Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 29, 2024 | Jul. 24, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 29, 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, $0.01 par value per share | |
Trading Symbol | AMD | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,618,481,845 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000002488 | |
Current Fiscal Year End Date | --12-28 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Income Statement [Abstract] | ||||
Net revenue | $ 5,835 | $ 5,359 | $ 11,308 | $ 10,712 |
Cost of sales | 2,740 | 2,704 | 5,423 | 5,393 |
Amortization of acquisition-related intangibles | 231 | 212 | 461 | 517 |
Cost of sales | 2,971 | 2,916 | 5,884 | 5,910 |
Gross profit | 2,864 | 2,443 | 5,424 | 4,802 |
Research and development | 1,583 | 1,443 | 3,108 | 2,854 |
Marketing, general and administrative | 650 | 547 | 1,270 | 1,132 |
Amortization of acquisition-related intangibles-Opex | 372 | 481 | 764 | 999 |
Licensing gain | (10) | (8) | (23) | (18) |
Operating income (loss) | 269 | (20) | 305 | (165) |
Interest expense | (25) | (28) | (50) | (53) |
Other income (expense), net | 55 | 46 | 108 | 89 |
Income (loss) before income taxes and equity income | 299 | (2) | 363 | (129) |
Income tax provision (benefit) | 41 | (23) | (11) | (10) |
Equity income in investee | 7 | 6 | 14 | 7 |
Net income (loss) | $ 265 | $ 27 | $ 388 | $ (112) |
Earnings (loss) per share | ||||
Basic (in usd per share) | $ 0.16 | $ 0.02 | $ 0.24 | $ (0.07) |
Diluted (in usd per share) | $ 0.16 | $ 0.02 | $ 0.24 | $ (0.07) |
Shares used in per share calculation | ||||
Basic (in shares) | 1,618 | 1,612 | 1,617 | 1,612 |
Diluted (in shares) | 1,637 | 1,627 | 1,638 | 1,612 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 265 | $ 27 | $ 388 | $ (112) |
Other comprehensive income (loss), net of tax: | ||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax | (1) | (11) | (19) | 9 |
Total comprehensive income (loss) | $ 264 | $ 16 | $ 369 | $ (103) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) shares in Millions, $ in Millions | Jun. 29, 2024 | Dec. 30, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 4,113 | $ 3,933 |
Short-term investments | 1,227 | 1,840 |
Accounts receivable, net | 5,749 | 5,376 |
Inventories | 4,991 | 4,351 |
Receivables from related parties | 24 | 9 |
Prepaid expenses and other current assets | 1,361 | 1,259 |
Total current assets | 17,465 | 16,768 |
Property and equipment, net | 1,666 | 1,589 |
Operating lease right-of-use assets | 635 | 633 |
Goodwill | 24,262 | 24,262 |
Acquisition-related intangibles, net | 20,138 | 21,363 |
Investment: equity method | 113 | 99 |
Deferred tax assets | 617 | 366 |
Other non-current assets | 2,990 | 2,805 |
Total assets | 67,886 | 67,885 |
Current liabilities: | ||
Accounts payable | 1,699 | 2,055 |
Payables to related parties | 420 | 363 |
Accrued liabilities | 3,629 | 3,082 |
Current portion of long-term debt, net | 0 | 751 |
Other current liabilities | 447 | 438 |
Total current liabilities | 6,195 | 6,689 |
Long-term debt, net of current portion | 1,719 | 1,717 |
Long-term operating lease liabilities | 526 | 535 |
Deferred tax liabilities | 1,192 | 1,202 |
Other long-term liabilities | 1,716 | 1,850 |
Commitments and contingencies (See Note 12) | ||
Capital stock: | ||
Common stock, par value $0.01; shares authorized: 2,250; shares issued: 1,668 and 1,663; shares outstanding: 1,618 and 1,616 | 17 | 17 |
Additional paid-in capital | 60,542 | 59,676 |
Treasury stock, at cost (shares held: 50 and 47) | (5,103) | (4,514) |
Retained earnings | 1,111 | 723 |
Accumulated other comprehensive loss | (29) | (10) |
Total stockholders’ equity | 56,538 | 55,892 |
Total liabilities and stockholders’ equity | $ 67,886 | $ 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) | 1,668 | 1,663 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheet (Parenthetical) - USD ($) shares in Millions, $ in Millions | Jun. 29, 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) | 1,668 | 1,663 |
Common stock, outstanding (in shares) | 1,618 | 1,616 |
Treasury Stock, Common, Shares | 50 | 47 |
Cash and cash equivalents | $ 4,113 | $ 3,933 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 388 | $ (112) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 1,553 | 1,831 |
Stock-based compensation | 717 | 657 |
Amortization of operating lease right-of-use assets | 52 | 48 |
Deferred income taxes | (256) | (582) |
Inventory loss at contract manufacturer | 65 | 0 |
Other | (37) | (8) |
Changes in operating assets and liabilities | ||
Accounts receivable, net | (373) | (186) |
Inventories | (710) | (796) |
Prepaid expenses and other assets | (234) | (237) |
Receivables from and payables to related parties, net | 42 | (150) |
Accounts payable | (356) | 309 |
Accrued and other liabilities | 263 | 91 |
Net cash provided by operating activities | 1,114 | 865 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (296) | (283) |
Purchases of short-term investments | (565) | (2,816) |
Proceeds from maturity of short-term investments | 1,202 | 1,171 |
Proceeds from sale of short-term investments | 2 | 248 |
Other | (92) | 5 |
Net cash provided by (used in) investing activities | 251 | (1,675) |
Cash flows from financing activities: | ||
Repayment of debt | (750) | 0 |
Proceeds from sales of common stock through employee equity plans | 148 | 144 |
Repurchases of common stock | (356) | (241) |
Common stock repurchases for tax withholding on employee equity plans | (226) | (87) |
Other | (1) | 0 |
Net cash used in financing activities | (1,185) | (184) |
Net increase (decrease) in cash and cash equivalents | 180 | (994) |
Cash and cash equivalents at beginning of period | 3,933 | 4,835 |
Cash and cash equivalents at end of period | 4,113 | 3,841 |
Supplemental cash flow information: | ||
Cash paid for taxes, net of refunds | 311 | 46 |
Non-cash investing and financing activities: | ||
Purchases of property and equipment, accrued but not paid | 110 | 99 |
Operating lease right-of-use assets acquired by assuming related liabilities | $ 53 | $ 50 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Common stock, par value | Additional paid-in capital | Treasury stock | Retained earnings (Accumulated deficit): | Accumulated other comprehensive loss: |
Beginning balance at Dec. 31, 2022 | $ 16 | $ 58,005 | $ (3,099) | $ (131) | $ (41) | |
Increase (Decrease) in Stockholders' Equity | ||||||
Common stock issued under employee equity plans | 149 | |||||
Stock-based compensation | 657 | |||||
Issuance of common stock to settle convertible debt | 1 | |||||
Issuance of common stock warrants | 13 | |||||
Repurchases of common stock | (241) | |||||
Common stock repurchases for tax withholding on employee equity plans | $ 87 | (90) | ||||
