deferred tax assets | 3,809 | 3,735 |
Valuation allowance | (3,633) | (3,669) |
Total deferred tax assets, net of valuation allowance | 176 | 66 |
Deferred tax liabilities: | ||
Undistributed foreign earnings | (158) | (33) |
Other | (18) | (23) |
Total deferred tax liabilities | (176) | (56) |
Net deferred tax assets | $ 0 | $ 10 |
Income Taxes (Details) (Sched62
Income Taxes (Details) (Schedule of Deferred Tax Assets and Liabilities, Current and Noncurrent) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 26, 2015 |
Income Tax Disclosure [Abstract] | ||
Current deferred tax assets | $ 0 | $ 8 |
Non-current deferred tax assets | 11 | 48 |
Current deferred tax liabilities | 0 | (46) |
Non-current deferred tax liabilities | (11) | 0 |
Net deferred tax assets | $ 0 | $ 10 |
Income Taxes (Details) (Summary
Income Taxes (Details) (Summary of Tax Attribute Carryforwards) $ in Millions | Dec. 31, 2016USD ($) |
US-net operating loss carryovers | Federal | |
Tax Attribute Carryforwards [Line Items] | |
Operating loss carryforwards, amount | $ 6,973 |
US-net operating loss carryovers | State/Provincial | |
Tax Attribute Carryforwards [Line Items] | |
Operating loss carryforwards, amount | 348 |
US-credit carryovers | Federal | |
Tax Attribute Carryforwards [Line Items] | |
Tax credit carryforward, amount | 398 |
US-credit carryovers | State/Provincial | |
Tax Attribute Carryforwards [Line Items] | |
Tax credit carryforward, amount | 209 |
Canada-net operating loss carryovers | Federal | |
Tax Attribute Carryforwards [Line Items] | |
Operating loss carryforwards, amount | 13 |
Canada-net operating loss carryovers | State/Provincial | |
Tax Attribute Carryforwards [Line Items] | |
Operating loss carryforwards, amount | 13 |
Canada-credit carryovers | Federal | |
Tax Attribute Carryforwards [Line Items] | |
Tax credit carryforward, amount | 331 |
Canada-credit carryovers | State/Provincial | |
Tax Attribute Carryforwards [Line Items] | |
Tax credit carryforward, amount | 39 |
Barbados-net operating loss carryovers | Federal | |
Tax Attribute Carryforwards [Line Items] | |
Operating loss carryforwards, amount | 29 |
Other foreign net operating loss carryovers | Federal | |
Tax Attribute Carryforwards [Line Items] | |
Operating loss carryforwards, amount | $ 36 |
Income Taxes (Details) (Sched64
Income Taxes (Details) (Schedule of Effective Income Tax Rate Reconciliation) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 24, 2016 | Jun. 25, 2016 | Mar. 26, 2016 | Dec. 26, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Income Tax Disclosure [Abstract] | |||||||||||
Statutory federal income tax provision (benefit) at 35% rate | $ (160) | $ (226) | $ (139) | ||||||||
State taxes, net of federal benefit | 1 | 1 | 1 | ||||||||
Foreign income at other than U.S. rates | (1) | 9 | 1 | ||||||||
US valuation allowance generated | 201 | 232 | 144 | ||||||||
Credit monetization | (2) | (2) | (2) | ||||||||
Provision for income taxes | $ 5 | $ 4 | $ 29 | $ 1 | $ 10 | $ 0 | $ 1 | $ 3 | $ 39 | $ 14 | $ 5 |
Federal statutory income tax rate | 35.00% | 35.00% |
Income Taxes (Details) (Sched65
Income Taxes (Details) (Schedule of Gross Unrecognized Tax Benefits) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, beginning | $ 38 | $ 28 | $ 52 |
Increases for tax positions taken in prior years | 3 | 11 | 1 |
Decreases for tax positions taken in prior years | 0 | (1) | 0 |
Increases for tax positions taken in the current year | 2 | 2 | 2 |
Decreases for settlements with taxing authorities | 0 | (2) | (27) |
Decreases for lapsing of the statute of limitations | (1) | 0 | 0 |
Unrecognized tax benefits, ending | $ 42 | $ 38 | $ 28 |
Debt and Other Obligations (Det
Debt and Other Obligations (Details) (Narrative) | Feb. 10, 2017USD ($) | Dec. 31, 2016USD ($)day$ / sharesshares | Dec. 26, 2015USD ($) | Dec. 27, 2014USD ($) | Dec. 30, 2016$ / shares | Sep. 28, 2016USD ($) | Sep. 14, 2016USD ($) | Feb. 26, 2014USD ($) |
Debt Instrument [Line Items] | ||||||||
Principal | $ 1,767,000,000 | |||||||
Unamortized discount | $ (308,000,000) | $ 0 | ||||||
Remaining term | 117 months | |||||||
Share price (USD per share) | $ / shares | $ 6 | $ 11.34 | ||||||
Converted instrument, shares issued (shares) | shares | 125.0031 | |||||||
Conversion price | $ / shares | $ 8 | |||||||
Issuance of common stock to partially settle the 7.00% Notes | $ 8,000,000 | |||||||
Gain (loss) on debt redemptions | (68,000,000) | 0 | $ (61,000,000) | |||||
Long-term debt, net of discount | 1,435,000,000 | 2,237,000,000 | ||||||
Secured revolving line of credit, outstanding balance | 0 | 230,000,000 | ||||||
Capital lease obligations | $ 0 | 0 | ||||||
Secured Revolving Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Fixed charge coverage ratio | 1.25 | |||||||
Secured revolving line of credit, maximum borrowing capacity | $ 500,000,000 | |||||||
Letters of credit, maximum borrowing capacity | $ 75,000,000 | |||||||
Percentage of eligible accounts receivable | 85.00% | |||||||
