Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 30, 2024 | Apr. 25, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-07882 | |
Entity Registrant Name | ADVANCED MICRO DEVICES, INC | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 94-1692300 | |
Entity Address, Address Line One | 2485 Augustine Drive | |
Entity Address, City or Town | Santa Clara | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95054 | |
City Area Code | 408 | |
Local Phone Number | 749-4000 | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Trading Symbol | AMD | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,616,313,871 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000002488 | |
Current Fiscal Year End Date | --12-28 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Income Statement [Abstract] | ||
Net revenue | $ 5,473 | $ 5,353 |
Cost of Goods and Service, Excluding Depreciation, Depletion, and Amortization | 2,683 | 2,689 |
Amortization of acquisition-related intangibles- COGS | 230 | 305 |
Cost of sales | 2,913 | 2,994 |
Gross profit | 2,560 | 2,359 |
Research and development | 1,525 | 1,411 |
Marketing, general and administrative | 620 | 585 |
Amortization of acquisition-related intangibles-Opex | 392 | 518 |
Licensing gain | (13) | (10) |
Operating income (loss) | 36 | (145) |
Interest expense | (25) | (25) |
Other income (expense), net | 53 | 43 |
Income (loss) before income taxes and equity income | 64 | (127) |
Income tax provision (benefit) | (52) | 13 |
Equity income in investee | 7 | 1 |
Net income (loss) | $ 123 | $ (139) |
Earnings (loss) per share | ||
Basic (in usd per share) | $ 0.08 | $ (0.09) |
Diluted (in usd per share) | $ 0.07 | $ (0.09) |
Shares used in per share calculation | ||
Basic (in shares) | 1,617 | 1,611 |
Diluted (in shares) | 1,639 | 1,611 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 123 | $ (139) |
Other comprehensive income (loss), net of tax: | ||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax | (22) | 20 |
Total comprehensive income (loss) | 101 | (119) |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax | $ (22) | $ 20 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) shares in Millions, $ in Millions | Mar. 30, 2024 | Dec. 30, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 4,190 | $ 3,933 |
Short-Term Investments | 1,845 | 1,840 |
Accounts receivable, net | 5,038 | 5,376 |
Inventories | 4,652 | 4,351 |
Receivables from related parties | 31 | 9 |
Prepaid expenses and other current assets | 1,328 | 1,259 |
Total current assets | 17,084 | 16,768 |
Property and equipment, net | 1,624 | 1,589 |
Operating lease right-of-use assets | 632 | 633 |
Goodwill | 24,262 | 24,262 |
Acquisition-related intangibles, net | 20,741 | 21,363 |
Investment: equity method | 106 | 99 |
Deferred tax assets | 433 | 366 |
Other non-current assets | 3,013 | 2,805 |
Total Assets | 67,895 | 67,885 |
Current liabilities: | ||
Accounts payable | 1,418 | 2,055 |
Payables to related parties | 438 | 363 |
Accrued liabilities | 3,444 | 3,082 |
Other current liabilities | 424 | 438 |
Less: current portion of long-term debt and related unamortized debt premium and issuance costs | 750 | 751 |
Total current liabilities | 6,474 | 6,689 |
Long-term debt, net of current portion | 1,718 | 1,717 |
Long-term operating lease liabilities | 530 | 535 |
Deferred tax liabiilty | 1,199 | 1,202 |
Other long-term liabilities | 1,776 | 1,850 |
Commitments and contingencies (See Note 12) | ||
Capital stock: | ||
Common stock, par value $0.01; shares authorized: 2,250; shares issued: 1,666 and 1,663; shares outstanding: 1,618 and 1,616 | 17 | 17 |
Additional paid-in capital | 60,053 | 59,676 |
Treasury stock, at cost (shares held: 48 and 47) | (4,690) | (4,514) |
Retained earnings | 846 | 723 |
Accumulated other comprehensive loss | (28) | (10) |
Total stockholders’ equity | 56,198 | 55,892 |
Total liabilities and stockholders’ equity | $ 67,895 | $ 67,885 |
Common stock, outstanding (in shares) | 1,618 | 1,616 |
Common stock, par value (in dollars per share) | $ 0.01 | |
Common stock, authorized (in shares) | 2,250 | |
Common stock, issued (in shares) | 1,666 | 1,663 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheet (Parenthetical) - USD ($) shares in Millions, $ in Millions | Mar. 30, 2024 | Dec. 30, 2023 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | |
Common stock, authorized (in shares) | 2,250 | |
Common stock, issued (in shares) | 1,666 | 1,663 |
Common stock, outstanding (in shares) | 1,618 | 1,616 |
Treasury Stock, Common, Shares | 48 | 47 |
Cash and cash equivalents | $ 4,190 | $ 3,933 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 123 | $ (139) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Stock-based compensation | 371 | 309 |
Inventory Write-down | 65 | 0 |
Amortization of operating lease right-of-use assets | 26 | 24 |
Other | (22) | (5) |
Changes in operating assets and liabilities | ||
Accounts receivable, net | 338 | (86) |
Inventories | (368) | 464 |
Prepaid expenses and other assets | (322) | 191 |
Receivables from and payables to related parties, net | 53 | (109) |
Accounts payable | (636) | 73 |
Accrued and other liabilities | 175 | 218 |
Net Cash Provided by (Used in) Operating Activities, Total | 521 | 486 |
Net cash provided by operating activities | ||
Purchases of property and equipment | (142) | (158) |
Purchases of short-term investments | (433) | (1,703) |
Proceeds from maturity of short-term investments | 441 | 473 |
Proceeds from sale of short-term investments | 2 | 145 |
Payments to Acquire Businesses, Net of Cash Acquired [Abstract] | ||
Other | (3) | (6) |
Net Cash Provided by (Used in) Investing Activities, Total | (135) | (1,237) |
Net cash used in financing activities | ||
Proceeds from sales of common stock through employee equity plans | 5 | 3 |
Payments for Repurchase of Common Stock | (4) | (241) |
Payment, Tax Withholding, Share-Based Payment Arrangement | (129) | (21) |
Proceeds from (Payments for) Other Financing Activities | 1 | 0 |
Net Cash Provided by (Used in) Financing Activities, Total | (129) | (259) |
Net increase (decrease) in cash and cash equivalents | 257 | (1,010) |
Cash and cash equivalents at beginning of period | 3,933 | 4,835 |
Cash and cash equivalents at end of period | 4,190 | 3,825 |
Income Taxes Paid, Net | 87 | 21 |
Proceeds from (Payments for) Other Financing Activities | 1 | 0 |
Non-cash investing and financing activities: | ||
Purchases of property and equipment, accrued but not paid | 102 | 69 |
Liabilities Assumed, RSU Tax Withholding [Abstract] | 42 | 0 |
Operating lease right-of-use assets acquired by assuming related liabilities | 25 | 0 |
Reconciliation of cash, cash equivalents, and restricted cash | ||
Cash and cash equivalents | 4,190 | |
Total cash and cash equivalents | 4,190 | 3,825 |
Depreciation and amortization | 784 | 982 |
Deferred income taxes | $ (66) | $ (308) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Common stock, par value | Additional paid-in capital | Retained earnings (Accumulated deficit): | Accumulated other comprehensive loss: | Treasury Stock, Common |
Beginning balance at Dec. 31, 2022 | $ 16 | $ 58,005 | $ (131) | $ (41) | $ (3,099) | |
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Common stock issued under employee equity plans | 4 | |||||
Stock-based compensation | 309 | |||||
Issuance of common stock warrants | 13 | |||||
Repurchases of common stock | (242) | |||||
Payment, Tax Withholding, Share-Based Payment Arrangement | $ 21 | (21) | ||||
Net income (loss) | (139) | (139) | ||||
Other comprehensive income (loss) | 20 | |||||
Ending balance at Apr. 01, 2023 | 54,694 | 16 | 58,331 | (270) | (21) | (3,362) |
Beginning balance at Dec. 30, 2023 | 55,892 | 17 | 59,676 | 723 | (10) | (4,514) |
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Common stock issued under employee equity plans | 6 | |||||
Stock-based compensation | 371 | |||||
Issuance of common stock warrants | 0 | |||||
Repurchases of common stock | 4 | (4) | ||||
Payment, Tax Withholding, Share-Based Payment Arrangement | 129 | (172) | ||||
Net income (loss) | 123 | 123 | ||||
Other comprehensive income (loss) | (18) | |||||
Ending balance at Mar. 30, 2024 | $ 56,198 | $ 17 | $ 60,053 | $ 846 | $ (28) | $ (4,690) |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Mar. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Basis of Presentation. The accompanying unaudited condensed consolidated financial statements of AMD have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. The results of operations for the three months ended March 30, 2024 shown in this report are not necessarily indicative of results to be expected for the full year ending December 28, 2024 or any other future period. In the opinion of the Company’s management, the information contained herein reflects all adjustments necessary for a fair presentation of the Company’s results of operations, financial position, cash flows and stockholders’ equity. All such adjustments are of a normal, recurring nature. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended December 30, 2023. Certain immaterial prior period amounts have been reclassified to conform to current period presentation. The Company uses a 52- or 53-week fiscal year ending on the last Saturday in December. The three months ended March 30, 2024 and April 1, 2023 each consisted of 13 weeks. Use of Estimates. The preparation of consolidated financial statements in conformity with 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 judgment include, but are not limited to, revenue allowances, inventory valuation, valuation of goodwill, long-lived and intangible assets, and income taxes. Significant Accounting Policies. |
