Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 28, 2013 | Oct. 28, 2013 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 28-Sep-13 | |
Document Fiscal Year Focus | 2013 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | AMD | |
Entity Registrant Name | ADVANCED MICRO DEVICES INC | |
Entity Central Index Key | 2488 | |
Current Fiscal Year End Date | -16 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 723,686,830 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Net revenue | $1,461 | $1,269 | $3,710 | $4,267 |
Cost of sales | 940 | 877 | 2,285 | 3,210 |
Gross margin | 521 | 392 | 1,425 | 1,057 |
Research and development | 288 | 328 | 908 | 1,041 |
Marketing, general and administrative | 155 | 188 | 505 | 630 |
Amortization of acquired intangible assets | 5 | 4 | 14 | 9 |
Restructuring and other special charges (gains), net | -22 | 3 | 30 | 11 |
Operating income (loss) | 95 | -131 | -32 | -634 |
Interest income | 1 | 2 | 4 | 6 |
Interest expense | -47 | -44 | -133 | -130 |
Other income (expense), net | 2 | 16 | -3 | 10 |
Income (loss) before income taxes | 51 | -157 | -164 | -748 |
Provision (benefit) for income taxes | 3 | 0 | 8 | -38 |
Net income (loss) | $48 | ($157) | ($172) | ($710) |
Net income (loss) per share | ||||
Basic net income (loss) per share | $0.06 | ($0.21) | ($0.23) | ($0.96) |
Diluted net income (loss) per share | $0.06 | ($0.21) | ($0.23) | ($0.96) |
Shares used in per share calculation: | ||||
Basic | 757 | 745 | 753 | 739 |
Diluted | 764 | 745 | 753 | 739 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Net income (loss) | $48 | ($157) | ($172) | ($710) |
Unrealized gains (losses) on cash flow hedges: | ||||
Unrealized gains (losses) arising during the period, net of tax effects of $0, $1, $(2) and $1 | 3 | 3 | 0 | 3 |
Reclassification adjustment for (gains) losses realized and included in net income (loss), net of tax effects of zero | 1 | 0 | 1 | 1 |
Other comprehensive income (loss), cash flow hedges, net of tax | 4 | 3 | 1 | 4 |
Total other comprehensive income | 4 | 3 | 1 | 4 |
Total comprehensive income (loss) | $52 | ($154) | ($171) | ($706) |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Tax effect related to unrealized gains (losses) on cash flow hedges: | ||||
Unrealized gains (losses) arising during period | $0 | ($1) | $2 | ($1) |
Reclassification adjustment for (gains) losses realized and included in net income (loss) | $0 | $0 | $0 | $0 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 28, 2013 | Dec. 29, 2012 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $543 | $549 |
Marketable securities | 517 | 453 |
Total cash and cash equivalents and marketable securities | 1,060 | 1,002 |
Accounts receivable, net | 873 | 630 |
Inventories, net | 922 | 562 |
Prepaid expenses and other current assets | 84 | 71 |
Total current assets | 2,939 | 2,265 |
Long-term marketable securities | 121 | 181 |
Property, plant and equipment, net | 358 | 658 |
Acquisition related intangible assets, net | 82 | 96 |
Goodwill | 553 | 553 |
Other assets | 264 | 247 |
Total assets | 4,317 | 4,000 |
Current liabilities: | ||
Accounts payable | 574 | 278 |
Payable to GLOBALFOUNDRIES | 495 | 454 |
Accrued liabilities | 528 | 489 |
Deferred income on shipments to distributors | 139 | 108 |
Current portion of long-term debt and capital lease obligations | 5 | 5 |
Other current liabilities | 21 | 63 |
Total current liabilities | 1,762 | 1,397 |
Long-term debt and capital lease obligations, less current portion | 2,044 | 2,037 |
Other long-term liabilities | 77 | 28 |
Capital stock: | ||
Common stock, par value $0.01; 1,500 shares authorized on September 28, 2013 and December 29, 2012; shares issued: 733 shares on September 28, 2013 and 722 shares on December 29, 2012; shares outstanding: 723 shares on September 28, 2013 and 713 shares on December 29, 2012 | 7 | 7 |
Additional paid-in capital | 6,872 | 6,803 |
Treasury stock, at cost (10 shares on September 28, 2013 and 9 shares on December 29, 2012) | -111 | -109 |
Accumulated deficit | -6,332 | -6,160 |
Accumulated other comprehensive loss | -2 | -3 |
Total stockholders' equity | 434 | 538 |
Total liabilities and stockholders' equity | $4,317 | $4,000 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 |