Fronting fee to agent | 0.125% | |||||||
Excess cash availability requirement as a percentage of total commitment | 20.00% | |||||||
Repayments of lines of credit | $ 230,000,000 | |||||||
Letters of credit, outstanding balance | 19,000,000 | |||||||
Secured revolving line of credit, outstanding balance | 0 | $ 230,000,000 | ||||||
Interest rate at end of period | 4.00% | |||||||
Secured revolving line of credit, remaining borrowing capacity | $ 121,000,000 | |||||||
Secured Revolving Line of Credit | Amended and restated loan and security agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Average availability for applicable margin | 66.66% | |||||||
Fixed charge coverage ratio | 1 | |||||||
Secured revolving line of credit, maximum borrowing capacity | $ 500,000,000 | |||||||
Letters of credit, maximum borrowing capacity | $ 75,000,000 | |||||||
Percentage of eligible accounts receivable | 90.00% | |||||||
Restrictions on Company's subsidiaries | $ 50,000,000 | |||||||
Excess cash availability requirement as a percentage of total commitment | 15.00% | |||||||
Excess cash availability requirement | $ 100,000,000 | |||||||
Maximum amount of permitted liens | 1,500,000,000 | |||||||
Condition related to sufficient amount reserved | 50,000,000 | |||||||
Loan parties’ excess cash availability | 75,000,000 | |||||||
Limit on amount of default related to bankruptcy | 50,000,000 | |||||||
Limit on amount of default related to judgments | 50,000,000 | |||||||
Limit on amount of default related to a loss, theft damage or destruction not covered by insurance | 50,000,000 | |||||||
Maximum commitments | $ 200,000,000 | |||||||
Secured Revolving Line of Credit | When less than 35% of the Secured Revolving Line of Credit utilized | ||||||||
Debt Instrument [Line Items] | ||||||||
Unused capacity, commitment fee percentage | 0.375% | |||||||
Secured Revolving Line of Credit | When 35% or more of the Secured Revolving Line of Credit is utilized | ||||||||
Debt Instrument [Line Items] | ||||||||
Unused capacity, commitment fee percentage | 0.25% | |||||||
Secured Revolving Line of Credit | Federal Funds | Amended and restated loan and security agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 0.50% | |||||||
Secured Revolving Line of Credit | LIBOR | Amended and restated loan and security agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate, applicable margin | 0.0125 | |||||||
Basis spread on variable rate | 1.00% | |||||||
Secured Revolving Line of Credit | Base Rate | Amended and restated loan and security agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate, applicable margin | 0.0025 | |||||||
2.125% Convertible Senior Notes Due 2026 | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal | $ 805,000,000 | $ 0 | ||||||
Unamortized discount | $ (308,000,000) | |||||||
Principal amount, at time of issuance | $ 105,000,000 | $ 700,000,000 | ||||||
Interest rate, stated percentage | 2.125% | |||||||
If-converted value in excess of principal | $ 336,000,000 | |||||||
Long-term debt, net of discount | $ 483,000,000 | |||||||
Effective interest rate | 8.00% | |||||||
6.75% Senior Notes due 2019 | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal | $ 196,000,000 | 600,000,000 | ||||||
Principal amount, at time of issuance | $ 600,000,000 | |||||||
Interest rate, stated percentage | 6.75% | |||||||
Repurchase partial tender offer | $ 442,000,000 | |||||||
Repurchased principal amount | $ 404,000,000 | |||||||
Redemption price, percentage | 101.00% | |||||||
Interest paid | $ 2,000,000 | |||||||
Gain (loss) on debt redemptions | (41,000,000) | |||||||
7.75% Senior Notes Due 2020 | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal | 0 | 450,000,000 | ||||||
Principal amount, at time of issuance | $ 500,000,000 | |||||||
Interest rate, stated percentage | 7.75% | |||||||
Repurchased principal amount | $ 450,000,000 | 50,000,000 | ||||||
Repayments of debt, including accrued interest | 467,000,000 | 49,000,000 | ||||||
Interest paid | 5,000,000 | 1,000,000 | ||||||
Gain (loss) on debt redemptions | (16,000,000) | 2,000,000 | ||||||
7.50% Senior Notes due 2022 | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal | 350,000,000 | 475,000,000 | ||||||
Principal amount, at time of issuance | $ 500,000,000 | |||||||
Interest rate, stated percentage | 7.50% | |||||||
Repurchase partial tender offer | $ 135,000,000 | |||||||
Repurchased principal amount | $ 125,000,000 | 25,000,000 | ||||||
Redemption price, percentage | 101.00% | |||||||
Repayments of debt, including accrued interest | 24,000,000 | |||||||
Interest paid | $ 1,000,000 | |||||||
Gain (loss) on debt redemptions | (10,000,000) | $ 1,000,000 | ||||||
7.00% Senior Notes due 2024 | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal | 416,000,000 | $ 500,000,000 | ||||||
Principal amount, at time of issuance | $ 500,000,000 | |||||||
Interest rate, stated percentage | 7.00% | |||||||
Redemption price, percentage | 101.00% | |||||||
Extinguishment of debt | $ 84,000,000 | |||||||