Related Parities - Equity Joint
Related Parities - Equity Joint Ventures | 3 Months Ended |
Mar. 30, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Related Parities - Equity Joint Ventures | Related Parties — Equity Joint Ventures ATMP Joint Ventures The Company holds a 15% equity interest in two joint ventures (collectively, the ATMP JV) with affiliates of Tongfu Microelectronics Co., Ltd, a Chinese joint stock company. The Company has no obligation to fund the ATMP JV. 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. The ATMP JV provides assembly, testing, marking and packaging (ATMP) services to the Company. The Company assists the ATMP JV in its management of certain raw material inventory. The purchases from and resales to the ATMP JV of inventory under the Company’s inventory management program are reported within purchases and resales with the ATMP JV and do not impact the Company’s condensed consolidated statements of operations. The Company’s purchases from the ATMP JV during the three months ended March 30, 2024 and April 1, 2023 amounted to $450 million and $367 million, respectively. As of March 30, 2024 and December 30, 2023, the amounts payable to the ATMP JV were $438 million and $363 million, respectively, and are included in Payables to related parties on the Company’s condensed consolidated balance sheets. The Company’s resales to the ATMP JV during the three months ended March 30, 2024 and April 1, 2023 amounted to $40 million and $1 million, respectively. As of March 30, 2024 and December 30, 2023, the Company had receivables from the ATMP JV of $31 million and $9 million, respectively, included in Receivables from related parties on the Company’s condensed consolidated balance sheets. During the three months ended March 30, 2024 and April 1, 2023, the Company recorded a gain of $7 million and $1 million, respectively, in Equity income in investee on its condensed consolidated statements of operations, respectively. As of March 30, 2024 and December 30, 2023, the carrying value of the Company’s investment in the ATMP JV was $106 million and $99 million, respectively. THATIC Joint Ventures |
Debt and Revolving Facility
Debt and Revolving Facility | 3 Months Ended |
Mar. 30, 2024 | |
Debt Disclosure [Abstract] | |
Debt and Revolving Facility | Debt and Revolving Credit Facility Debt The Company’s total debt as of March 30, 2024 and December 30, 2023 consisted of the following: March 30, December 30, (In millions) 2.95% Senior Notes Due 2024 (2.95% Notes) $ 750 $ 750 2.375% Senior Notes Due 2030 (2.375% Notes) 750 750 3.924% Senior Notes Due 2032 (3.924% Notes) 500 500 4.393% Senior Notes Due 2052 (4.393% Notes) 500 500 Total debt (principal amount) 2,500 2,500 Unamortized debt premium, discount and issuance costs, net (32) (32) Total debt (net) 2,468 2,468 Less: current portion of long-term debt and related unamortized debt premium and issuance costs (750) (751) Total long-term debt $ 1,718 $ 1,717 2.95% Senior Notes Due 2024 and 2.375% Senior Notes Due 2030 The 2.95% Notes and 2.375% Notes are general unsecured senior obligations of the Company with semi-annual fixed interest payments due on June 1 and December 1. 3.924% Senior Notes Due 2032 and 4.393% Senior Notes Due 2052 The 3.924% Notes and 4.393% Notes are general unsecured senior obligations of the Company, semi-annual fixed interest payments due on June 1 and December 1. The 3.924% and 4.393% Notes are governed by the terms of an indenture dated June 9, 2022 between the Company and US Bank Trust Company, National Association as trustee. The Company may redeem some or all of the 3.924% Notes and 4.393% Notes prior to March 1, 2032 and December 1, 2051, respectively, at a price equal to the greater of the present value of the principal amount and future interest through the maturity of the 3.924% Notes or 4.393% Notes or 100% of the principal amount plus accrued and unpaid interest. Holders have the right to require the Company to repurchase all or a portion of the 3.924% Notes or 4.393% Notes in the event that the Company undergoes a change of control as defined in the indenture, at a repurchase price of 101% of the principal amount plus accrued and unpaid interest. Additionally, an event of default may result in the acceleration of the maturity of the 3.924% Notes and 4.393% Notes. Future Debt Payment Obligations As of March 30, 2024, the Company’s future principal debt payment obligations were as follows: Fiscal Year (In millions) Remainder of 2024 $ 750 2025-2028 — 2029 and thereafter 1,750 Total $ 2,500 Revolving Credit Facility The Company has $3.0 billion available under a revolving credit agreement that expires on April 29, 2027 (Revolving Credit Agreement). As of March 30, 2024 and December 30, 2023, the Company had no outstanding borrowings under the Revolving Credit Agreement. Revolving loans under the Revolving Credit Agreement can be either Secure Overnight Financing Rate (SOFR) Loans or Base Rate Loans (each as defined in the Revolving Credit Agreement) at the Company's option. Each SOFR Loan will bear interest at a rate per annum equal to the applicable SOFR plus a margin between 0.625% and 1.250%. Each Base Rate Loan will bear interest equal to the Base Rate plus a margin between 0.000% and 0.250%. The Revolving Credit Agreement also contains a sustainability-linked pricing component which provides for interest rate and facility fee reductions or increases based on the Company meeting or missing targets related to environmental sustainability, specifically greenhouse gas emissions. The Revolving Credit Agreement contains customary representations and warranties, affirmative and negative covenants, and events of default applicable to the Company and its subsidiaries. As of March 30, 2024, the Company was in compliance with these covenants. Commercial Paper On November 3, 2022, the Company established a commercial paper program, under which the Company may issue unsecured commercial paper notes up to a maximum principal amount outstanding at any time of $3.0 billion with a maturity of up to 397 days from the date of issue. The commercial paper will be sold at a discount from par or, alternatively, will be sold at par and bear interest at rates that will vary based on market conditions at the time of issuance. During the three months ended March 30, 2024 and April 1, 2023, the Company did not issue any commercial paper under the program and as of March 30, 2024 and December 30, 2023, the Company had no commercial paper outstanding. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Fair Value Disclosures | Financial Instruments Fair Value Measurements The Company’s financial instruments are measured and recorded at fair value on a recurring basis, except for non-marketable equity investments in privately-held companies. These equity investments are generally accounted for under the measurement alternative, defined as cost, less impairments, adjusted for subsequent observable price changes and are periodically assessed for impairment when events or circumstances indicate that a decline in value may have occurred. Financial Instruments Recorded at Fair Value on a Recurring Basis March 30, 2024 December 30, 2023 (In millions) Level 1 Level 2 Total Level 1 Level 2 Total Cash equivalents Money market funds $ 1,051 $ — $ 1,051 $ 969 $ — $ 969 Corporate debt securities — 1,472 1,472 — 753 753 U.S. government and agency securities 573 — 573 1,252 — 1,252 Non-U.S. government and agency securities — 70 70 — 135 135 Time deposits and certificates of deposits — 166 166 — 205 205 Short-term investments Corporate debt securities — 526 526 — 506 506 Time deposits and certificates of deposits — 10 10 — 9 9 Asset-backed and mortgage-backed securities — 33 33 — 34 34 U.S. government and agency securities 1,158 41 1,199 1,209 28 1,237 Non-U.S. government and agency securities — 77 77 — 54 54 Other non-current assets Deferred compensation plan investments 147 — 147 133 — 133 Total assets measured at fair value $ 2,929 $ 2,395 $ 5,324 $ 3,563 $ 1,724 $ 5,287 Deferred compensation plan investments are primarily mutual fund investments held in a Rabbi trust established to maintain the Company’s executive deferred compensation plan. The following is a summary of cash equivalents and short-term investments: March 