In Millions, except Per Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 1,500 | 1,500 |
Common stock, shares issued | 733 | 722 |
Common stock, shares outstanding | 723 | 713 |
Treasury stock, shares | 10 | 9 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 |
Cash flows from operating activities: | ||
Net loss | ($172) | ($710) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Non-cash portion of the limited waiver of exclusivity from GLOBALFOUNDRIES | 0 | 278 |
Depreciation and amortization | 182 | 194 |
Net loss on disposal of property, plant and equipment | 30 | 0 |
Benefit for deferred income taxes | 0 | -41 |
Stock-based compensation expense | 67 | 74 |
Non-cash interest expense | 18 | 17 |
Other | 1 | -1 |
Changes in operating assets and liabilities: | ||
Accounts receivable | -242 | 237 |
Inventories | -360 | -266 |
Prepaid expenses and other current assets | -18 | -30 |
Other assets | -67 | -13 |
Payable to GLOBALFOUNDRIES | 41 | 271 |
Accounts payable, accrued liabilities and other | 351 | -62 |
Net cash used in operating activities | -169 | -52 |
Cash flows from investing activities: | ||
Acquisition of SeaMicro, Inc., net of cash acquired | 0 | -281 |
Purchases of property, plant and equipment | -63 | -111 |
Proceeds from sale of property, plant, and equipment | 238 | 0 |
Purchases of available-for-sale securities | -985 | -749 |
Proceeds from sales and maturities of available-for-sale securities | 969 | 1,091 |
Other | 0 | -23 |
Net cash provided by (used in) investing activities | 159 | -73 |
Cash flows from financing activities: | ||
Proceeds from borrowings, net of issuance cost | 0 | 491 |
Net proceeds from foreign grants | 6 | 18 |
Proceeds from issuance of common stock | 3 | 12 |
Repayments of debt and capital lease obligations | -4 | -488 |
Other | 1 | 1 |
Net cash provided by financing activities | 4 | 32 |
Net decrease in cash and cash equivalents | -6 | -93 |
Cash and cash equivalents at beginning of period | 549 | 869 |
Cash and cash equivalents at end of period | $543 | $776 |
Basis_of_Presentation_and_Sign
Basis of Presentation and Significant Accounting Policies (Notes) | 9 Months Ended |
Sep. 28, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies |
Basis of Presentation. The accompanying unaudited condensed consolidated financial statements of Advanced Micro Devices, Inc. and its subsidiaries (the Company or AMD) have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. The results of operations for the quarter and nine months ended September 28, 2013 shown in this report are not necessarily indicative of results to be expected for the full year ending December 28, 2013. In the opinion of the Company’s management, the information contained herein reflects all adjustments necessary for a fair presentation of the Company’s results of operations, financial position and cash flows. All such adjustments are of a normal, recurring nature. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 29, 2012. | |
The Company uses a 52 or 53 week fiscal year ending on the last Saturday in December. The quarters and nine months ended September 28, 2013 and September 29, 2012 each consisted of 13 and 39 weeks, respectively. | |
Principles of Consolidation. The condensed consolidated financial statements include the Company’s accounts and those of its wholly-owned subsidiaries. Upon consolidation, all significant intercompany accounts and transactions are eliminated. | |
Recently Adopted Accounting Standards. In February 2013, the FASB issued Accounting Standard Update (ASU) 2013-02, Comprehensive Income (Topic 220) - Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, which requires an entity to present the effect on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income, but only if the item reclassified is required under GAAP to be reclassified to net income in its entirety in the same reporting period. ASU 2013-02 became effective for fiscal years and interim periods within those years beginning after December 15, 2012. The Company adopted this standard during the first quarter of 2013. The adoption of this standard only impacted the presentation of the Company's condensed consolidated financial statements. |
GLOBALFOUNDRIES_Notes
GLOBALFOUNDRIES (Notes) | 9 Months Ended |