Repayments of debt | 77,000,000 | |||||||
Interest paid | 1,000,000 | |||||||
Issuance of common stock to partially settle the 7.00% Notes | 8,000,000 | |||||||
Gain (loss) on debt redemptions | $ (1,000,000) | |||||||
Debt Instrument, circumstance 1 | 7.00% Senior Notes due 2024 | ||||||||
Debt Instrument [Line Items] | ||||||||
Percentage of principal redeemable | 35.00% | |||||||
Debt Instrument, circumstance 2 | 7.00% Senior Notes due 2024 | ||||||||
Debt Instrument [Line Items] | ||||||||
Percentage of principal redeemable | 107.00% | |||||||
2.125% Convertible Senior Notes Due 2026 | Convertible Debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt issuance cost, net | $ 15,000,000 | |||||||
Payments of stock issuance cost | $ 9,000,000 | |||||||
2.125% Convertible Senior Notes Due 2026 | Debt Instrument, circumstance 1 | Convertible Debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Convertible, threshold trading days | day | 20 | |||||||
Threshold consecutive trading days | 30 days | |||||||
Threshold percentage of stock price trigger | 130.00% | |||||||
2.125% Convertible Senior Notes Due 2026 | Debt Instrument, circumstance 2 | Convertible Debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Threshold consecutive trading days | 10 days | |||||||
Threshold percentage of stock price trigger | 98.00% | |||||||
Conversion period after threshold period days | day | 5 | |||||||
Treasury Stock | ||||||||
Debt Instrument [Line Items] | ||||||||
Issuance of common stock to partially settle the 7.00% Notes | $ 8,000,000 | |||||||
Subsequent Event | 6.75% Senior Notes due 2019 | ||||||||
Debt Instrument [Line Items] | ||||||||
Extinguishment of debt | $ 5,000,000 | |||||||
Subsequent Event | 7.50% Senior Notes due 2022 | ||||||||
Debt Instrument [Line Items] | ||||||||
Extinguishment of debt | 3,000,000 | |||||||
Subsequent Event | 7.00% Senior Notes due 2024 | ||||||||
Debt Instrument [Line Items] | ||||||||
Extinguishment of debt | $ 26,000,000 |
Debt and Other Obligations (D67
Debt and Other Obligations (Details) (Summary of Debt and Other Obligations) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 26, 2015 | |
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 1,767 | ||
6.75% Notes, interest rate swap | 0 | $ 7 | |
Secured revolving line of credit, outstanding balance | 0 | 230 | |
Other Long-term Debt | 1 | 0 | |
Long-term debt including current portion | 1,768 | 2,262 | |
Unamortized discount | (308) | 0 | |
Debt issuance cost, net | (25) | (25) | |
Long-term debt, net of discount | 1,435 | 2,237 | |
Long-term debt, less current portion | [1] | 1,435 | 2,007 |
Secured Revolving Line of Credit | |||
Debt Instrument [Line Items] | |||
Secured revolving line of credit, outstanding balance | $ 0 | 230 | |
6.75% Senior Notes due 2019 | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 6.75% | ||
Long-term debt, gross | $ 196 | 600 | |
7.75% Senior Notes Due 2020 | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 7.75% | ||
Long-term debt, gross | $ 0 | 450 | |
7.50% Senior Notes due 2022 | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 7.50% | ||
Long-term debt, gross | $ 350 | 475 | |
7.00% Senior Notes due 2024 | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 7.00% | ||
Long-term debt, gross | $ 416 | 500 | |
2.125% Convertible Senior Notes Due 2026 | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 2.125% | ||
Long-term debt, gross | $ 805 | $ 0 | |
Unamortized discount | (308) | ||
Long-term debt, net of discount | $ 483 | ||
[1] | Amounts reflected adoption of FASB ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs beginning in the first quarter of 2016. |
Debt and Other Obligations (D68
Debt and Other Obligations (Details) (2.125% Notes) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 26, 2015 |
Debt Instrument [Line Items] | ||
Principal | $ 1,767 | |
Unamortized discount | (308) | $ 0 |
Long-term debt, net of discount | 1,435 | 2,237 |
2.125% Convertible Senior Notes Due 2026 | ||
Debt Instrument [Line Items] | ||
Principal | 805 | $ 0 |
Unamortized discount | (308) | |
Unamortized debt issuance costs | (14) | |
Long-term debt, net of discount | 483 | |
Carrying amount of the equity component, net | $ 305 |
Debt and Other Obligations (D69
Debt and Other Obligations (Details) (Interest Expense Recognized) - 2.125% Convertible Senior Notes Due 2026 $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Debt Instrument [Line Items] | |
Contractual interest expense | $ 5 |
Interest cost related to amortization of debt issuance costs | 0 |
Interest cost related to amortization of the debt discount | $ 6 |
Debt and Other Obligations (D70
Debt and Other Obligations (Details) (Debt Instrument Redemption) - 7.00% Senior Notes due 2024 | 12 Months Ended |
Dec. 31, 2016 | |
Debt Instrument, Redemption [Line Items] | |
Debt instrument, redemption price, percentage | 101.00% |
Beginning on July 1, 2019 through June 30, 2020 | |
Debt Instrument, Redemption [Line Items] | |