30, 2024 December 30, 2023 Cost/ Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Cost/ Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair (in millions) (in millions) Asset-backed and mortgage-backed securities $ 35 $ — $ (2) $ 33 $ 35 $ — $ (2) $ 33 Corporate debt securities 1,998 — — 1,998 1,259 — — 1,259 Money market funds 1,051 — — 1,051 969 — — 969 Time deposits and certificates of deposits 176 — — 176 214 — — 214 U.S. government and agency securities 1,772 — — 1,772 2,487 3 — 2,490 Non-U.S. government and agency securities 147 — — 147 189 — — 189 $ 5,179 $ — $ (2) $ 5,177 $ 5,153 $ 3 $ (2) $ 5,154 As of March 30, 2024 and December 30, 2023, the Company did not have material available-for-sale debt securities which had been in a continuous unrealized loss position of more than twelve months. The contractual maturities of cash equivalents and investments classified as available-for-sale are as follows: March 30, 2024 December 30, 2023 Amortized Cost Fair Value Amortized Cost Fair Value (In millions) (In millions) Due within 1 year $ 3,638 $ 3,637 $ 3,792 $ 3,792 Due in 1 year through 5 years 459 459 361 364 Due in 5 years and later 31 30 32 30 $ 4,128 $ 4,126 $ 4,185 $ 4,186 Financial Instruments Not Recorded at Fair Value The Company carries its financial instruments at fair value except for its debt. The carrying amounts and estimated fair values of the Company’s debt are as follows: March 30, 2024 December 30, 2023 Carrying Estimated Carrying Estimated (In millions) (In millions) Current portion of long-term debt, net $ 750 $ 747 $ 751 $ 741 Long-term debt, net of current portion $ 1,718 $ 1,570 $ 1,717 $ 1,630 The estimated fair value of the Company’s long-term debt is based on Level 2 inputs of quoted prices for the Company’s debt and comparable instruments in inactive markets. The fair value of the Company’s accounts receivable, accounts payable and other short-term obligations approximate their carrying value based on existing terms. Financial Instruments Measured at Fair Value on a Non-Recurring Basis The Company’s investments in non-marketable securities in privately-held companies are recorded using a measurement alternative that adjusts the securities to fair value when the Company recognizes an observable price adjustment or an impairment. As of March 30, 2024 and December 30, 2023, the Company had non-marketable securities in privately-held companies of $156 million and $155 million, respectively, that are recorded under Other non-current assets in the balance sheet. Impairment losses or observable price adjustments were not material during the three months ended March 30, 2024 and April 1, 2023. Hedging Transactions and Derivative Financial Instruments Foreign Currency Forward Contracts Designated as Accounting Hedges The Company enters into foreign currency forward contracts to hedge its exposure to foreign currency exchange rate risk related to future forecasted transactions denominated in currencies other than the U.S. Dollar. These contracts generally mature within 24 months and are designated as accounting hedges. As of March 30, 2024 and December 30, 2023, the notional value of the Company’s outstanding foreign currency forward contracts designated as cash flow hedges was $2.2 billion and $2.4 billion, respectively. The fair value of these contracts, recorded as a liability, was $14 million as of March 30, 2024 and as an asset of $6 million as of December 30, 2023. Foreign Currency Forward Contracts Not Designated as Accounting Hedges The Company also enters into foreign currency forward contracts to reduce the short-term effects of foreign currency fluctuations on certain receivables or payables denominated in currencies other than the U.S. Dollar. These forward contracts generally mature within 3 months and are not designated as accounting hedges. As of March 30, 2024 and December 30, 2023, the notional value of these outstanding contracts was $803 million and $568 million, respectively. The fair value of these contracts was not material as of March 30, 2024 and December 30, 2023. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 30, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table sets forth the components of basic and diluted earnings per share: Three Months Ended March 30, April 1, (In millions, except per share amounts) Numerator Net income (loss) for basic earnings per share $ 123 $ (139) Denominator Basic weighted average shares 1,617 1,611 Potentially dilutive shares from employee equity plans 22 — Diluted weighted average shares 1,639 1,611 Earnings (loss) per share: Basic $ 0.08 $ (0.09) Diluted $ 0.07 $ (0.09) |
Common Stock and Employee Equit
Common Stock and Employee Equity Plans | 3 Months Ended |
Mar. 30, 2024 | |
Equity [Abstract] | |
Common Stock and Employee Equity Plans | Common Stock and Employee Equity Plans Common Stock Shares of common stock outstanding were as follows: Three Months Ended March 30, April 1, (In millions) Balance, beginning of period 1,616 1,612 Common stock issued under employee equity plans 3 1 Common stock repurchases for tax withholding on equity awards (1) (1) Repurchases of common stock — (3) Balance, end of period 1,618 1,609 Stock Repurchase Program The Company has an approved stock repurchase program authorizing repurchases of up to $12 billion of the Company’s common stock (Repurchase Program). During the three months ended March 30, 2024, the Company returned $4 million to shareholders through the repurchase of its common stock under the Repurchase Program. As of March 30, 2024, $5.6 billion remains available for future stock repurchases under the Repurchase Program. The Repurchase Program does not obligate the Company to acquire any common stock, has no termination date and may be suspended or discontinued at any time. Stock-based Compensation Stock-based compensation expense recorded in the condensed consolidated statements of operations was as follows: Three Months Ended March 30, April 1, (In millions) Cost of sales $ 6 $ 8 Research and development 279 214 Marketing, general and administrative 86 87 Total $ 371 $ 309 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company determines its income taxes for interim reporting periods by applying the Company’s estimated annual effective tax rate to the year-to-date results, adjusted for tax items discrete to each period. For the three months ended March 30, 2024, the Company recorded an income tax benefit of $52 million representing an effective tax rate of (73.2)%. The difference between the U.S. federal statutory tax rate of 21% and the Company's estimated annual effective tax rate was primarily due to the income tax benefit from foreign-derived intangible income (FDII) and research and development (R&D) tax credits. In addition, the tax benefit reflected discrete income tax benefits of $61 million, primarily related to stock-based compensation. For the three months ended April 1, 2023, the Company recorded an income tax provision of $13 million representing an effective tax rate of (10.3)%. The difference between the U.S. federal statutory tax rate of 21% and the Company's estimated annual effective tax rate was primarily due to a higher mix of income taxed in lower tax rate jurisdictions, R&D tax credits, and beneficial rate impact from FDII tax benefit. In addition, the tax provision reflected discrete tax expense related to interest and penalties accrued for uncertain tax position. As of March 30, 2024 and December 30, 2023, the Company had long-term income tax liabilities of $1.5 billion and $1.6 billion |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 30, 2024 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting Management, including the Chief Operating Decision Maker (CODM), who is the Company’s Chief Executive Officer, reviews and assesses operating performance using segment net revenue and operating income (loss). These performance measures include the allocation of expenses to the reportable segments based on management’s judgment. The Company’s four reportable segments are: • the Data Center segment, which primarily includes server microprocessors (CPUs), graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), Smart Network Interface Cards (SmartNICs), Artificial Intelligence (AI) accelerators and Adaptive System-on-Chip (SoC) products for data centers; • the Client segment, which primarily includes CPUs, APUs, and chipsets for desktop, notebook and handheld personal computers; • the Gaming segment, which primarily includes discrete GPUs, and semi-custom SoC products and development services; and • the Embedded segment, which primarily includes embedded CPUs, GPUs, APUs, FPGAs, System on Modules (SOMs), and Adaptive SoC products. From time to time, the Company may also sell or license portions of its IP 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 the CODM does not consider these expenses and credits in evaluating the performance of the reportable segments. This category primarily includes amortization of