Sep. 28, 2013 | |
Related Party Transactions [Abstract] | |
GLOBALFOUNDRIES | GLOBALFOUNDRIES |
Wafer Supply Agreement. The Wafer Supply Agreement (WSA) governs the terms by which the Company purchases products manufactured by GLOBALFOUNDRIES Inc. (GF). | |
Second Amendment to Wafer Supply Agreement. On March 4, 2012, the Company entered into a second amendment to the WSA with GF. The primary effect of this second amendment was to modify certain pricing and other terms of the WSA applicable to wafers for the Company’s microprocessor and accelerated processing unit (APU) products to be delivered by GF to the Company during 2012. | |
The second amendment also granted the Company certain rights to contract with another wafer foundry supplier with respect to specified 28nm products for a specified period of time. In consideration for these rights, the Company agreed to pay GF $425 million and transfer to GF all of the capital stock of GF that it owned. As a result of the Company receiving these rights in the first quarter of 2012, the Company recorded a charge related to this limited waiver of exclusivity from GF of $703 million consisting of the $425 million cash payment and a $278 million non-cash charge representing the carrying and fair value of the capital stock that the Company transferred to GF. Pursuant to the second amendment, the Company paid the full amount of $425 million by December 31, 2012. Of this amount, the final portion of $175 million was paid during the Company's first fiscal quarter of 2013. | |
Third Amendment to Wafer Supply Agreement. On December 6, 2012, the Company entered into a third amendment to the WSA with GF. Pursuant to the third amendment, the Company modified its wafer purchase commitments for the fourth quarter of 2012 under the second amendment to the WSA. In addition, the Company agreed to certain pricing and other terms of the WSA applicable to wafers for the Company's microprocessor and APU products to be delivered by GF to the Company during 2013 and through December 31, 2013. Pursuant to the third amendment, the Company committed to purchase a fixed number of production wafers at negotiated prices in the fourth quarter of 2012 and through December 31, 2013. GF agreed to waive a portion of the Company’s wafer purchase commitments for the fourth quarter of 2012. In consideration of this waiver, the Company agreed to pay GF a fee of $320 million, of which $80 million was paid on December 31, 2012 and $40 million was paid on April 1, 2013, with the remaining $200 million payable by December 31, 2013, pursuant to a promissory note issued by the Company to GF. As a result, the Company recorded a “lower of cost or market,” or LCM charge, of $273 million for the write-down of inventory to its market value in the fourth quarter of 2012. | |
GF is a related party of the Company. The Company’s total purchases from GF related to wafer manufacturing and research and development activities in the quarter and nine months ended September 28, 2013 were approximately $221 million and $746 million, respectively. The Company’s total purchases from GF related to wafer manufacturing and research and development activities during the quarter and nine months ended September 29, 2012 were approximately $263 million and $1,098 million, respectively. | |
The Company's current estimates for wafer purchase obligations to GF under the WSA, as amended, are approximately $1.15 billion in 2013 and $250 million in the first quarter of 2014. The Company is not able to meaningfully quantify or estimate its purchase obligations to GF beyond the first quarter of 2014, but it expects that its future purchases from GF will continue to be material. |
Sale_and_Leaseback_Transaction
Sale and Leaseback Transactions (Notes) | 9 Months Ended |
Sep. 28, 2013 | |
Leases [Abstract] | |
Sale and Leaseback Transactions | Sale and Leaseback Transactions |