Net income (loss) | (112) | (112) | ||||
Other comprehensive income (loss) | 9 | |||||
Ending balance at Jul. 01, 2023 | 55,136 | 16 | 58,825 | (3,430) | (243) | (32) |
Beginning balance at Apr. 01, 2023 | 16 | 58,331 | (3,362) | (270) | (21) | |
Increase (Decrease) in Stockholders' Equity | ||||||
Common stock issued under employee equity plans | 145 | |||||
Stock-based compensation | 348 | |||||
Issuance of common stock to settle convertible debt | 1 | |||||
Issuance of common stock warrants | 0 | |||||
Repurchases of common stock | 0 | |||||
Common stock repurchases for tax withholding on employee equity plans | (68) | |||||
Net income (loss) | 27 | 27 | ||||
Other comprehensive income (loss) | (11) | |||||
Ending balance at Jul. 01, 2023 | 55,136 | 16 | 58,825 | (3,430) | (243) | (32) |
Beginning balance at Dec. 30, 2023 | 55,892 | 17 | 59,676 | (4,514) | 723 | (10) |
Increase (Decrease) in Stockholders' Equity | ||||||
Common stock issued under employee equity plans | 149 | |||||
Stock-based compensation | 717 | |||||
Issuance of common stock warrants | 0 | |||||
Repurchases of common stock | 356 | (356) | ||||
Common stock repurchases for tax withholding on employee equity plans | 226 | (233) | ||||
Net income (loss) | 388 | 388 | ||||
Other comprehensive income (loss) | (19) | |||||
Ending balance at Jun. 29, 2024 | 56,538 | 17 | 60,542 | (5,103) | 1,111 | (29) |
Beginning balance at Mar. 30, 2024 | 17 | 60,053 | (4,690) | 846 | (28) | |
Increase (Decrease) in Stockholders' Equity | ||||||
Common stock issued under employee equity plans | 143 | |||||
Stock-based compensation | 346 | |||||
Issuance of common stock to settle convertible debt | 0 | |||||
Issuance of common stock warrants | 0 | |||||
Repurchases of common stock | 352 | (352) | ||||
Common stock repurchases for tax withholding on employee equity plans | (61) | |||||
Net income (loss) | 265 | 265 | ||||
Other comprehensive income (loss) | (1) | |||||
Ending balance at Jun. 29, 2024 | $ 56,538 | $ 17 | $ 60,542 | $ (5,103) | $ 1,111 | $ (29) |
The Company
The Company | 6 Months Ended |
Jun. 29, 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. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jun. 29, 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 and six months ended June 29, 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 and six months ended June 29, 2024 and July 1, 2023 each consisted of 13 weeks and 26 weeks, respectively. 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. |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 6 Months Ended |
Jun. 29, 2024 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Information | Supplemental Financial Statement Information Accounts Receivable, net As of June 29, 2024 and December 30, 2023, Accounts receivable, net included unbilled accounts receivable of $1.7 billion and $1.1 billion, respectively. Unbilled accounts receivable primarily represent work completed on development services and on custom products for which revenue has been recognized but not yet invoiced. Unbilled accounts receivable that are included in Accounts receivable, net are expected to be billed and collected within 12 months. Inventories June 29, December 30, (In millions) Raw materials $ 338 $ 279 Work in process 3,727 3,260 Finished goods 926 812 Total inventories $ 4,991 $ 4,351 Property and Equipment, net June 29, December 30, (In millions) Land, building and leasehold improvements $ 834 $ 821 Equipment 2,603 2,346 Construction in progress 217 209 Property and equipment, gross 3,654 3,376 Accumulated depreciation (1,988) (1,787) Total property and equipment, net $ 1,666 $ 1,589 Accrued Liabilities June 29, December 30, (In millions) Customer-related liabilities $ 1,402 $ 788 Accrued marketing programs 828 827 Accrued compensation and benefits 755 884 Other accrued liabilities 644 583 Total accrued liabilities $ 3,629 $ 3,082 Revenue Revenue allocated to remaining performance obligations that are unsatisfied (or partially unsatisfied) include amounts received from customers and amounts that will be invoiced and recognized as revenue in future periods for development services, IP licensing and product revenue. As of June 29, 2024, the aggregate transaction price allocated to remaining performance obligations under contracts with an original expected duration of more than one year was $76 million, of which $42 million is expected to be recognized in the next 12 months. The revenue allocated to remaining performance obligations does not include amounts which have an original expected duration of one year or less. Revenue recognized over time associated with custom products and development services accounted for 8% and 12% of the Company’s revenue for the three and six months ended June 29, 2024, respectively and 27% and 28% of the Company’s revenue for the three and six months ended July 1, 2023, respectively. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 29, 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 Six Months Ended June 29, July 1, June 29, July 1, (In millions) Net revenue: Data Center $ 2,834 $ 1,321 $ 5,171 $ 2,616 Client 1,492 998 2,860 1,737 Gaming 648 1,581 1,570 3,338 Embedded 861 1,459 1,707 3,021 Total net revenue $ 5,835 $ 5,359 $ 11,308 $ 10,712 Operating income (loss): Data Center $ 743 $ 147 $ 1,284 $ 295 Client 89 (69) 175 (241) Gaming 77 225 228 539 Embedded 345 757 687 1,555 All Other (1) (985) (1,080) (2,069) (2,313) Total operating income (loss) $ 269 $ (20) $ 305 $ (165) (1) For the three and six months ended June 29, 2024, all other operating losses primarily included $603 million and $1.2 billion of amortization of acquisition-related intangibles, and $346 million and $717 million of stock-based compensation expense, respectively. For the three and six months ended July 1, 2023, all other operating losses primarily included $693 million and $1.5 billion of amortization of acquisition-related intangibles, and $348 million and $657 million of stock-based compensation expense, respectively. |
Intangible Assets, Goodwill and
Intangible Assets, Goodwill and Other | 6 Months Ended |
Jun. 29, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure | Acquisition-related Intangibles, net Acquisition-related intangibles, net were as follows: June 29, 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 $ (2,045) $ 11,345 $ 13,390 $ (1,583) $ 11,807 Customer relationships 12,324 (4,479) 7,845 12,324 (3,755) 8,569 Customer backlog 809 (809) — 809 (809) — Corporate trade name 65 (65) — 65 (65) — Product trademarks 914 (186) 728 914 (147) 767 Identified intangible assets subject to amortization 27,502 (7,584) 19,918 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 $ (7,584) $ 20,138 $ 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 $603 million and $1.2 billion for the three and six months ended June 29, 2024, and $693 million and $1.5 billion for the three and six months ended July 1, 2023, respectively. Based on the carrying value of acquisition-related intangibles recorded as of June 29, 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 $ 1,146 2025 2,145 2026 2,034 2027 1,922 2028 1,846 2029 and thereafter 10,825 Total $ 19,918 |