acquisition-related intangibles, employee stock-based compensation expense, inventory loss at contract manufacturer, acquisition-related and other costs, and licensing gain. Acquisition-related and other costs primarily include transaction costs, purchase price adjustments for inventory, certain compensation charges, contract termination and workforce rebalancing charges. The following table provides a summary of net revenue and operating income (loss) by segment: Three Months Ended March 30, April 1, (In millions) Net revenue: Data Center $ 2,337 $ 1,295 Client 1,368 739 Gaming 922 1,757 Embedded 846 1,562 Total net revenue $ 5,473 $ 5,353 Operating income (loss): Data Center $ 541 $ 148 Client 86 (172) Gaming 151 314 Embedded 342 798 All Other (1) (1,084) (1,233) Total operating income (loss) $ 36 $ (145) (1) For the three months ended March 30, 2024, all other operating losses primarily included $622 million of amortization of acquisition-related intangibles, $371 million of stock-based compensation expense, $65 million of inventory loss at contract manufacturer and $39 million of acquisition-related and other costs. For the three months ended April 1, 2023, all other operating losses primarily included $823 million of amortization of acquisition-related intangibles, $309 million of stock-based compensation expense and $111 million of acquisition-related and other costs. |
Contingencies
Contingencies | 3 Months Ended |
Mar. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Commitments and Contingencies Commitments The Company’s purchase commitments primarily include obligations to purchase wafers and substrates from third parties. These purchase obligations were made under noncancellable purchase orders or contractual obligations requiring minimum purchases for which cancellation would lead to significant penalties. Purchase commitments also include future payments related to certain software, technology and IP licenses. Total future unconditional purchase commitments as of March 30, 2024 were as follows: Fiscal Year (In millions) Remainder of 2024 $ 3,278 2025 348 2026 182 2027 44 2028 46 2029 and thereafter 94 Total unconditional purchase commitments $ 3,992 On an ongoing basis, the Company works with suppliers on timing of payments and deliveries of purchase commitments, taking into account business conditions. Contingencies During the quarterly period ended March 30, 2024, there were no material legal proceedings. 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 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. |
The Company
The Company | 3 Months Ended |
Mar. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company | The CompanyAdvanced Micro Devices, Inc. is a global semiconductor company. References herein to AMD or the Company mean Advanced Micro Devices, Inc. and its consolidated subsidiaries. AMD’s products include x86 microprocessors (CPUs) and graphics processing units (GPUs), as standalone devices or as incorporated into accelerated processing units (APUs), chipsets, data center and professional GPUs, embedded processors, semi-custom System-on-Chip (SoC) products, microprocessor and SoC development services and technology, data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), System on Modules (SOMs), Smart Network Interface Cards (SmartNICs), Artificial Intelligence (AI) Accelerators and Adaptive SoC products. From time to time, the Company may also sell or license portions of its intellectual property (IP) portfolio. |
Intangible Assets, Goodwill and
Intangible Assets, Goodwill and Other | 3 Months Ended |
Mar. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure | Acquisition-related Intangible Assets Acquisition-related intangibles were as follows: March 30, 2024 December 30, 2023 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (In millions) (In millions) Developed technology $ 13,390 $ (1,815) $ 11,575 $ 13,390 $ (1,583) $ 11,807 Customer relationships 12,324 (4,127) 8,197 12,324 (3,755) 8,569 Customer backlog 809 (809) — 809 (809) — Corporate trade name 65 (65) — 65 (65) — Product trademarks 914 (165) 749 914 (147) 767 Identified intangible assets subject to amortization 27,502 (6,981) 20,521 27,502 (6,359) 21,143 In-process research and development (IPR&D) not subject to amortization 220 — 220 220 — 220 Total acquisition-related intangible assets $ 27,722 $ (6,981) $ 20,741 $ 27,722 $ (6,359) $ 21,363 Developed technology and customer relationships were acquired primarily from the Xilinx acquisition on February 14, 2022. Acquisition-related intangible amortization expense was $622 million and $823 million for the three months ended March 30, 2024 and April 1, 2023, respectively. Based on the carrying value of acquisition-related intangibles recorded as of March 30, 2024, and assuming no subsequent impairment of the underlying assets, the estimated annual amortization expense for acquisition-related intangibles is expected to be as follows: Fiscal Year (In millions) Remainder of 2024 $ 1,749 2025 2,145 2026 2,034 2027 1,922 2028 1,846 2029 and thereafter 10,825 Total $ 20,521 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Pay vs Performance Disclosure | ||
Net income (loss) | $ 123 | $ (139) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 30, 2024 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On March 7, 2024, Jean Hu, Executive Vice President, Chief Financial Officer and Treasurer, adopted a Rule 10b5-1 trading arrangement that is intended to satisfy the affirmative defense of Rule 10b5-1(c) for the sale of up to 40,000 shares of the Company’s common stock until March 7, 2025. |
Name | Jean Hu |
Title | Executive Vice President, Chief Financial Officer and Treasurer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 7, 2024 |
Termination Date | March 7, 2025 |
Aggregate Available | 40,000 |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation and Significant Accounting Policies Basis of Presentation. The accompanying unaudited condensed consolidated financial statements of AMD have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. The results of operations for the three months ended March 30, 2024 shown in this report are not necessarily indicative of results to be expected for the full year ending December 28, 2024 or any other future period. In the opinion of the Company’s management, the information contained herein reflects all adjustments necessary for a fair presentation of the Company’s results of operations, financial position, cash flows and stockholders’ equity. All such adjustments are of a normal, recurring nature. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended December 30, 2023. Certain immaterial prior period amounts have been reclassified to conform to current period presentation. The Company uses a 52- or 53-week fiscal year ending on the last Saturday in December. The three months ended March 30, 2024 and April 1, 2023 each consisted of 13 weeks. Use of Estimates. The preparation of consolidated financial statements in conformity with 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 judgment include, but are not limited to, revenue allowances, inventory valuation, valuation of goodwill, long-lived and intangible assets, and income taxes. Significant Accounting Policies. There have been no material changes to the Company’s significant accounting policies in Note 2 - Basis of Presentation and Significant Accounting Policies, of the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 30, 2023. |
Fiscal Period | The Company uses a 52- or 53-week fiscal year ending on the last Saturday in December. The three months ended March 30, 2024 and April 1, 2023 each consisted of 13 weeks. Use of Estimates. The preparation of consolidated financial statements in conformity with 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 judgment include, but are not limited to, revenue allowances, inventory valuation, valuation of goodwill, long-lived and intangible assets, and income taxes. |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Balance Sheet Related Disclosures [Abstract] | |
Inventories | Inventories March 30, December 30, (In millions) Raw materials $ 292 $ 279 Work in process 3,376 3,260 Finished goods 984 812 Total inventories $ 4,652 $ 4,351 |
Property and Equipment, Net | Property and Equipment, net March 30, December 30, (In millions) Land, building and leasehold improvements $ 829 $ 821 Equipment 2,456 2,346 Construction in progress 223 209 Property and equipment, gross 3,508 3,376 Accumulated depreciation (1,884) (1,787) Total property and equipment, net $ 1,624 $ 1,589 |
Accrued Liabilities | Accrued Liabilities March 30, December 30, (In millions) Accrued marketing programs $ 761 $ 827 Accrued compensation and benefits 826 884 Customer program liabilities 936 544 Other accrued liabilities 921 827 Total accrued liabilities $ 3,444 $ 3,082 |
Debt and Revolving Facility (Ta