Debt instrument, redemption price, percentage | 103.50% |
Beginning on July 1, 2020 through June 30, 2021 | |
Debt Instrument, Redemption [Line Items] | |
Debt instrument, redemption price, percentage | 102.333% |
Beginning on July 1, 2021 through June 30, 2022 | |
Debt Instrument, Redemption [Line Items] | |
Debt instrument, redemption price, percentage | 101.167% |
On July 1, 2022 and thereafter | |
Debt Instrument, Redemption [Line Items] | |
Debt instrument, redemption price, percentage | 100.00% |
Debt and Other Obligations (D71
Debt and Other Obligations (Details) (Secured Revolving Line of Credit, Applicable Margin) | 12 Months Ended |
Dec. 31, 2016 | |
Greater than or equal to 66.66% of the revolver commitment | |
Line of Credit Facility [Line Items] | |
Base rate | 0.50% |
LIBOR | 1.50% |
Greater than or equal to 33.33% of the revolver commitment, less than 66.66% | |
Line of Credit Facility [Line Items] | |
Base rate | 0.75% |
LIBOR | 1.75% |
Less than 33.33% of the revolver commitment | |
Line of Credit Facility [Line Items] | |
Base rate | 1.00% |
LIBOR | 2.00% |
Debt and Other Obligations (D72
Debt and Other Obligations (Details) (Future Payments on Total Debt) $ in Millions | Dec. 31, 2016USD ($) |
Debt Disclosure [Abstract] | |
Long-term debt (principal only), 2017 | $ 0 |
Long-term debt (principal only), 2018 | 0 |
Long-term debt (principal only), 2019 | 196 |
Long-term debt (principal only), 2020 | 0 |
Long-term debt (principal only), 2021 | 0 |
Long-term debt (principal only), 2022 and thereafter | 1,571 |
Total long-term debt (principal only) | $ 1,767 |
Other Income (expense), Net (De
Other Income (expense), Net (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 24, 2016 | Jun. 25, 2016 | Mar. 26, 2016 | Dec. 26, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Income Statement Related Disclosures [Abstract] | |||||||||||
Interest income | $ 2 | $ 0 | $ 0 | ||||||||
Net gain on sale of equity interests | 146 | 0 | 0 | ||||||||
Net loss on debt redemptions | (68) | 0 | (61) | ||||||||
Other | 0 | (5) | (5) | ||||||||
Other expense, net | $ (7) | $ (63) | $ 150 | $ 0 | $ (2) | $ 0 | $ (3) | $ 0 | $ 80 | $ (5) | $ (66) |
Segment Reporting (Details) (Su
Segment Reporting (Details) (Summary of Operations by Segment) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016USD ($) | Sep. 24, 2016USD ($) | Jun. 25, 2016USD ($) | Mar. 26, 2016USD ($) | Dec. 26, 2015USD ($) | Sep. 26, 2015USD ($) | Jun. 27, 2015USD ($) | Mar. 28, 2015USD ($) | Dec. 31, 2016USD ($)segment | Dec. 26, 2015USD ($) | Dec. 27, 2014USD ($) | |
Segment Reporting Information | |||||||||||
Number of reportable segments | segment | 2 | ||||||||||
Net revenue | $ 1,106 | $ 1,307 | $ 1,027 | $ 832 | $ 958 | $ 1,061 | $ 942 | $ 1,030 | $ 4,272 | $ 3,991 | $ 5,506 |
Operating income (loss) | $ (3) | $ (293) | $ (8) | $ (68) | $ (49) | $ (158) | $ (137) | $ (137) | (372) | (481) | (155) |
Computing and Graphics | |||||||||||
Segment Reporting Information | |||||||||||
Net revenue | 1,967 | 1,805 | 3,132 | ||||||||
Operating income (loss) | (238) | (502) | (76) | ||||||||
Enterprise, Embedded and Semi-Custom | |||||||||||
Segment Reporting Information | |||||||||||
Net revenue | 2,305 | 2,186 | 2,374 | ||||||||
Operating income (loss) | 283 | 215 | 399 | ||||||||
All Other | |||||||||||
Segment Reporting Information | |||||||||||
Operating income (loss) | $ (417) | $ (194) | $ (478) |
Segment Reporting (Components o
Segment Reporting (Components of Other Operating Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 24, 2016 | Jun. 25, 2016 | Mar. 26, 2016 | Dec. 26, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Segment Reporting Information | ||||||||||||
Stock-based compensation expense | $ 5 | $ 86 | $ 63 | $ 81 | ||||||||
Amortization of acquired intangible assets | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ (3) | 0 | (3) | (14) | |
Goodwill impairment | 0 | 0 | (233) | |||||||||
Lower of cost or market inventory adjustment | (65) | |||||||||||
Total operating loss | $ (3) | $ (293) | $ (8) | $ (68) | $ (49) | $ (158) | $ (137) | $ (137) | (372) | (481) | (155) | |
All Other | ||||||||||||
Segment Reporting Information | ||||||||||||
Stock-based compensation expense | (86) | (63) | (81) | |||||||||
Restructuring and other special charges, net | 10 | (129) | (71) | |||||||||
Amortization of acquired intangible assets | 0 | (3) | (14) | |||||||||
Charge related to the Sixth Amendment to the WSA with GF | (340) | 0 | 0 | |||||||||
Goodwill impairment | 0 | 0 | (233) | |||||||||
Lower of cost or market inventory adjustment | 0 | 0 | (58) | |||||||||
Workforce rebalancing severance charges | 0 | 0 | (14) | |||||||||
Other | (1) | 1 | (7) | |||||||||
Total operating loss | $ (417) | $ (194) | $ (478) |
Segment Reporting (Details) (Sa
Segment Reporting (Details) (Sales by Country and by Customer) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 24, 2016 | Jun. 25, 2016 | Mar. 26, 2016 | Dec. 26, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Segment Reporting Information | |||||||||||