Related Parties - Equity Joint
Related Parties - Equity Joint Ventures | 6 Months Ended |
Jun. 29, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Related Parties - 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 and six months ended June 29, 2024 were $389 million and $839 million, respectively. The Company’s purchases from the ATMP JV during the three and six months ended July 1, 2023 were $412 million and $779 million, respectively. As of June 29, 2024 and December 30, 2023, the amounts payable to the ATMP JV were $420 million and $363 million, respectively, and are reflected as Payables to related parties on the Company’s condensed consolidated balance sheets. The Company’s resales to the ATMP JV during the three and six months ended June 29, 2024 were $30 million and $70 million, respectively. The Company’s resales to the ATMP JV during the three and six months ended July 1, 2023 were $1 million and $3 million, respectively. As of June 29, 2024 and December 30, 2023, the Company’s receivables from the ATMP JV were $24 million and $9 million, respectively, and are reflected as Receivables from related parties on the Company’s condensed consolidated balance sheets. During the three and six months ended June 29, 2024, the Company recorded a gain of $7 million and $14 million, in Equity income in investee on its condensed consolidated statements of operations, respectively. During the three and six months ended July 1, 2023, the Company recorded a gain of $6 million and $7 million, in Equity income in investee on its condensed consolidated statements of operations, respectively. As of June 29, 2024 and December 30, 2023, the carrying value of the Company’s investment in the ATMP JV was $113 million and $99 million, respectively. THATIC Joint Ventures The Company holds equity interests in two joint ventures (collectively, the THATIC JV) with Higon Information Technology Co., Ltd. (THATIC), a third-party Chinese entity. As of both June 29, 2024 and December 30, 2023, the carrying value of the investment was zero. The Company licenses certain of its intellectual property (Licensed IP) to the THATIC JV and receives royalties based on sales of the THATIC JV’s products, which is recorded within operating income as licensing gain. During the three and six months ended June 29, 2024, the Company recognized $10 million and |
Debt and Revolving Facility
Debt and Revolving Facility | 6 Months Ended |
Jun. 29, 2024 | |
Debt Disclosure [Abstract] | |
Debt and Revolving Facility | Debt, Revolving Credit Facility and Commercial Paper Program Debt The Company’s total debt as of June 29, 2024 and December 30, 2023 consisted of the following: June 29, December 30, (In millions) 2.95% Senior Notes Due 2024 (2.95% Notes) $ — $ 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) 1,750 2,500 Unamortized debt discount and issuance costs (31) (32) Total debt (net) 1,719 2,468 Less: current portion of long-term debt and related unamortized debt premium and issuance costs — (751) Total long-term debt $ 1,719 $ 1,717 2.95% Senior Notes Due 2024 The 2.95% Notes with a principal amount of $750 million were repaid in June 2024. 2.375% Senior Notes Due 2030, 3.924% Senior Notes Due 2032 and 4.393% Senior Notes Due 2052 The 2.375% Notes, 3.924% Notes and 4.393% Notes are general unsecured senior obligations of the Company with semi-annual fixed interest payments due on June 1 and December 1. As of June 29, 2024, the Company was in compliance with the covenants associated with its debt. Revolving Credit Facility The Company has $3.0 billion available under a revolving credit facility that expires on April 29, 2027. During the three and six months ended June 29, 2024, the Company did not borrow under the revolving credit facility and as of June 29, 2024 and December 30, 2023, the Company had no outstanding borrowings under the revolving credit facility. As of June 29, 2024, the Company was in compliance with the covenants under the revolving credit facility. Commercial Paper Program The Company has a commercial paper program under which it can issue unsecured commercial paper notes up to $3.0 billion. During the three and six months ended June 29, 2024, the Company did not issue any commercial paper under the program and as of June 29, 2024 and December 30, 2023, the Company had no commercial paper outstanding. |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 29, 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 June 29, 2024 December 30, 2023 (In millions) Level 1 Level 2 Total Level 1 Level 2 Total Cash equivalents Money market funds $ 1,229 $ — $ 1,229 $ 969 $ — $ 969 Corporate debt securities — 995 995 — 753 753 U.S. government and agency securities 724 — 724 1,252 — 1,252 Non-U.S. government and agency securities — 149 149 — 135 135 Time deposits and certificates of deposits — 151 151 — 205 205 Short-term investments Corporate debt securities — 302 302 — 506 506 Time deposits and certificates of deposits — 10 10 — 9 9 Asset-backed and mortgage-backed securities — 31 31 — 34 34 U.S. government and agency securities 818 43 861 1,209 28 1,237 Non-U.S. government and agency securities — 23 23 — 54 54 Other non-current assets Deferred compensation plan investments 153 — 153 133 — 133 Total assets measured at fair value $ 2,924 $ 1,704 $ 4,628 $ 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: June 29, 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 $ 33 $ — $ (2) $ 31 $ 35 $ — $ (2) $ 33 Corporate debt securities 1,298 — (1) 1,297 1,259 — — 1,259 Money market funds 1,229 — — 1,229 969 — — 969 Time deposits and certificates of deposits 161 — — 161 214 — — 214 U.S. government and agency securities 1,586 — (1) 1,585 2,487 3 — 2,490 Non-U.S. government and agency securities 172 — — 172 189 — — 189 $ 4,479 $ — $ (4) $ 4,475 $ 5,153 $ 3 $ (2) $ 5,154 As of June 29, 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: June 29, 2024 December 30, 2023 Amortized Cost Fair Value Amortized Cost Fair Value (In millions) (In millions) Due within 1 year $ 2,762 $ 2,762 $ 3,792 $ 3,792 Due in 1 year through 5 years 459 457 361 364 Due in 5 years and later 29 27 32 30 $ 3,250 $ 3,246 $ 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: June 29, 2024 December 30, 2023 Carrying Estimated Carrying Estimated (In millions) (In millions) Current