Debt and Revolving Facility (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company’s total debt as of March 30, 2024 and December 30, 2023 consisted of the following: March 30, December 30, (In millions) 2.95% Senior Notes Due 2024 (2.95% Notes) $ 750 $ 750 2.375% Senior Notes Due 2030 (2.375% Notes) 750 750 3.924% Senior Notes Due 2032 (3.924% Notes) 500 500 4.393% Senior Notes Due 2052 (4.393% Notes) 500 500 Total debt (principal amount) 2,500 2,500 Unamortized debt premium, discount and issuance costs, net (32) (32) Total debt (net) 2,468 2,468 Less: current portion of long-term debt and related unamortized debt premium and issuance costs (750) (751) Total long-term debt $ 1,718 $ 1,717 |
Schedule of Maturities of Long-term Debt | Future Debt Payment Obligations As of March 30, 2024, the Company’s future principal debt payment obligations were as follows: Fiscal Year (In millions) Remainder of 2024 $ 750 2025-2028 — 2029 and thereafter 1,750 Total $ 2,500 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | Financial Instruments Recorded at Fair Value on a Recurring Basis March 30, 2024 December 30, 2023 (In millions) Level 1 Level 2 Total Level 1 Level 2 Total Cash equivalents Money market funds $ 1,051 $ — $ 1,051 $ 969 $ — $ 969 Corporate debt securities — 1,472 1,472 — 753 753 U.S. government and agency securities 573 — 573 1,252 — 1,252 Non-U.S. government and agency securities — 70 70 — 135 135 Time deposits and certificates of deposits — 166 166 — 205 205 Short-term investments Corporate debt securities — 526 526 — 506 506 Time deposits and certificates of deposits — 10 10 — 9 9 Asset-backed and mortgage-backed securities — 33 33 — 34 34 U.S. government and agency securities 1,158 41 1,199 1,209 28 1,237 Non-U.S. government and agency securities — 77 77 — 54 54 Other non-current assets Deferred compensation plan investments 147 — 147 133 — 133 Total assets measured at fair value $ 2,929 $ 2,395 $ 5,324 $ 3,563 $ 1,724 $ 5,287 |
Summary of Investment Holdings, Schedule of Investments | The following is a summary of cash equivalents and short-term investments: March 30, 2024 December 30, 2023 Cost/ Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Cost/ Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair (in millions) (in millions) Asset-backed and mortgage-backed securities $ 35 $ — $ (2) $ 33 $ 35 $ — $ (2) $ 33 Corporate debt securities 1,998 — — 1,998 1,259 — — 1,259 Money market funds 1,051 — — 1,051 969 — — 969 Time deposits and certificates of deposits 176 — — 176 214 — — 214 U.S. government and agency securities 1,772 — — 1,772 2,487 3 — 2,490 Non-U.S. government and agency securities 147 — — 147 189 — — 189 $ 5,179 $ — $ (2) $ 5,177 $ 5,153 $ 3 $ (2) $ 5,154 |
Investments Classified by Contractual Maturity Date | The contractual maturities of cash equivalents and investments classified as available-for-sale are as follows: March 30, 2024 December 30, 2023 Amortized Cost Fair Value Amortized Cost Fair Value (In millions) (In millions) Due within 1 year $ 3,638 $ 3,637 $ 3,792 $ 3,792 Due in 1 year through 5 years 459 459 361 364 Due in 5 years and later 31 30 32 30 $ 4,128 $ 4,126 $ 4,185 $ 4,186 |
Financial Instruments Not Recorded at Fair Value | The Company carries its financial instruments at fair value except for its debt. The carrying amounts and estimated fair values of the Company’s debt are as follows: March 30, 2024 December 30, 2023 Carrying Estimated Carrying Estimated (In millions) (In millions) Current portion of long-term debt, net $ 750 $ 747 $ 751 $ 741 Long-term debt, net of current portion $ 1,718 $ 1,570 $ 1,717 $ 1,630 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Earnings Per Share [Abstract] | |
Components of Basic and Diluted Earnings (Loss) Per Share | The following table sets forth the components of basic and diluted earnings per share: Three Months Ended March 30, April 1, (In millions, except per share amounts) Numerator Net income (loss) for basic earnings per share $ 123 $ (139) Denominator Basic weighted average shares 1,617 1,611 Potentially dilutive shares from employee equity plans 22 — Diluted weighted average shares 1,639 1,611 Earnings (loss) per share: Basic $ 0.08 $ (0.09) Diluted $ 0.07 $ (0.09) |
Common Stock and Employee Equ_2
Common Stock and Employee Equity Plans (Tables) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Equity [Abstract] | ||
Schedule of Common Shares Outstanding | Common Stock Shares of common stock outstanding were as follows: Three Months Ended March 30, April 1, (In millions) Balance, beginning of period 1,616 1,612 Common stock issued under employee equity plans 3 1 Common stock repurchases for tax withholding on equity awards (1) (1) Repurchases of common stock — (3) Balance, end of period 1,618 1,609 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount | Stock-based Compensation Stock-based compensation expense recorded in the condensed consolidated statements of operations was as follows: Three Months Ended March 30, April 1, (In millions) Cost of sales $ 6 $ 8 Research and development 279 214 Marketing, general and administrative 86 87 Total $ 371 $ 309 | |
Payments for Repurchase of Common Stock | $ 4 | $ 241 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Segment Reporting [Abstract] | |
Summary of Net Revenue and Operating Income (Loss) by Segment | The following table provides a summary of net revenue and operating income (loss) by segment: Three Months Ended March 30, April 1, (In millions) Net revenue: Data Center $ 2,337 $ 1,295 Client 1,368 739 Gaming 922 1,757 Embedded 846 1,562 Total net revenue $ 5,473 $ 5,353 Operating income (loss): Data Center $ 541 $ 148 Client 86 (172) Gaming 151 314 Embedded 342 798 All Other (1) (1,084) (1,233) Total operating income (loss) $ 36 $ (145) (1) For the three months ended March 30, 2024, all other operating losses primarily included $622 million of amortization of acquisition-related intangibles, $371 million of stock-based compensation expense, $65 million of inventory loss at contract manufacturer and $39 million of acquisition-related and other costs. For the three months ended April 1, 2023, all other operating losses primarily included $823 million of amortization of acquisition-related intangibles, $309 million of stock-based compensation expense and $111 million of acquisition-related and other costs. |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Recorded Unconditional Purchase Obligations | Total future unconditional purchase commitments as of March 30, 2024 were as follows: Fiscal Year (In millions) Remainder of 2024 $ 3,278 2025 348 2026 182 2027 44 2028 46 2029 and thereafter 94 Total unconditional purchase commitments $ 3,992 |
Intangible Assets, Goodwill a_2
Intangible Assets, Goodwill and Other (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Acquired Indefinite-lived Intangible Assets by Major Class | March 30, 2024 December 30, 2023 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (In millions) (In millions) Developed technology $ 13,390 $ (1,815) $ 11,575 $ 13,390 $ (1,583) $ 11,807 Customer relationships 12,324 (4,127) 8,197 12,324 (3,755) 8,569 Customer backlog 809 (809) — 809 (809) — Corporate trade name 65 (65) — 65 (65) — Product trademarks 914 (165) 749 914 (147) 767 Identified intangible assets subject to amortization 27,502 (6,981) 20,521 27,502 (6,359) 21,143 In-process research and development (IPR&D) not subject to amortization 220 — 220 220 — 220 Total acquisition-related intangible assets $ 27,722 $ (6,981) $ 20,741 $ 27,722 $ (6,359) $ 21,363 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Based on the carrying value of acquisition-related intangibles recorded as of March 30, 2024, and assuming no subsequent impairment of the underlying assets, the estimated annual amortization expense for acquisition-related intangibles is expected to be as follows: Fiscal Year (In millions) Remainder of 2024 $ 1,749 2025 2,145 2026 2,034 2027 1,922 2028 1,846 2029 and thereafter 10,825 Total $ 20,521 |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Details) - USD ($) $ in Millions | Mar. 30, 2024 | Dec. 30, 2023 |
Disaggregation of Revenue [Line Items] | ||
Deferred tax liabiilty | $ 1,199 | $ 1,202 |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Mar. 30, 2024 | Dec. 30, 2023 |
Accounts Receivable, Net | ||
Unbilled contracts receivable | $ 1,600 | $ 1,100 |
Inventories | ||
Raw materials | 292 | 279 |
Work in process | 3,376 | 3,260 |
Finished goods | 984 | 812 |
Inventories, Total | 4,652 | 4,351 |
Property and Equipment, Net | ||
Land, building and leasehold improvements | 829 | 821 |
Equipment | 2,456 | 2,346 |
Construction in progress | 223 | 209 |
Property and equipment, gross | 3,508 | 3,376 |
Accumulated depreciation | (1,884) | (1,787) |
Total property and equipment, net | 1,624 | 1,589 |
Accrued Liabilities | ||
Accrued compensation and benefits | 826 | 884 |
Customer program liabilities | 936 | 544 |
Accrued marketing programs | 761 | 827 |
Other accrued liabilities | 921 | 827 |
Total accrued liabilities | 3,444 | 3,082 |
Prepaid Expenses and Other Current Assets [Line Items] | ||