Net revenue | $ 1,106 | $ 1,307 | $ 1,027 | $ 832 | $ 958 | $ 1,061 | $ 942 | $ 1,030 | $ 4,272 | $ 3,991 | $ 5,506 |
United States | |||||||||||
Segment Reporting Information | |||||||||||
Net revenue | 923 | 984 | 1,030 | ||||||||
Europe | |||||||||||
Segment Reporting Information | |||||||||||
Net revenue | 155 | 168 | 325 | ||||||||
China | |||||||||||
Segment Reporting Information | |||||||||||
Net revenue | 1,108 | 1,145 | 2,324 | ||||||||
Singapore | |||||||||||
Segment Reporting Information | |||||||||||
Net revenue | 571 | 356 | 371 | ||||||||
Japan | |||||||||||
Segment Reporting Information | |||||||||||
Net revenue | 1,443 | 1,254 | 1,324 | ||||||||
Other Countries | |||||||||||
Segment Reporting Information | |||||||||||
Net revenue | $ 72 | $ 84 | $ 132 | ||||||||
Revenue | Customer Concentration Risk | Customer A | |||||||||||
Segment Reporting Information | |||||||||||
Percentage, by major customer | 33.00% | 31.00% | 23.00% | ||||||||
Revenue | Customer Concentration Risk | Customer B | |||||||||||
Segment Reporting Information | |||||||||||
Percentage, by major customer | 16.00% | 18.00% | 13.00% | ||||||||
Revenue | Customer Concentration Risk | Customer C | |||||||||||
Segment Reporting Information | |||||||||||
Percentage, by major customer | 10.00% | 8.00% | 13.00% |
Segment Reporting (Details) (Lo
Segment Reporting (Details) (Long-lived Assets by Geographic Area) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 26, 2015 |
Segment Reporting Information | ||
Property, plant and equipment, net | $ 164 | $ 188 |
United States | ||
Segment Reporting Information | ||
Property, plant and equipment, net | 104 | 123 |
Malaysia | ||
Segment Reporting Information | ||
Property, plant and equipment, net | 9 | 11 |
China | ||
Segment Reporting Information | ||
Property, plant and equipment, net | 7 | 5 |
Singapore | ||
Segment Reporting Information | ||
Property, plant and equipment, net | 24 | 25 |
Other Countries | ||
Segment Reporting Information | ||
Property, plant and equipment, net | $ 20 | $ 24 |
Common Stock and Stockholders78
Common Stock and Stockholders’ Equity (Deficit) (Details) (Narrative) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Sep. 24, 2016 | Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | Dec. 30, 2016 | Dec. 28, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 | ||||
Share price (USD per share) | $ 6 | $ 11.34 | ||||
Proceeds from issuance of common stock, net of issuance costs | $ 667 | $ 0 | $ 0 | |||
Payments of stock issuance costs | $ 23 | |||||
Common stock, shares outstanding | 935 | 792 | ||||
Number of shares available for future grants | 31.5 | |||||
Number of shares reserved for future issuance | 72.1 | |||||
Vesting period | 3 years | |||||
Expiration period | 10 years | |||||
Stock Appreciation Rights | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Expiration period | 10 years | |||||
Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock options, shares granted, weighted average estimated grant date fair value per share (USD per share) | $ 3.10 | $ 1.02 | $ 1.46 | |||
Expected dividend payments | 0.00% | 0.00% | 0.00% | |||
Stock options, shares outstanding, weighted average remaining contractual life | 4 years 3 months 14 days | |||||
Stock options, shares outstanding, aggregate intrinsic value | $ 145 | |||||
Stock options, shares exercisable, aggregate intrinsic value | $ 90 | |||||
Stock options, shares exercisable, weighted average remaining contractual life | 3 years 5 months 12 days | |||||
Stock options, shares exercised, total intrinsic value | $ 10 | $ 2 | $ 7 | |||
Stock options, total unrecognized compensation expense, net of estimated forfeitures | $ 11 | |||||
Weighted-average period expected for recognition | 1 year 9 months 11 days | |||||
Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock units, shares purchased, weighted average price per share (USD per share) | $ 0 | |||||
Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock units, shares purchased, weighted average price per share (USD per share) | $ 0 | |||||
Weighted-average period expected for recognition | 1 year 9 months 4 days | |||||
Restricted stock units, shares granted | 29 | 38 | 23 | |||
Restricted stock units, shares vested, total fair value | $ 151 | $ 33 | $ 60 | |||
Restricted stock units, share-based compensation expense | 80 | $ 57 | $ 65 | |||
Restricted stock units, total unrecognized compensation expense, net of estimated forfeitures | $ 121 | |||||
Performance-based Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock units, shares granted | 5 | 5.2 | 5 | |||
Performance-based Restricted Stock Units | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting rights, percentage | 0.00% | |||||
Performance-based Restricted Stock Units | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting rights, percentage | 250.00% | |||||