portion of long-term debt, net $ — $ — $ 751 $ 741 Long-term debt, net of current portion $ 1,719 $ 1,537 $ 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 June 29, 2024 and December 30, 2023, the Company had non-marketable securities in privately-held companies of $245 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 and six months ended June 29, 2024 and July 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 June 29, 2024 and December 30, 2023, the notional value of the Company’s outstanding foreign currency forward contracts designated as cash flow hedges was $2.1 billion and $2.4 billion, respectively. The fair value of these contracts, recorded as a liability, was $14 million as of June 29, 2024 and as an asset was $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 June 29, 2024 and December 30, 2023, the notional value of these outstanding contracts was $460 million and $568 million, respectively. The fair value of these contracts was not material as of June 29, 2024 and December 30, 2023. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 29, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings (Loss) Per Share The following table sets forth the components of basic and diluted earnings (loss) per share: Three Months Ended Six Months Ended June 29, July 1, June 29, July 1, (In millions, except per share amounts) Numerator Net income (loss) for basic earnings per share $ 265 $ 27 $ 388 $ (112) Denominator Basic weighted average shares 1,618 1,612 1,617 1,612 Potentially dilutive shares from employee equity plans 19 15 21 — Diluted weighted average shares 1,637 1,627 1,638 1,612 Earnings (loss) per share: Basic $ 0.16 $ 0.02 $ 0.24 $ (0.07) Diluted $ 0.16 $ 0.02 $ 0.24 $ (0.07) |
Common Stock and Employee Equit
Common Stock and Employee Equity Plans | 6 Months Ended |
Jun. 29, 2024 | |
Equity [Abstract] | |
Common Stock and Employee Equity Plans | Common Stock and Stock-based Compensation Common Stock Shares of common stock outstanding were as follows: Three Months Ended Six Months Ended June 29, July 1, June 29, July 1, (In millions) Balance, beginning of period 1,618 1,609 1,616 1,612 Common stock issued under employee equity plans 2 4 5 5 Common stock repurchases for tax withholding on equity awards — — (1) (1) Issuance of common stock upon warrant exercise — 1 — 1 Repurchases of common stock (2) — (2) (3) Balance, end of period 1,618 1,614 1,618 1,614 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 and six months ended June 29, 2024, the Company returned $352 million and $356 million, respectively, to shareholders through the repurchase of its common stock under the Repurchase Program. As of June 29, 2024, $5.2 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 Six Months Ended June 29, July 1, June 29, July 1, (In millions) Cost of sales $ 5 $ 10 $ 11 $ 18 Research and development 262 247 541 461 Marketing, general and administrative 79 91 165 178 Total $ 346 $ 348 $ 717 $ 657 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 29, 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 and six months ended June 29, 2024, the Company recorded an income tax provision of $41 million and an income tax benefit of $11 million representing an effective tax rate of 13.4% and (2.9)%, respectively. 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. The tax provision for the three months ended June 29, 2024 reflected a discrete tax expense of $21 million, primarily related to interest and penalties accrued for uncertain tax positions partially offset by the tax effects of stock-based compensation. The tax benefit for the six months ended June 29, 2024 reflected a discrete tax benefit of $40 million, primarily related to stock-based compensation. For the three months and six months ended July 1, 2023, the Company recorded an income tax benefit of $23 million and $10 million representing an effective tax rate of (511.4)% and 8.0%, respectively. 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 FDII and R&D tax credits. The tax benefit for the three months ended July 1, 2023 reflected a discrete tax benefit of $34 million that had a disproportionate impact on the effective tax rate because the pre-tax income was close to breakeven for the period. The tax benefit for the six months ended July 1, 2023, reflected a discrete tax benefit of $12 million which was not material to the total tax expense or the effective tax rate. |
Contingencies
Contingencies | 6 Months Ended |
Jun. 29, 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 June 29, 2024 were as follows: Fiscal Year (In millions) Remainder of 2024 $ 3,056 2025 371 2026 268 2027 44 2028 44 2029 and thereafter 95 Total unconditional purchase commitments $ 3,878 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 June 29, 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. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Jun. 29, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent EventOn July 9, 2024, the Company entered into a definitive agreement to acquire Silo AI Oy, an AI lab based in Helsinki, Finland, in an all-cash transaction valued at approximately $665 million. The transaction is subject to customary closing conditions and is expected to close in the second half of fiscal year 2024. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Pay vs Performance Disclosure | ||||
Net income (loss) | $ 265 | $ 27 | $ 388 | $ (112) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 29, 2024 | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 29, 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 and six months ended June 29, 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 and six months ended June 29, 2024 and July 1, 2023 each consisted of 13 weeks and 26 weeks, respectively. 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 and six months ended June 29, 2024 and July 1, 2023 each consisted of 13 weeks and 26 weeks, respectively. 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 In_2
Supplemental Balance Sheet Information (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Balance Sheet Related Disclosures [Abstract] | |
Inventories | Inventories June 29, December 30, (In millions) Raw materials $ 338 $ 279 Work in process 3,727 3,260 Finished goods 926 812 Total inventories $ 4,991 $ 4,351 |
Property and Equipment, Net | Property and Equipment, net June 29, December 30, (In millions) Land, building and leasehold improvements $ 834 $ 821 Equipment 2,603 2,346 Construction in progress 217 209 Property and equipment, gross 3,654 3,376 Accumulated depreciation (1,988) (1,787) Total property and equipment, net $ 1,666 $ 1,589 |