Prepaid expenses and other current assets | 1,328 | 1,259 |
Other current liabilities | $ 424 | $ 438 |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information - Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Balance Sheet Related Disclosures [Abstract] | ||
Revenue allocated to remaining performance obligations that are unsatisfied or partially unsatisfied | $ 113 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue allocated to remaining performance obligations that are unsatisfied or partially unsatisfied | 113 | |
Amortization of Intangible Assets | 622 | $ 823 |
Cost of sales | ||
Balance Sheet Related Disclosures [Abstract] | ||
Revenue allocated to remaining performance obligations that are unsatisfied or partially unsatisfied | 67 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue allocated to remaining performance obligations that are unsatisfied or partially unsatisfied | $ 67 | |
Transferred over Time | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Percentage of Revenue to Total Revenue | 16% | 29% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-03-26 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Performance obligations expected to be satisfied, expected timing | 12 months |
Related Parities - Equity Joi_2
Related Parities - Equity Joint Ventures (Details) $ in Millions | 3 Months Ended | |||
Mar. 30, 2024 USD ($) joint_venture | Apr. 01, 2023 USD ($) | Dec. 30, 2023 USD ($) | Apr. 29, 2022 USD ($) | |
Summary of Investment Holdings [Line Items] | ||||
Equity income in investee | $ 7 | $ 1 | ||
Carrying value of investment | 106 | $ 99 | ||
Other current liabilities | 424 | 438 | ||
Receivables from related parties | 31 | 9 | ||
Amortization of Intangible Assets | 622 | 823 | ||
Share-based compensation expense | 371 | 309 | ||
Inventory Write-down | 65 | 0 | ||
Revolving Credit Facility [Member] | Secured Revolving Credit Facility | ||||
Summary of Investment Holdings [Line Items] | ||||
Maximum borrowing capacity | $ 3,000 | |||
Segment Reporting, Reconciling Item, Corporate Nonsegment | ||||
Summary of Investment Holdings [Line Items] | ||||
Business Combination, Acquisition Related Costs | 39 | |||
Inventory Write-down | $ 65 | |||
Joint Venture | ATMP JV | ||||
Summary of Investment Holdings [Line Items] | ||||
Ownership percentage | 15% | |||
Number of joint ventures | joint_venture | 2 | |||
Purchases from related party | $ 450 | 367 | ||
Resale to ATMP JV | 40 | 1 | ||
Equity income in investee | 7 | 1 | ||
Carrying value of investment | 106 | 99 | ||
Estimated license fees expected to be earned over several years pursuant to a licensing agreement | 13 | $ 10 | ||
Other current liabilities | 438 | 363 | ||
Receivables from related parties | $ 31 | 9 | ||
Joint Venture | THATIC JV | ||||
Summary of Investment Holdings [Line Items] | ||||
Number of joint ventures | joint_venture | 2 | |||
Carrying value of investment | $ 0 | $ 0 |
Debt and Revolving Facility - S
Debt and Revolving Facility - Schedule of Debt (Details) - USD ($) $ in Millions | Mar. 30, 2024 | Dec. 30, 2023 |
Debt Instrument [Line Items] | ||
Unamortized debt premium, discount and issuance costs, net | $ (32) | $ (32) |
Total debt (net) | 2,468 | 2,468 |
Long-Term Debt, Current Maturities | 750 | 751 |
Long-term debt, net of current portion | 1,718 | 1,717 |
2.95% Senior Notes due 2024 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Total debt (principal amount) | 750 | 750 |
2.375% Senior Notes due 2030 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Total debt (principal amount) | 750 | 750 |
Principal Balance Due | ||
Debt Instrument [Line Items] | ||
Total debt (principal amount) | 2,500 | 2,500 |
Long-Term Debt, Maturity, Year Two | 750 | |
Long-Term Debt, Maturity, Year Three | 0 | |
Long-Term Debt, Maturity, after Year Five | $ 1,750 | |
3.924% Senior Note due 2032 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 3.924% | |
Total debt (principal amount) | $ 500 | 500 |
4.393% Senior Notes due 2052 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4.393% | |
Total debt (principal amount) | $ 500 | $ 500 |
Debt and Revolving Facility - N
Debt and Revolving Facility - Narrative (Details) - USD ($) $ in Millions | Apr. 29, 2022 | Mar. 30, 2024 | Dec. 30, 2023 | Nov. 03, 2022 |
2.95% Senior Notes due 2024 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Total debt (principal amount) | $ 750 | $ 750 | ||
2.375% Senior Notes due 2030 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Total debt (principal amount) | $ 750 | 750 | ||
4.393% Senior Notes due 2052 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 4.393% | |||
Total debt (principal amount) | $ 500 | 500 | ||
3.924% Senior Note due 2032 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 3.924% | |||
Total debt (principal amount) | $ 500 | $ 500 | ||
Secured Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Maximum | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | |||
Secured Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Minimum | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 0.625% | |||
Secured Revolving Credit Facility | Base Rate | Maximum | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | |||
Secured Revolving Credit Facility | Base Rate | Minimum | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 0% | |||
Secured Revolving Credit Facility | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 3,000 | |||
Commercial Paper [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 3,000 |
Debt and Revolving Facility Pay
Debt and Revolving Facility Payment Due (Details) - Principal Balance Due $ in Millions | Mar. 30, 2024 USD ($) |
Debt Instrument [Line Items] | |
Long-Term Debt, Maturity, after Year Five | $ 1,750 |
Long-Term Debt, Maturity, Year Two | 750 |
Long-Term Debt, Maturity, Year Three | $ 0 |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) - USD ($) $ in Millions | Mar. 30, 2024 | Dec. 30, 2023 |
Other Fair Value Disclosure [Line Items] | ||
Short-Term Investments | $ 1,845 | $ 1,840 |
Equity Securities without Readily Determinable Fair Value, Amount | 156 | 155 |
Debt Securities, Available-for-sale, Amortized Cost | 5,179 | 5,153 |
Short-term Investments | ||
Other Fair Value Disclosure [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 4,128 | 4,185 |
Foreign Exchange Contract | Cash Flow Hedging | ||
Other Fair Value Disclosure [Line Items] | ||
Derivative Instruments in Hedges, Liabilities, at Fair Value | $ 14 | $ 6 |
Financial Instruments - Schedul
Financial Instruments - Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments not Recorded at Fair Value (Details) - USD ($) $ in Millions | Mar. 30, 2024 | Dec. 30, 2023 |
Other Fair Value Disclosure [Line Items] | ||
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling within One Year, Amortized Cost | $ 3,638 | $ 3,792 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling within One Year, Fair Value | 3,637 | 3,792 |
Debt Securities, Available-for-Sale, Amortized Cost, Maturity, Allocated and Single Maturity Date, after Year One Through Five | 459 | 361 |
Debt Securities, Available-for-Sale, Fair Value, Maturity, Allocated and Single Maturity Date, after Year One Through Five | 459 | 364 |
Debt Securities, Available-for-sale, Amortized Cost | 5,179 | 5,153 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 3 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (2) | (2) |
Debt Securities, Available-for-sale | 5,177 | 5,154 |
Equity Securities without Readily Determinable Fair Value, Amount | 156 | 155 |
Foreign Exchange Contract | Cash Flow Hedging | ||
Other Fair Value Disclosure [Line Items] | ||
Derivative Instruments in Hedges, Liabilities, at Fair Value | 14 | 6 |
Derivative Instruments in Hedges, Liabilities, at Fair Value | 14 | 6 |
Short-term Investments | ||
Other Fair Value Disclosure [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 4,128 | 4,185 |
Debt Securities, Available-for-Sale and Held-to-Maturity, Fair Value | 4,126 | 4,186 |
Available for Sale Securities Maturing in Five Years and Later | ||
Other Fair Value Disclosure [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 31 | 32 |
Debt Securities, Available-for-sale | 30 | 30 |
Carrying Amount | ||
Summary of Investment Holdings [Line Items] | ||
Current portion of long-term debt, net | 750 | 751 |
Notes Payable, Fair Value Disclosure | 1,718 | 1,717 |
Estimated Fair Value | Level 2 | ||
Summary of Investment Holdings [Line Items] | ||
Current portion of long-term debt, net | 747 | 741 |
Notes Payable, Fair Value Disclosure | 1,570 | 1,630 |
Government money market funds | ||
Other Fair Value Disclosure [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 1,051 | 969 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Debt Securities, Available-for-sale | 1,051 | 969 |
Commercial Paper [Member] | ||
Other Fair Value Disclosure [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 1,998 | 1,259 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Debt Securities, Available-for-sale | 1,998 | 1,259 |