Market-based Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock units, shares granted | 2 | 3.9 | ||||
Common Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Issuance of common stock, net of issuance costs, shares | 115 | 115 | ||||
Common stock, shares outstanding | 935 | 792 | 776 | 725 |
Common Stock and Stockholders79
Common Stock and Stockholders’ Equity (Deficit) (Details) (Allocation of Recognized Period Costs) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 27, 2014 | Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 5,000,000 | $ 86,000,000 | $ 63,000,000 | $ 81,000,000 |
Excess tax benefits from stock-based compensation | 0 | 0 | 0 | |
Cost of Sales | ||||
Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 2,000,000 | 3,000,000 | 3,000,000 | |
Research and Development Expense | ||||
Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 49,000,000 | 36,000,000 | 44,000,000 | |
Selling, General and Administrative Expenses | ||||
Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 35,000,000 | $ 24,000,000 | $ 34,000,000 |
Common Stock and Stockholders80
Common Stock and Stockholders’ Equity (Deficit) (Details) (Weighted Average Valuation Assumptions for Stock Options) - Stock Options | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Stock Options, Valuation Assumptions [Line Items] | |||
Expected volatility | 62.33% | 60.14% | 53.36% |
Risk-free interest rate | 1.02% | 1.29% | 1.15% |
Expected dividends | 0.00% | 0.00% | 0.00% |
Expected life | 3 years 11 months 23 days | 3 years 10 months 27 days | 3 years 10 months 10 days |
Common Stock and Stockholders81
Common Stock and Stockholders’ Equity (Deficit) (Details) (Stock Option Activities) - Stock Options - $ / shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Number of Shares | |||
Stock options, shares outstanding at beginning of year | 32 | 36 | 35 |
Stock options, shares granted | 2 | 8 | 8 |
Stock options, shares canceled | (9) | (9) | (4) |
Stock options, shares exercised | (5) | (3) | (3) |
Stock options, shares outstanding at end of year | 20 | 32 | 36 |
Stock options, shares exercisable at end of year | 13 | 21 | 23 |
Weighted- Average Exercise Price | |||
Stock options, shares outstanding at beginning of year, weighted average exercise price (USD per share) | $ 4.44 | $ 4.78 | $ 5.08 |
Stock options, shares granted, weighted average exercise price (USD per share) | 6.98 | 2.12 | 3.73 |
Stock options, shares canceled, weighted average exercise price (USD per share) | 5.53 | 4.91 | 7.64 |
Stock options, shares exercised, weighted average exercise price (USD per share) | 4.75 | 1.61 | 1.47 |
Stock options, shares outstanding at end of year, weighted average exercise price (USD per share) | 4.15 | 4.44 | 4.78 |
Stock options, shares exercisable at end of year, weighted average exercise price (USD per share) | $ 4.32 | $ 5.34 | $ 5.28 |
Common Stock and Stockholders82
Common Stock and Stockholders’ Equity (Deficit) (Details) (Restricted Stock Units Activities) - $ / shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Restricted Stock Units | |||
Number of Shares | |||
Restricted stock units, shares nonvested at beginning of period | 51 | 43 | 40 |
Restricted stock units, shares granted | 29 | 38 | 23 |
Restricted stock units, shares forfeited | (5) | (15) | (5) |
Restricted stock units, shares vested | (23) | (15) | (15) |
Restricted stock units, shares nonvested at end of period | 52 | 51 | 43 |
Weighted- Average Fair Value | |||
Restricted stock units, shares nonvested at beginning of period, weighted average grant date fair value (USD per share) | $ 2.61 | $ 4.05 | $ 4.52 |
Restricted stock units, shares granted, weighted average grant date fair value (USD per share) | 4.72 | 2.03 | 3.89 |
Restricted stock units, shares forfeited, weighted average grant date fair value (USD per share) | 2.95 | 3.71 | 4.48 |
Restricted stock units, shares vested, weighted average grant date fair value (USD per share) | 2.56 | 4.13 | 4.90 |
Restricted stock units, shares nonvested at end of period, weighted average grant date fair value (USD per share) | $ 3.73 | $ 2.61 | $ 4.05 |
Performance-based Restricted Stock Units | |||
Number of Shares | |||
Restricted stock units, shares nonvested at beginning of period | 7 | 9 | 5 |
Restricted stock units, shares granted | 5 | 5.2 | 5 |
Restricted stock units, shares forfeited | (2) | (7) | (1) |
Restricted stock units, shares vested | (5) | 0 | 0 |
Restricted stock units, shares nonvested at end of period | 5 | 7 | 9 |
Other Employee Benefit Plans (D
Other Employee Benefit Plans (Details) (Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |||
Maximum allowed percentage of employee's pre-tax salary contributed to the 401(k) plan | 100.00% | ||
Employer matching contribution, percent of match | 75.00% | ||
Employee contribution, percent of gross pay subject to match | 6.00% | ||
Amount of annual maximum allowed employer matching contributions per employee | $ 11,925 | $ 11,925 | $ 11,700 |