Accrued Liabilities | Accrued Liabilities June 29, December 30, (In millions) Customer-related liabilities $ 1,402 $ 788 Accrued marketing programs 828 827 Accrued compensation and benefits 755 884 Other accrued liabilities 644 583 Total accrued liabilities $ 3,629 $ 3,082 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 29, 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 Six Months Ended June 29, July 1, June 29, July 1, (In millions) Net revenue: Data Center $ 2,834 $ 1,321 $ 5,171 $ 2,616 Client 1,492 998 2,860 1,737 Gaming 648 1,581 1,570 3,338 Embedded 861 1,459 1,707 3,021 Total net revenue $ 5,835 $ 5,359 $ 11,308 $ 10,712 Operating income (loss): Data Center $ 743 $ 147 $ 1,284 $ 295 Client 89 (69) 175 (241) Gaming 77 225 228 539 Embedded 345 757 687 1,555 All Other (1) (985) (1,080) (2,069) (2,313) Total operating income (loss) $ 269 $ (20) $ 305 $ (165) (1) For the three and six months ended June 29, 2024, all other operating losses primarily included $603 million and $1.2 billion of amortization of acquisition-related intangibles, and $346 million and $717 million of stock-based compensation expense, respectively. For the three and six months ended July 1, 2023, all other operating losses primarily included $693 million and $1.5 billion of amortization of acquisition-related intangibles, and $348 million and $657 million of stock-based compensation expense, respectively. |
Intangible Assets, Goodwill a_2
Intangible Assets, Goodwill and Other (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Acquired Indefinite-lived Intangible Assets by Major Class | June 29, 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 $ (2,045) $ 11,345 $ 13,390 $ (1,583) $ 11,807 Customer relationships 12,324 (4,479) 7,845 12,324 (3,755) 8,569 Customer backlog 809 (809) — 809 (809) — Corporate trade name 65 (65) — 65 (65) — Product trademarks 914 (186) 728 914 (147) 767 Identified intangible assets subject to amortization 27,502 (7,584) 19,918 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 $ (7,584) $ 20,138 $ 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 June 29, 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 $ 1,146 2025 2,145 2026 2,034 2027 1,922 2028 1,846 2029 and thereafter 10,825 Total $ 19,918 |
Debt and Revolving Facility (Ta
Debt and Revolving Facility (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company’s total debt as of June 29, 2024 and December 30, 2023 consisted of the following: June 29, December 30, (In millions) 2.95% Senior Notes Due 2024 (2.95% Notes) $ — $ 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) 1,750 2,500 Unamortized debt discount and issuance costs (31) (32) Total debt (net) 1,719 2,468 Less: current portion of long-term debt and related unamortized debt premium and issuance costs — (751) Total long-term debt $ 1,719 $ 1,717 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | Financial Instruments Recorded at Fair Value on a Recurring Basis June 29, 2024 December 30, 2023 (In millions) Level 1 Level 2 Total Level 1 Level 2 Total Cash equivalents Money market funds $ 1,229 $ — $ 1,229 $ 969 $ — $ 969 Corporate debt securities — 995 995 — 753 753 U.S. government and agency securities 724 — 724 1,252 — 1,252 Non-U.S. government and agency securities — 149 149 — 135 135 Time deposits and certificates of deposits — 151 151 — 205 205 Short-term investments Corporate debt securities — 302 302 — 506 506 Time deposits and certificates of deposits — 10 10 — 9 9 Asset-backed and mortgage-backed securities — 31 31 — 34 34 U.S. government and agency securities 818 43 861 1,209 28 1,237 Non-U.S. government and agency securities — 23 23 — 54 54 Other non-current assets Deferred compensation plan investments 153 — 153 133 — 133 Total assets measured at fair value $ 2,924 $ 1,704 $ 4,628 $ 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: June 29, 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 $ 33 $ — $ (2) $ 31 $ 35 $ — $ (2) $ 33 Corporate debt securities 1,298 — (1) 1,297 1,259 — — 1,259 Money market funds 1,229 — — 1,229 969 — — 969 Time deposits and certificates of deposits 161 — — 161 214 — — 214 U.S. government and agency securities 1,586 — (1) 1,585 2,487 3 — 2,490 Non-U.S. government and agency securities 172 — — 172 189 — — 189 $ 4,479 $ — $ (4) $ 4,475 $ 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: June 29, 2024 December 30, 2023 Amortized Cost Fair Value Amortized Cost Fair Value (In millions) (In millions) Due within 1 year $ 2,762 $ 2,762 $ 3,792 $ 3,792 Due in 1 year through 5 years 459 457 361 364 Due in 5 years and later 29 27 32 30 $ 3,250 $ 3,246 $ 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: June 29, 2024 December 30, 2023 Carrying Estimated Carrying Estimated (In millions) (In millions) Current portion of long-term debt, net $ — $ — $ 751 $ 741 Long-term debt, net of current portion $ 1,719 $ 1,537 $ 1,717 $ 1,630 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 29, 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 (loss) per share: Three Months Ended Six Months Ended June 29, July 1, June 29, July 1, (In millions, except per share amounts) Numerator Net income (loss) for basic earnings per share $ 265 $ 27 $ 388 $ (112) Denominator Basic weighted average shares 1,618 1,612 1,617 1,612 Potentially dilutive shares from employee equity plans 19 15 21 — Diluted weighted average shares 1,637 1,627 1,638 1,612 Earnings (loss) per share: Basic $ 0.16 $ 0.02 $ 0.24 $ (0.07) Diluted $ 0.16 $ 0.02 $ 0.24 $ (0.07) |
Common Stock and Employee Equ_2
Common Stock and Employee Equity Plans (Tables) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Equity [Abstract] | ||
Schedule of Common Shares Outstanding | Common Stock Shares of common stock outstanding were as follows: Three Months Ended Six Months Ended June 29, July 1, June 29, July 1, (In millions) Balance, beginning of period 1,618 1,609 1,616 1,612 Common stock issued under employee equity plans 2 4 5 5 Common stock repurchases for tax withholding on equity awards — — (1) (1) Issuance of common stock upon warrant exercise — 1 — 1 Repurchases of common stock (2) — (2) (3) Balance, end of period 1,618 1,614 1,618 1,614 | |
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 Six Months Ended June 29, July 1, June 29, July 1, (In millions) Cost of sales $ 5 $ 10 $ 11 $ 18 Research and development 262 247 541 461 Marketing, general and administrative 79 91 165 178 Total $ 346 $ 348 $ 717 $ 657 | |
Payments for Repurchase of Common Stock | $ 356 | $ 241 |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Recorded Unconditional Purchase Obligations | Total future unconditional purchase commitments as of June 29, 2024 were as follows: Fiscal Year (In millions) Remainder of 2024 $ 3,056 2025 371 2026 268 2027 44 2028 44 2029 and thereafter 95 Total unconditional purchase commitments $ 3,878 |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Jun. 29, 2024 | Dec. 30, 2023 |