US Government Agencies Debt Securities | ||
Other Fair Value Disclosure [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 1,772 | 2,487 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 3 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Debt Securities, Available-for-sale | 1,772 | 2,490 |
Sovereign Debt Securities | ||
Other Fair Value Disclosure [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 147 | 189 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Debt Securities, Available-for-sale | 147 | 189 |
Bank Time Deposits [Member] | ||
Other Fair Value Disclosure [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 176 | 214 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Debt Securities, Available-for-sale | 176 | 214 |
Asset-backed Securities | ||
Other Fair Value Disclosure [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 35 | 35 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (2) | (2) |
Debt Securities, Available-for-sale | $ 33 | $ 33 |
Financial Instruments - Cash, C
Financial Instruments - Cash, Cash Equivalents, and Marketable Securities Fair Value Measurements (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Dec. 30, 2023 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Accrued Income Taxes, Noncurrent | $ 1,500 | $ 1,600 |
Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 5,324 | 5,287 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 2,929 | 3,563 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 2,395 | 1,724 |
Cash and Cash Equivalents | Fair Value, Recurring | Government money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 1,051 | 969 |
Cash and Cash Equivalents | Fair Value, Recurring | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 1,472 | 753 |
Cash and Cash Equivalents | Fair Value, Recurring | US Government Agencies Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 573 | 1,252 |
Cash and Cash Equivalents | Fair Value, Recurring | Bank Time Deposits [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 205 | |
Investments, Fair Value Disclosure | 166 | 205 |
Cash and Cash Equivalents | Fair Value, Recurring | Foreign Government Short-term Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 70 | 135 |
Cash and Cash Equivalents | Fair Value, Recurring | Foreign Government Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 77 | |
Cash and Cash Equivalents | Level 1 | Fair Value, Recurring | Government money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 1,051 | 969 |
Cash and Cash Equivalents | Level 1 | Fair Value, Recurring | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Cash and Cash Equivalents | Level 1 | Fair Value, Recurring | US Government Agencies Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 573 | 1,252 |
Cash and Cash Equivalents | Level 1 | Fair Value, Recurring | Bank Time Deposits [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Investments, Fair Value Disclosure | 0 | 0 |
Cash and Cash Equivalents | Level 1 | Fair Value, Recurring | Foreign Government Short-term Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Cash and Cash Equivalents | Level 1 | Fair Value, Recurring | Foreign Government Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 0 | |
Cash and Cash Equivalents | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring | Government money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Cash and Cash Equivalents | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 1,472 | 753 |
Cash and Cash Equivalents | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring | US Government Agencies Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Cash and Cash Equivalents | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring | Bank Time Deposits [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 166 | 205 |
Investments, Fair Value Disclosure | 166 | 205 |
Cash and Cash Equivalents | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring | Foreign Government Short-term Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 70 | 135 |
Cash and Cash Equivalents | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring | Foreign Government Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 77 | |
Short-term Investments | Fair Value, Recurring | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 526 | 506 |
Short-term Investments | Fair Value, Recurring | US Government Agencies Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 1,199 | 1,237 |
Short-term Investments | Fair Value, Recurring | Bank Time Deposits [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 10 | 9 |
Short-term Investments | Fair Value, Recurring | Asset-backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 33 | 34 |
Short-term Investments | Fair Value, Recurring | Foreign Government Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 54 | |
Short-term Investments | Level 1 | Fair Value, Recurring | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Short-term Investments | Level 1 | Fair Value, Recurring | US Government Agencies Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 1,158 | 1,209 |
Short-term Investments | Level 1 | Fair Value, Recurring | Asset-backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Short-term Investments | Level 1 | Fair Value, Recurring | Foreign Government Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 0 | |
Short-term Investments | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 526 | 506 |
Short-term Investments | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring | US Government Agencies Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 41 | 28 |
Short-term Investments | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring | Bank Time Deposits [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 10 | 9 |
Short-term Investments | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring | Asset-backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 33 | 34 |
Short-term Investments | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring | Foreign Government Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 54 | |
Other Noncurrent Assets | Fair Value, Recurring | us-gaap_FairValueMeasurementsRecurring-Def Comp | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 147 | 133 |
Other Noncurrent Assets | Level 1 | Fair Value, Recurring | us-gaap_FairValueMeasurementsRecurring-Def Comp | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 147 | 133 |
Other Noncurrent Assets | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring | us-gaap_FairValueMeasurementsRecurring-Def Comp | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | $ 0 | 0 |
Foreign Exchange Contract | Cash Flow Hedging | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative, term of contract | 24 months | |
Derivative, notional amount | $ 2,200 | 2,400 |
Foreign Exchange Contract | Contracts not designated as hedging instruments: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative, term of contract | 3 months | |
Derivative, notional amount | $ 803 | $ 568 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Numerator | ||
Net income (loss) for basic earnings per share | $ 123 | $ (139) |
Denominator | ||
Basic weighted-average shares (in shares) | 1,617 | 1,611 |
Incremental Weighted Average Shares Attributable to Dilutive Effect [Abstract] | ||
Employee equity plans and warrants (in shares) | 22 | 0 |
Diluted weighted-average shares (in shares) | 1,639 | 1,611 |
Diluted (in usd per share) | $ 0.07 | $ (0.09) |
Basic (in usd per share) | $ 0.08 | $ (0.09) |
Common Stock and Employee Equ_3
Common Stock and Employee Equity Plans - Common Stock Activity (Details) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance, beginning of period (in shares) | 1,663,000 | |
Balance, end of period (in shares) | 1,666,000 | |
Stock Repurchase Program, Authorized Amount | $ 12,000 | |
Payments for Repurchase of Common Stock | 4 | $ 241 |
Repurchases of common stock | 4 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 5,600 | |
Stock Repurchase Program, Authorized Amount | $ 12,000 | |
Common stock, par value | ||
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance, beginning of period (in shares) | 1,616,000 | 1,612,000 |
Common stock issued under employee equity plans (in shares) | 3,000 | 1,000 |
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | (1,000) | (1,000) |
Balance, end of period (in shares) | 1,618,000 | 1,609,000 |
Stock Repurchased During Period, Shares | 0 | (3,000) |
Common Stock and Employee Equ_4
Common Stock and Employee Equity Plans - Schedule of Stock-based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 371 | $ 309 |
Cost of sales | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | 6 | 8 |
Research and development | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | 279 | 214 |
Marketing, general and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 86 | $ 87 |
Common Stock and Employee Equ_5