In September 2013, the Company sold a light industrial building in Singapore and leased back a portion of the original space. The Company received net proceeds of $46 million in connection with the sale. The difference between the net proceeds and the $15 million carrying value of property sold resulted in a $17 million gain recorded by the Company in the third quarter of 2013 and a $14 million gain deferred as of September 28, 2013 that will be amortized over the initial lease term. The initial lease term expires in September 2023 and provides for options to extend the lease for 4 years, at the end of the initial lease term, and for an additional 3.5 years thereafter. The Company accounted for the lease as an operating lease. | |
In September 2013, the Company also sold an office building in Austin, Texas. The Company received net proceeds of $10 million in connection with the sale and recorded a $5 million gain in the third quarter of 2013, primarily related to the difference between the sale proceeds and the $5 million carrying value of the property sold. | |
In March 2013, the Company sold and leased back land and office buildings in Austin. The Company received net proceeds of $164 million in connection with the sale and recorded a $52 million charge in the first quarter of 2013, primarily related to the difference between the sale proceeds and the $216 million carrying value of the property sold. The lease expires in March 2025 and provides for one 10-year optional renewal. The Company accounted for the lease as an operating lease. | |
In March 2013, the Company also sold an office building in Markham, Ontario, Canada and leased back a portion of the original space. The Company received net proceeds of $13 million in connection with the sale and recorded a $6 million gain in the first quarter of 2013, primarily related to the difference between the sale proceeds and the $7 million carrying value of the property sold. The lease was to expire in March 2014 but contained an early termination provision, which the Company exercised effective June 30, 2013. While occupied, the Company accounted for the lease as an operating lease. | |
The $22 million gain recognized in the third quarter of 2013 and the net charge of $24 million related to the real estate transactions described above for the first nine months of 2013 are recorded as "Restructuring and other special charges (gains), net" on the condensed consolidated statements of operations. |
Supplemental_Balance_Sheet_Inf
Supplemental Balance Sheet Information (Notes) | 9 Months Ended | |||||||
Sep. 28, 2013 | ||||||||
Balance Sheet Related Disclosures [Abstract] | ||||||||
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information | |||||||
Accounts Receivable | ||||||||
September 28, | December 29, | |||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
Accounts receivable | $ | 874 | $ | 632 | ||||
Allowance for doubtful accounts | (1 | ) | (2 | ) | ||||
Total accounts receivable, net | $ | 873 | $ | 630 | ||||
Inventories | ||||||||
September 28, | December 29, | |||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
Raw materials | $ | 30 | $ | 29 | ||||
Work in process | 667 | 357 | ||||||
Finished goods | 225 | 176 | ||||||
Total inventories, net | $ | 922 | $ | 562 | ||||
Property, Plant and Equipment | ||||||||
September 28, | December 29, | |||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
Land and land improvements | $ | 7 | $ | 31 | ||||
Buildings and leasehold improvements | 238 | 591 | ||||||
Equipment | 1,505 | 1,585 | ||||||
Construction in progress | 16 | 11 | ||||||
1,766 | 2,218 | |||||||
Accumulated depreciation and amortization | (1,408 | ) | (1,560 | ) | ||||
Total property, plant and equipment, net | $ | 358 | $ | 658 | ||||
Accrued Liabilities | ||||||||
September 28, | December 29, | |||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
Accrued compensation and benefits | $ | 190 | $ | 158 | ||||
Marketing programs and advertising expenses | 158 | 160 | ||||||
Software technology and licenses payable | 21 | 18 | ||||||
Other | 159 | 153 | ||||||
Total accrued liabilities | $ | 528 | $ | 489 | ||||
Net_Income_Loss_Per_Share_Note
Net Income (Loss) Per Share (Notes) | 9 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||
Net Income (Loss) Per Share | Net Income (Loss) Per Share | ||||||||||||||||
Basic net income (loss) per share is computed based on the weighted average number of shares outstanding and shares issuable upon exercise of warrants issued by the Company to West Coast Hitech L.P., in connection with the initial GF transaction in 2009. The warrants became exercisable on July 24, 2009. | |||||||||||||||||