Accounts Receivable, Net | ||
Unbilled contracts receivable | $ 1,700 | $ 1,100 |
Inventories | ||
Raw materials | 338 | 279 |
Work in process | 3,727 | 3,260 |
Finished goods | 926 | 812 |
Inventories, Total | 4,991 | 4,351 |
Property and Equipment, Net | ||
Land, building and leasehold improvements | 834 | 821 |
Equipment | 2,603 | 2,346 |
Construction in progress | 217 | 209 |
Property and equipment, gross | 3,654 | 3,376 |
Accumulated depreciation | (1,988) | (1,787) |
Total property and equipment, net | 1,666 | 1,589 |
Accrued Liabilities | ||
Accrued compensation and benefits | 755 | 884 |
Customer-related liabilities | 1,402 | 788 |
Accrued marketing programs | 828 | 827 |
Other accrued liabilities | 644 | 583 |
Total accrued liabilities | 3,629 | 3,082 |
Prepaid Expenses and Other Current Assets [Line Items] | ||
Prepaid expenses and other current assets | 1,361 | 1,259 |
Other current liabilities | $ 447 | $ 438 |
Supplemental Balance Sheet In_4
Supplemental Balance Sheet Information - Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Balance Sheet Related Disclosures [Abstract] | ||||
Revenue allocated to remaining performance obligations that are unsatisfied or partially unsatisfied | $ 76 | $ 76 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Revenue allocated to remaining performance obligations that are unsatisfied or partially unsatisfied | 76 | 76 | ||
us-gaap_RevenueRemainingPerformanceObligation12months | $ 42 | $ 42 | ||
Transferred over Time | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Percentage of Revenue to Total Revenue | 8% | 27% | 12% | 28% |
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 | 12 months |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Segment Reporting Information [Line Items] | ||||
Total net revenue | $ 5,835 | $ 5,359 | $ 11,308 | $ 10,712 |
Total operating income (loss) | 269 | (20) | 305 | (165) |
Share-based compensation expense | 346 | 348 | 717 | 657 |
All Other | ||||
Segment Reporting Information [Line Items] | ||||
Total operating income (loss) | (985) | (1,080) | (2,069) | (2,313) |
Segment Reporting, Reconciling Item, Corporate Nonsegment | ||||
Segment Reporting Information [Line Items] | ||||
Amortization of Intangible Assets | 603 | 693 | 1,200 | 1,500 |
Data Center | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenue | 648 | 1,581 | 1,570 | 3,338 |
Data Center | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total operating income (loss) | 77 | 225 | 228 | 539 |
Client | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenue | 2,834 | 1,321 | 5,171 | 2,616 |
Client | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total operating income (loss) | 743 | 147 | 1,284 | 295 |
Gaming | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenue | 1,492 | 998 | 2,860 | 1,737 |
Gaming | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total operating income (loss) | 89 | (69) | 175 | (241) |
Embedded | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenue | 861 | 1,459 | 1,707 | 3,021 |
Embedded | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total operating income (loss) | $ 345 | $ 757 | $ 687 | $ 1,555 |
Intangible Assets, Goodwill a_3
Intangible Assets, Goodwill and Other (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | Dec. 30, 2023 | Feb. 14, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||
Acquisition-related intangibles, net | $ 20,138 | $ 20,138 | $ 21,363 | |||
Intangible Assets, Gross (Excluding Goodwill) | 27,722 | $ 27,722 | ||||
Finite-Lived Intangible Assets, Gross | 27,502 | 27,502 | 27,502 | |||
Finite-Lived Intangible Assets, Accumulated Amortization | 7,584 | 7,584 | 6,359 | |||
Finite-Lived Intangible Assets, Net | 19,918 | 19,918 | 21,143 | |||
Finite-Lived Intangible Asset, Expected Amortization, Remainder of Fiscal Year | 1,146 | 1,146 | ||||
Finite-Lived Intangible Asset, Expected Amortization, Year One | 2,145 | 2,145 | ||||
Finite-Lived Intangible Asset, Expected Amortization, Year Two | 2,034 | 2,034 | ||||
Finite-Lived Intangible Asset, Expected Amortization, Year Three | 1,922 | 1,922 | ||||
Finite-Lived Intangible Asset, Expected Amortization, Year Four | 1,846 | 1,846 | ||||
Finite-Lived Intangible Asset, Expected Amortization, after Year Five | 10,825 | 10,825 | ||||
Finite-Lived Intangible Asset, Expected Amortization, Year Five | 10,825 | 10,825 | ||||
Goodwill | 24,262 | 24,262 | 24,262 | |||
Goodwill [Line Items] | ||||||
Goodwill | 24,262 | 24,262 | 24,262 | |||
Equity income in investee | 7 | $ 6 | 14 | $ 7 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | 7,584 | 7,584 | 6,359 | |||
Finite-Lived Intangible Assets, Net | 19,918 | 19,918 | 21,143 | |||
Finite-Lived Intangible Assets, Gross | 27,502 | 27,502 | 27,502 | |||
Intangible Assets, Gross (Excluding Goodwill) | 27,722 | $ 27,722 | ||||
Acquisition-related intangibles, net | 20,138 | 20,138 | 21,363 | |||
Segment Reporting, Reconciling Item, Corporate Nonsegment | ||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||
Amortization of Intangible Assets | 603 | 693 | 1,200 | 1,500 | ||
Goodwill [Line Items] | ||||||
Amortization of Intangible Assets | 603 | 693 | 1,200 | 1,500 | ||
Other Intangible Assets | ||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||
Indefinite-lived Intangible Assets (Excluding Goodwill) | 220 | 220 | 220 | |||
Goodwill [Line Items] | ||||||
Indefinite-lived Intangible Assets (Excluding Goodwill) | 220 | 220 | 220 | |||
Developed technology | ||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||
Finite-Lived Intangible Assets, Gross | 13,390 | 13,390 | 13,390 | |||
Finite-Lived Intangible Assets, Accumulated Amortization | 2,045 | 2,045 | 1,583 | |||
Finite-Lived Intangible Assets, Net | 11,345 | 11,345 | 11,807 | |||
Goodwill [Line Items] | ||||||
Finite-Lived Intangible Assets, Accumulated Amortization | 2,045 | 2,045 | 1,583 | |||
Finite-Lived Intangible Assets, Net | 11,345 | 11,345 | 11,807 | |||
Finite-Lived Intangible Assets, Gross | 13,390 | 13,390 | 13,390 | |||
Customer relationships | ||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||
Finite-Lived Intangible Assets, Gross | 12,324 | 12,324 | 12,324 | |||
Finite-Lived Intangible Assets, Accumulated Amortization | 4,479 | 4,479 | 3,755 | |||
Finite-Lived Intangible Assets, Net | 7,845 | 7,845 | 8,569 | |||
Goodwill [Line Items] | ||||||
Finite-Lived Intangible Assets, Accumulated Amortization | 4,479 | 4,479 | 3,755 | |||
Finite-Lived Intangible Assets, Net | 7,845 | 7,845 | 8,569 | |||
Finite-Lived Intangible Assets, Gross | 12,324 | 12,324 | 12,324 | |||
Customer backlog | ||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||
Finite-Lived Intangible Assets, Gross | 809 | 809 | 809 | |||