Common Stock and Employee Equity Plans (Details) $ in Millions | 3 Months Ended |
Mar. 30, 2024 USD ($) | |
Equity [Abstract] | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 5,600 |
Repurchases of common stock | $ 4 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Dec. 30, 2023 | |
Income Tax Disclosure [Abstract] | |||
Income tax provision (benefit) | $ (52) | $ 13 | |
Effective tax rate | (73.20%) | (10.30%) | |
Income Taxes | Income Taxes The Company determines its income taxes for interim reporting periods by applying the Company’s estimated annual effective tax rate to the year-to-date results, adjusted for tax items discrete to each period. For the three months ended March 30, 2024, the Company recorded an income tax benefit of $52 million representing an effective tax rate of (73.2)%. The difference between the U.S. federal statutory tax rate of 21% and the Company's estimated annual effective tax rate was primarily due to the income tax benefit from foreign-derived intangible income (FDII) and research and development (R&D) tax credits. In addition, the tax benefit reflected discrete income tax benefits of $61 million, primarily related to stock-based compensation. For the three months ended April 1, 2023, the Company recorded an income tax provision of $13 million representing an effective tax rate of (10.3)%. The difference between the U.S. federal statutory tax rate of 21% and the Company's estimated annual effective tax rate was primarily due to a higher mix of income taxed in lower tax rate jurisdictions, R&D tax credits, and beneficial rate impact from FDII tax benefit. In addition, the tax provision reflected discrete tax expense related to interest and penalties accrued for uncertain tax position. As of March 30, 2024 and December 30, 2023, the Company had long-term income tax liabilities of $1.5 billion and $1.6 billion | ||
Deferred tax liabiilty | $ 1,199 | $ 1,202 | |
Accrued Income Taxes, Noncurrent | 1,500 | $ 1,600 | |
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ 61 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Segment Reporting Information [Line Items] | ||
Total net revenue | $ 5,473 | $ 5,353 |
Total operating income (loss) | 36 | (145) |
Share-based compensation expense | 371 | 309 |
All Other | ||
Segment Reporting Information [Line Items] | ||
Total operating income (loss) | (1,084) | (1,233) |
Data Center | ||
Segment Reporting Information [Line Items] | ||
Total net revenue | 922 | 1,757 |
Data Center | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total operating income (loss) | 151 | 314 |
Client | ||
Segment Reporting Information [Line Items] | ||
Total net revenue | 2,337 | 1,295 |
Client | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total operating income (loss) | 541 | 148 |
Gaming | ||
Segment Reporting Information [Line Items] | ||
Total net revenue | 1,368 | 739 |
Gaming | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total operating income (loss) | 86 | (172) |
Embedded | ||
Segment Reporting Information [Line Items] | ||
Total net revenue | 846 | 1,562 |
Embedded | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total operating income (loss) | $ 342 | $ 798 |
Contingencies (Details)
Contingencies (Details) $ in Millions | Mar. 30, 2024 USD ($) |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Unrecorded Unconditional Purchase Obligation, to be Paid, Remainder of Fiscal Year | $ 3,278 |
Unrecorded Unconditional Purchase Obligation, Including Lease Not yet Commenced, to be Paid, Year Two | 348 |
Unrecorded Unconditional Purchase Obligation, Including Lease Not yet Commenced, to be Paid, Year Four | 44 |
Unrecorded Unconditional Purchase Obligation, Including Lease Not yet Commenced, to be Paid, Year Five | 46 |
Unrecorded Unconditional Purchase Obligation, Including Lease Not yet Commenced, to be Paid, after Year Five | 94 |
Unrecorded Unconditional Purchase Obligation, Including Lease Not yet Commenced, Total | 3,992 |
Recorded Unconditional Purchase Obligation, to be Paid, Year Three | $ 182 |
Business Combinations and Asset
Business Combinations and Asset Acquisitions (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Dec. 30, 2023 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 24,262 | $ 24,262 | |
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | 61 | ||
Income tax provision (benefit) | (52) | $ 13 | |
Goodwill | 24,262 | 24,262 | |
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | 61 | ||
Income tax provision (benefit) | (52) | 13 | |
Amortization of Intangible Assets | 622 | $ 823 | |
Other Intangible Assets | |||
Business Acquisition [Line Items] | |||
Indefinite-lived Intangible Assets (Excluding Goodwill) | $ 220 | $ 220 |
Intangible Assets, Goodwill a_3
Intangible Assets, Goodwill and Other (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 30, 2024 | Apr. 01, 2023 | Dec. 30, 2023 | Feb. 14, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Acquisition-related intangibles, net | $ 20,741 | $ 21,363 | ||
Intangible Assets, Gross (Excluding Goodwill) | 27,722 | $ 27,722 | ||
Finite-Lived Intangible Assets, Gross | 27,502 | 27,502 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | 6,981 | 6,359 | ||
Finite-Lived Intangible Assets, Net | 20,521 | 21,143 | ||
Amortization of Intangible Assets | 622 | $ 823 | ||
Finite-Lived Intangible Asset, Expected Amortization, Remainder of Fiscal Year | 1,749 | |||
Finite-Lived Intangible Asset, Expected Amortization, Year One | 2,145 | |||
Finite-Lived Intangible Asset, Expected Amortization, Year Two | 2,034 | |||
Finite-Lived Intangible Asset, Expected Amortization, Year Three | 1,922 | |||
Finite-Lived Intangible Asset, Expected Amortization, Year Four | 1,846 | |||
Finite-Lived Intangible Asset, Expected Amortization, after Year Five | 10,825 | |||
Finite-Lived Intangible Asset, Expected Amortization, Year Five | 10,825 | |||
Goodwill | 24,262 | 24,262 | ||
Goodwill [Line Items] | ||||
Goodwill | 24,262 | 24,262 | ||
Equity income in investee | 7 | 1 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | 6,981 | 6,359 | ||
Finite-Lived Intangible Assets, Net | 20,521 | 21,143 | ||
Finite-Lived Intangible Assets, Gross | 27,502 | 27,502 | ||
Intangible Assets, Gross (Excluding Goodwill) | 27,722 | $ 27,722 | ||
Acquisition-related intangibles, net | 20,741 | 21,363 | ||
Amortization of Intangible Assets | 622 | 823 | ||
Other Intangible Assets | ||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Indefinite-lived Intangible Assets (Excluding Goodwill) | 220 | 220 | ||
Goodwill [Line Items] | ||||
Indefinite-lived Intangible Assets (Excluding Goodwill) | 220 | 220 | ||
Developed Technology Rights | ||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Finite-Lived Intangible Assets, Gross | 13,390 | 13,390 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | 1,815 | 1,583 | ||
Finite-Lived Intangible Assets, Net | 11,575 | 11,807 | ||
Goodwill [Line Items] | ||||
Finite-Lived Intangible Assets, Accumulated Amortization | 1,815 | 1,583 | ||
Finite-Lived Intangible Assets, Net | 11,575 | 11,807 | ||
Finite-Lived Intangible Assets, Gross | 13,390 | 13,390 | ||
Customer Relationships | ||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Finite-Lived Intangible Assets, Gross | 12,324 | 12,324 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | 4,127 | 3,755 | ||
Finite-Lived Intangible Assets, Net | 8,197 | 8,569 | ||
Goodwill [Line Items] | ||||
Finite-Lived Intangible Assets, Accumulated Amortization | 4,127 | 3,755 | ||
Finite-Lived Intangible Assets, Net | 8,197 | 8,569 | ||
Finite-Lived Intangible Assets, Gross | 12,324 | 12,324 | ||
Customer Contracts | ||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Finite-Lived Intangible Assets, Gross | 809 | 809 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | 809 | 809 | ||
Finite-Lived Intangible Assets, Net | 0 | 0 | ||
Goodwill [Line Items] | ||||
Finite-Lived Intangible Assets, Accumulated Amortization | 809 | 809 | ||
Finite-Lived Intangible Assets, Net | 0 | 0 | ||
Finite-Lived Intangible Assets, Gross | 809 | 809 | ||
Trade Names | ||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Finite-Lived Intangible Assets, Gross | 65 | 65 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | 65 | 65 | ||
Finite-Lived Intangible Assets, Net | 0 | 0 | ||
Goodwill [Line Items] | ||||
Finite-Lived Intangible Assets, Accumulated Amortization | 65 | 65 | ||
Finite-Lived Intangible Assets, Net | 0 | 0 | ||
Finite-Lived Intangible Assets, Gross | 65 | 65 | ||
Trademarks | ||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Finite-Lived Intangible Assets, Gross | 914 | 914 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | 165 | 147 | ||
Finite-Lived Intangible Assets, Net | 749 | 767 | ||
Goodwill [Line Items] | ||||
Finite-Lived Intangible Assets, Accumulated Amortization | 165 | 147 | ||
Finite-Lived Intangible Assets, Net | 749 | 767 | ||
Finite-Lived Intangible Assets, Gross | 914 | $ 914 | ||
ATMP JV | Joint Venture | ||||
Goodwill [Line Items] | ||||
Equity income in investee | $ 7 | $ 1 |