Amount of the Company's contributions to the 401(k) plan | $ 16,000,000 | $ 16,000,000 | $ 18,000,000 |
Commitments and Guarantees (Det
Commitments and Guarantees (Details) (Narrative) ft² in Thousands, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2016USD ($)ft² | Dec. 26, 2015USD ($) | Dec. 27, 2014USD ($) | Sep. 28, 2013USD ($) | Dec. 27, 1998USD ($) | |
Long-term Purchase Commitment [Line Items] | |||||
Rent expense | $ 39 | $ 47 | $ 59 | ||
Deferred gain on sale leaseback transaction | $ 14 | ||||
Renewal term | 4 years | ||||
Renewal term, after initial term | 3 years 6 months | ||||
Total non-cancelable operating lease commitments | $ 388 | ||||
Total unconditional purchase commitments | $ 538 | ||||
Product warranty period | 1 year | ||||
Limited product warranty period | 3 years | ||||
Wafers and Substrates | |||||
Long-term Purchase Commitment [Line Items] | |||||
Total unconditional purchase commitments | $ 447 | ||||
Software and Technology License | |||||
Long-term Purchase Commitment [Line Items] | |||||
Total unconditional purchase commitments | 91 | ||||
Globalfoundries | |||||
Long-term Purchase Commitment [Line Items] | |||||
Purchase obligation | $ 3,300 | ||||
Sunnyvale, CA Facility | |||||
Long-term Purchase Commitment [Line Items] | |||||
Term of contract | 20 years | ||||
Deferred gain on sale leaseback transaction | $ 37 | ||||
Santa Clara, CA Facility | |||||
Long-term Purchase Commitment [Line Items] | |||||
Term of contract | 10 years | ||||
Area of real estate property | ft² | 220 | ||||
Renewal term | 5 years | ||||
Total non-cancelable operating lease commitments | $ 125 | ||||
Minimum | |||||
Long-term Purchase Commitment [Line Items] | |||||
Term of contract | 1 year | ||||
Maximum | |||||
Long-term Purchase Commitment [Line Items] | |||||
Term of contract | 5 years |
Commitments and Guarantees (D85
Commitments and Guarantees (Details) (Non-Cancelable Long-Term Operating Lease Obligations) $ in Millions | Dec. 31, 2016USD ($) |
Future Non-cancelable Operating Lease Commitments [Abstract] | |
2,017 | $ 49 |
2,018 | 51 |
2,019 | 46 |
2,020 | 43 |
2,021 | 64 |
2022 and thereafter | 135 |
Total non-cancelable operating lease commitments | $ 388 |
Commitments and Guarantees (D86
Commitments and Guarantees (Details) (Unconditional Purchase Obligations) $ in Millions | Dec. 31, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,017 | $ 391 |
2,018 | 86 |
2,019 | 51 |
2,020 | 9 |
2,021 | 1 |
2022 and thereafter | 0 |
Total unconditional purchase commitments | $ 538 |
Commitments and Guarantees (D87
Commitments and Guarantees (Details) (Schedule of Changes in Product Warranty Liability) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 26, 2015 | |
Changes in Product Warranty Liability [Roll Forward] | ||
Beginning balance | $ 15 | $ 19 |
New warranties issued during the period | 21 | 28 |
Settlements during the period | (19) | (26) |
Changes in liability for pre-existing warranties during the period, including expirations | (5) | (6) |
Ending balance | $ 12 | $ 15 |
Contingencies (Details)
Contingencies (Details) $ in Millions | Dec. 31, 2016USD ($)site |
Loss Contingency [Abstract] | |
Site contingency, number of sites | site | 3 |
Estimated enviromental liability | $ | $ 4 |
Restructuring and Other Speci89
Restructuring and Other Special Charges, Net (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 24, 2016 | Jun. 25, 2016 | Mar. 26, 2016 | Dec. 26, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Restructuring Cost and Reserve | ||||||||||||
Asset impairment charges | $ 33 | |||||||||||
Restructuring and other special charges, net | $ 0 | $ 0 | $ (7) | $ (3) | $ (6) | $ 48 | $ 0 | $ 87 | $ (10) | $ 129 | $ 71 | |
Dense Server Systems Business Exit | ||||||||||||
Restructuring Cost and Reserve | ||||||||||||
Severance and benefits charges (reversals), net | 4 | |||||||||||
Asset impairment charges | 7 | |||||||||||
Contract or program termination charges | 3 | |||||||||||
Restructuring and other special charges, net | 76 | |||||||||||
Impairment charge | 62 | |||||||||||
2015 Restructuring Plan | ||||||||||||
Restructuring Cost and Reserve | ||||||||||||
Reduction of the Company's global workforce | 5.00% | 5.00% | ||||||||||
Charges (reversals), net | $ (1) | 37 | ||||||||||
Severance and benefits charges (reversals), net | 27 | |||||||||||
Facility consolidations and closure charges (reversals), net | 1 | |||||||||||
Asset impairment charges | 9 | |||||||||||
2014 Restructuring Plan | ||||||||||||
Restructuring Cost and Reserve | ||||||||||||
Reduction of the Company's global workforce | 6.00% | 6.00% | ||||||||||
Charges (reversals), net | $ 57 | $ (9) | 16 | |||||||||
Severance and benefits charges (reversals), net | 44 | 2 | ||||||||||
Facility consolidations and closure charges (reversals), net | 1 | 9 | ||||||||||
Asset impairment charges | 6 | $ 5 | ||||||||||
Contract or program termination charges | $ 6 |
Restructuring and Other Speci90