Finite-Lived Intangible Assets, Accumulated Amortization | 809 | 809 | 809 | |||
Finite-Lived Intangible Assets, Net | 0 | 0 | 0 | |||
Goodwill [Line Items] | ||||||
Finite-Lived Intangible Assets, Accumulated Amortization | 809 | 809 | 809 | |||
Finite-Lived Intangible Assets, Net | 0 | 0 | 0 | |||
Finite-Lived Intangible Assets, Gross | 809 | 809 | 809 | |||
Corporate trade name | ||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||
Finite-Lived Intangible Assets, Gross | 65 | 65 | 65 | |||
Finite-Lived Intangible Assets, Accumulated Amortization | 65 | 65 | 65 | |||
Finite-Lived Intangible Assets, Net | 0 | 0 | 0 | |||
Goodwill [Line Items] | ||||||
Finite-Lived Intangible Assets, Accumulated Amortization | 65 | 65 | 65 | |||
Finite-Lived Intangible Assets, Net | 0 | 0 | 0 | |||
Finite-Lived Intangible Assets, Gross | 65 | 65 | 65 | |||
Product trademarks | ||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||
Finite-Lived Intangible Assets, Gross | 914 | 914 | 914 | |||
Finite-Lived Intangible Assets, Accumulated Amortization | 186 | 186 | 147 | |||
Finite-Lived Intangible Assets, Net | 728 | 728 | 767 | |||
Goodwill [Line Items] | ||||||
Finite-Lived Intangible Assets, Accumulated Amortization | 186 | 186 | 147 | |||
Finite-Lived Intangible Assets, Net | 728 | 728 | 767 | |||
Finite-Lived Intangible Assets, Gross | 914 | 914 | $ 914 | |||
ATMP JV | Joint Venture | ||||||
Goodwill [Line Items] | ||||||
Equity income in investee | $ 7 | $ 6 | $ 14 | $ 7 |
Related Parties - Equity Join_2
Related Parties - Equity Joint Ventures (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 29, 2024 USD ($) joint_venture | Jul. 01, 2023 USD ($) | Jun. 29, 2024 USD ($) joint_venture | Jul. 01, 2023 USD ($) | Dec. 30, 2023 USD ($) | |
Summary of Investment Holdings [Line Items] | |||||
Equity income in investee | $ 7 | $ 6 | $ 14 | $ 7 | |
Carrying value of investment | 113 | 113 | $ 99 | ||
Other current liabilities | 447 | 447 | 438 | ||
Receivables from related parties | $ 24 | $ 24 | 9 | ||
Joint Venture | ATMP JV | |||||
Summary of Investment Holdings [Line Items] | |||||
Ownership percentage | 15% | 15% | |||
Number of joint ventures | joint_venture | 2 | 2 | |||
Purchases from related party | $ 389 | 412 | $ 839 | 779 | |
Resale to ATMP JV | 30 | 1 | 70 | 3 | |
Equity income in investee | 7 | 6 | 14 | 7 | |
Carrying value of investment | 113 | 113 | 99 | ||
Estimated license fees expected to be earned over several years pursuant to a licensing agreement | 10 | $ 8 | 23 | $ 18 | |
Other current liabilities | 420 | 420 | 363 | ||
Receivables from related parties | $ 24 | $ 24 | $ 9 |
Debt and Revolving Facility - S
Debt and Revolving Facility - Schedule of Debt (Details) - USD ($) $ in Millions | Jun. 29, 2024 | Dec. 30, 2023 |
Debt Instrument [Line Items] | ||
Unamortized debt discount and issuance costs | $ (31) | $ (32) |
Total debt (net) | 1,719 | 2,468 |
Long-Term Debt, Current Maturities | 0 | 751 |
Long-term debt, net of current portion | 1,719 | 1,717 |
2.95% Senior Notes due 2024 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Total debt (principal amount) | 0 | 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) | $ 1,750 | 2,500 |
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 | Jun. 29, 2024 | Dec. 30, 2023 | Nov. 03, 2022 | Apr. 29, 2022 |
2.95% Senior Notes due 2024 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Total debt (principal amount) | $ 0 | $ 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 | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 3,000 | |||
Corporate debt securities | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 3,000 |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) - USD ($) $ in Millions | Jun. 29, 2024 | Dec. 30, 2023 |
Other Fair Value Disclosure [Line Items] | ||
Short-term investments | $ 1,227 | $ 1,840 |
Equity Securities without Readily Determinable Fair Value, Amount | 245 | 155 |
Debt Securities, Available-for-sale, Amortized Cost | 4,479 | 5,153 |
Short-term Investments | ||
Other Fair Value Disclosure [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 3,250 | 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 | Jun. 29, 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 | $ 2,762 | $ 3,792 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling within One Year, Fair Value | 2,762 | 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 | 457 | 364 |
Debt Securities, Available-for-sale, Amortized Cost | 4,479 | 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 | (4) | (2) |
Debt Securities, Available-for-sale | 4,475 | 5,154 |
Equity Securities without Readily Determinable Fair Value, Amount | 245 | 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 | 3,250 | 4,185 |
Debt Securities, Available-for-Sale and Held-to-Maturity, Fair Value | 3,246 | 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 | 29 | 32 |
Debt Securities, Available-for-sale | 27 | 30 |
Carrying Amount | ||
Summary of Investment Holdings [Line Items] | ||
Current portion of long-term debt, net | 0 | 751 |
Notes Payable, Fair Value Disclosure | 1,719 | 1,717 |
Estimated Fair Value | Level 2 | ||
Summary of Investment Holdings [Line Items] | ||
Current portion of long-term debt, net | 0 | 741 |
Notes Payable, Fair Value Disclosure | 1,537 | 1,630 |
Money market funds | ||
Other Fair Value Disclosure [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 1,229 | 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 | 1,229 | 969 |
Corporate debt securities | ||
Other Fair Value Disclosure [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 1,298 | 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 | (1) | 0 |
Debt Securities, Available-for-sale | 1,297 | 1,259 |
U.S. government and agency securities | ||
Other Fair Value Disclosure [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 1,586 | 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 | (1) | 0 |
Debt Securities, Available-for-sale | 1,585 | 2,490 |
Time deposits and certificates of deposits | ||
Other Fair Value Disclosure [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 161 | 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 | 161 | 214 |
Asset-backed Securities | ||
Other Fair Value Disclosure [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 33 | 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 | 31 | 33 |
Foreign Government Debt | ||
Other Fair Value Disclosure [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 172 | 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 | $ 172 | $ 189 |
Financial Instruments - Cash, C
Financial Instruments - Cash, Cash Equivalents, and Marketable Securities Fair Value Measurements (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 29, 2024 | Dec. 30, 2023 | |
Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 4,628 | $ 5,287 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 2,924 | 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 | 1,704 | 1,724 |
Cash and Cash Equivalents | Fair Value, Recurring | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 1,229 | 969 |
Cash and Cash Equivalents | Fair Value, Recurring | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 995 | 753 |
Cash and Cash Equivalents | Fair Value, Recurring | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 724 | 1,252 |
Cash and Cash Equivalents | Fair Value, Recurring | Time deposits and certificates of deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 151 | 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 | 149 | 135 |
Cash and Cash Equivalents | Level 1 | Fair Value, Recurring | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 1,229 | 969 |
Cash and Cash Equivalents | Level 1 | Fair Value, Recurring | Corporate 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 | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 724 | 1,252 |
Cash and Cash Equivalents | Level 1 | Fair Value, Recurring | Time deposits and certificates of deposits | ||
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 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 | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring | 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 | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 995 | 753 |
Cash and Cash Equivalents | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring | U.S. government and agency 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 | Time deposits and certificates of deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 151 | 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 | 149 | 135 |
Short-term Investments | Fair Value, Recurring | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 302 | 506 |
Short-term Investments | Fair Value, Recurring | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 861 | 1,237 |
Short-term Investments | Fair Value, Recurring | Time deposits and certificates of deposits | ||
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 | 31 | 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 | 23 | 54 |
Short-term Investments | Level 1 | Fair Value, Recurring | Corporate debt 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 | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 818 | 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 | 0 |
Short-term Investments | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 302 | 506 |
Short-term Investments | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 43 | 28 |
Short-term Investments | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring | Time deposits and certificates of deposits | ||
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 | 31 | 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 | 23 | 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 | 153 | 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 | 153 | 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 | $ 2,100 | 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 | $ 460 | $ 568 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Numerator | ||||
Net income (loss) for basic earnings per share | $ 265 | $ 27 | $ 388 | $ (112) |
Denominator | ||||
Basic weighted-average shares (in shares) | 1,618 | 1,612 | 1,617 | 1,612 |
Incremental Weighted Average Shares Attributable to Dilutive Effect [Abstract] | ||||
Employee equity plans and warrants (in shares) | 19 | 15 | 21 | 0 |
Diluted weighted-average shares (in shares) | 1,637 | 1,627 | 1,638 | 1,612 |
Diluted (in usd per share) | $ 0.16 | $ 0.02 | $ 0.24 | $ (0.07) |
Basic (in usd per share) | $ 0.16 | $ 0.02 | $ 0.24 | $ (0.07) |
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 | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Increase (Decrease) in Stockholders' Equity | ||||
Balance, beginning of period (in shares) | 1,663,000 | |||
Balance, end of period (in shares) | 1,668,000 | 1,668,000 | ||
Stock Repurchase Program, Authorized Amount | $ 12,000 | $ 12,000 | ||
Payments for Repurchase of Common Stock | 356 | $ 241 | ||
Repurchases of common stock | 352 | 356 | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 5,200 | 5,200 | ||
Stock Repurchase Program, Authorized Amount | $ 12,000 | $ 12,000 | ||
Common stock, par value | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Balance, beginning of period (in shares) | 1,618,000 | 1,609,000 | 1,616,000 | 1,612,000 |
Common stock issued under employee equity plans (in shares) | 2,000 | 4,000 | 5,000 | 5,000 |
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | 0 | 0 | (1,000) | (1,000) |
Issuance of common stock to settle convertible debt (in shares) | 0 | 1,000 | 0 | 1,000 |
Balance, end of period (in shares) | 1,618,000 | 1,614,000 | 1,618,000 | 1,614,000 |
Stock Repurchased During Period, Shares | (2,000) | 0 | (2,000) | (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 | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 346 | $ 348 | $ 717 | $ 657 |
Cost of sales | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 5 | 10 | 11 | 18 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 262 | 247 | 541 | 461 |
Marketing, general and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 79 | $ 91 | $ 165 | $ 178 |
Common Stock and Employee Equ_5
Common Stock and Employee Equity Plans (Details) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 29, 2024 USD ($) | Jun. 29, 2024 USD ($) | |
Equity [Abstract] | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 5,200 | $ 5,200 |
Repurchases of common stock | $ 352 | $ 356 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | Dec. 30, 2023 | |
Income Tax Disclosure [Abstract] | |||||
Income tax provision (benefit) | $ 41 | $ (23) | $ (11) | $ (10) | |
Effective tax rate | 13.40% | (511.40%) | (2.90%) | 8% | |
Deferred tax liabilities | $ 1,192 | $ 1,192 | $ 1,202 | ||
Accrued Income Taxes, Noncurrent | $ 1,500 | $ 1,500 | $ 1,400 |
Contingencies (Details)
Contingencies (Details) $ in Millions | Jun. 29, 2024 USD ($) |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Unrecorded Unconditional Purchase Obligation, to be Paid, Remainder of Fiscal Year | $ 3,056 |
Unrecorded Unconditional Purchase Obligation, Including Lease Not yet Commenced, to be Paid, Year Two | 371 |
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 | 44 |
Unrecorded Unconditional Purchase Obligation, Including Lease Not yet Commenced, to be Paid, after Year Five | 95 |
Unrecorded Unconditional Purchase Obligation, Including Lease Not yet Commenced, Total | 3,878 |
Recorded Unconditional Purchase Obligation, to be Paid, Year Three | $ 268 |