Restructuring and Other Special Charges, Net (Schedule of Restructuring Activities and Related Liabilities) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 27, 2014 | Dec. 31, 2016 | Dec. 26, 2015 | |
2015 Restructuring Plan | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve balance, beginning of period | $ 14 | ||
Charges (reversals), net | (1) | $ 37 | |
Cash payments | (10) | ||
Restructuring reserve balance, end of period | 3 | 14 | |
2015 Restructuring Plan | Severance and Related Benefits | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve balance, beginning of period | 14 | ||
Charges (reversals), net | (1) | ||
Cash payments | (10) | ||
Restructuring reserve balance, end of period | 3 | 14 | |
2015 Restructuring Plan | Other Exit Related Costs | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve balance, beginning of period | 0 | ||
Charges (reversals), net | 0 | ||
Cash payments | 0 | ||
Restructuring reserve balance, end of period | 0 | 0 | |
2014 Restructuring Plan | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve balance, beginning of period | 20 | ||
Charges (reversals), net | $ 57 | (9) | 16 |
Cash payments | (7) | ||
Restructuring reserve balance, end of period | 4 | 20 | |
2014 Restructuring Plan | Severance and Related Benefits | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve balance, beginning of period | 5 | ||
Charges (reversals), net | (2) | ||
Cash payments | (1) | ||
Restructuring reserve balance, end of period | 2 | 5 | |
2014 Restructuring Plan | Other Exit Related Costs | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve balance, beginning of period | 15 | ||
Charges (reversals), net | (7) | ||
Cash payments | (6) | ||
Restructuring reserve balance, end of period | $ 2 | $ 15 |
Restructuring and Other Speci91
Restructuring and Other Special Charges, Net (Executive Officer Separation) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 27, 2014 | Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Restructuring and Related Activities [Abstract] | ||||
Other Special Charges Net | $ 13 | |||
Executive officer separation charges | 10 | |||
Cash payments related to executive officer separation | 5 | |||
Stock-based compensation expense | $ 5 | $ 86 | $ 63 | $ 81 |
Supplementary Financial Infor92
Supplementary Financial Information (unaudited) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 24, 2016 | Jun. 25, 2016 | Mar. 26, 2016 | Dec. 26, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | Apr. 29, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||
Net revenue | $ 1,106 | $ 1,307 | $ 1,027 | $ 832 | $ 958 | $ 1,061 | $ 942 | $ 1,030 | $ 4,272 | $ 3,991 | $ 5,506 | |
Cost of sales | 755 | 1,248 | 708 | 563 | 675 | 822 | 710 | 704 | 3,274 | 2,911 | 3,667 | |
Gross margin | 351 | 59 | 319 | 269 | 283 | 239 | 232 | 326 | 998 | 1,080 | 1,839 | |
Research and development | 264 | 259 | 243 | 242 | 229 | 241 | 235 | 242 | 1,008 | 947 | 1,072 | |
Marketing, general and administrative | 121 | 117 | 117 | 105 | 109 | 108 | 134 | 131 | 460 | 482 | 604 | |
Amortization of acquired intangible assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3 | 0 | 3 | 14 | |
Restructuring and other special charges (reversals), net | 0 | 0 | (7) | (3) | (6) | 48 | 0 | 87 | (10) | 129 | 71 | |
Licensing gain | (31) | (24) | (26) | (7) | 0 | 0 | 0 | 0 | (88) | 0 | 0 | |
Operating loss | (3) | (293) | (8) | (68) | (49) | (158) | (137) | (137) | (372) | (481) | (155) | |
Interest expense | (34) | (41) | (41) | (40) | (41) | (39) | (40) | (40) | (156) | (160) | (177) | |
Other income (expense), net | (7) | (63) | 150 | 0 | (2) | 0 | (3) | 0 | 80 | (5) | (66) | |
Income (loss) before income taxes | (44) | (397) | 101 | (108) | (92) | (197) | (180) | (177) | (458) | (646) | (398) | |
Provision for income taxes | 5 | 4 | 29 | 1 | 10 | 0 | 1 | 3 | 39 | 14 | 5 | |
Equity in income (loss) of ATMP JV | (2) | (5) | (3) | 0 | 0 | 0 | 0 | 0 | $ (10) | $ 0 | $ 0 | |
Net income (loss) | $ (51) | $ (406) | $ 69 | $ (109) | $ (102) | $ (197) | $ (181) | $ (180) | ||||
Net income (loss) per share | ||||||||||||
Basic (USD per share) | $ (0.06) | $ (0.50) | $ 0.09 | $ (0.14) | $ (0.13) | $ (0.25) | $ (0.23) | $ (0.23) | $ (0.60) | $ (0.84) | $ (0.53) | |
Diluted (USD per share) | $ (0.06) | $ (0.50) | $ 0.08 | $ (0.14) | $ (0.13) | $ (0.25) | $ (0.23) | $ (0.23) | $ (0.60) | $ (0.84) | $ (0.53) | |
Shares used in per share calculation | ||||||||||||
Basic (shares) | 931 | 815 | 794 | 793 | 791 | 785 | 778 | 777 | 835 | 783 | 768 | |
Diluted (shares) | 931 | 815 | 821 | 793 | 791 | 785 | 778 | 777 | 835 | 783 | 768 | |
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Asset impairment charges | $ 33 | |||||||||||
Lower of cost or market inventory adjustment | $ 65 | |||||||||||
Net gain on sale of equity interests | $ 146 | $ 0 | $ 0 | |||||||||
ATMP JV | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Net gain on sale of equity interests | $ (4) | $ 150 | ||||||||||
TFME’s Affiliates | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Equity interest in each JV | 85.00% |