Diluted net income (loss) per share is computed based on the weighted average number of shares outstanding plus any potentially dilutive shares outstanding. Potentially dilutive shares include stock options, restricted stock units and shares issuable upon the conversion of convertible debt. | |||||||||||||||||
The following table sets forth the components of basic and diluted income (loss) per share: | |||||||||||||||||
Quarter Ended | Nine Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(In millions, except per share amounts) | |||||||||||||||||
Numerator – Net income (loss): | |||||||||||||||||
Numerator for basic and diluted net income (loss) per share | $ | 48 | $ | (157 | ) | $ | (172 | ) | $ | (710 | ) | ||||||
Denominator – Weighted average shares | |||||||||||||||||
Denominator for basic net income (loss) per share | 757 | 745 | 753 | 739 | |||||||||||||
Effect of potentially dilutive shares: | |||||||||||||||||
Employee stock options and restricted stock units | 7 | — | — | — | |||||||||||||
Denominator for diluted net income (loss) per share | 764 | 745 | 753 | 739 | |||||||||||||
Net income (loss) per share: | |||||||||||||||||
Basic | $ | 0.06 | $ | (0.21 | ) | $ | (0.23 | ) | $ | (0.96 | ) | ||||||
Diluted | $ | 0.06 | $ | (0.21 | ) | $ | (0.23 | ) | $ | (0.96 | ) | ||||||
Potential shares from outstanding stock options and restricted stock awards totaling approximately 53 million were not included in the net income per share calculation for the third quarter of 2013 because their inclusion would have been anti-dilutive. | |||||||||||||||||
Potential shares from outstanding stock options and restricted stock awards totaling approximately 61 million were not included in the net loss per share calculation for the nine months ended September 28, 2013 because their inclusion would have been anti-dilutive. | |||||||||||||||||
Potential shares (i) from outstanding stock options and restricted stock awards totaling approximately 71 million and (ii) issuable under the 5.75% Convertible Senior Notes due 2012 (5.75% Notes) totaling 12 million were not included in the net loss per share calculation for the third quarter of 2012 because their inclusion would have been anti-dilutive. | |||||||||||||||||
Potential shares (i) from outstanding stock options and restricted stock awards totaling approximately 62 million and (ii) issuable under the 5.75% Notes totaling 20 million were not included in the net loss per share calculation for the nine months ended September 29, 2012 because their inclusion would have been anti-dilutive. |
Financial_Instruments_Notes
Financial Instruments (Notes) | 9 Months Ended | |||||||||||||||
Sep. 28, 2013 | ||||||||||||||||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||||||||||||||||
Financial Instruments | Financial Instruments | |||||||||||||||
Available-for-sale securities held by the Company as of September 28, 2013 and December 29, 2012 were as follows: | ||||||||||||||||
September 28, | December 29, | |||||||||||||||
2013 | 2012 | |||||||||||||||
(In millions) | ||||||||||||||||
Fair Value | ||||||||||||||||
Classified as cash equivalents: | ||||||||||||||||
Money market funds | $ | — | $ | 402 | ||||||||||||
Commercial paper | 150 | 75 | ||||||||||||||
Time deposits | 25 | — | ||||||||||||||
Total classified as cash equivalents | $ | 175 | $ | 477 | ||||||||||||
Classified as current marketable securities: | ||||||||||||||||
Commercial paper | $ | 452 | $ | 324 | ||||||||||||
Time deposits | 50 | 100 | ||||||||||||||
Auction rate securities | 15 | 28 | ||||||||||||||
Marketable equity security | — | 1 | ||||||||||||||
Total classified as current marketable securities | $ | 517 | $ | 453 | ||||||||||||
Classified as long-term marketable securities: | ||||||||||||||||
Money market funds | $ | — | $ | 13 | ||||||||||||
Corporate bonds | 121 | 168 | ||||||||||||||
Total classified as long-term marketable securities | $ | 121 | $ | 181 | ||||||||||||
Classified as other assets: | ||||||||||||||||
Money market funds | $ | 18 | $ | 10 | ||||||||||||
Mutual funds | 13 | 14 | ||||||||||||||
Total classified as other assets | $ | 31 | $ | 24 | ||||||||||||
The amortized cost of available-for-sale securities approximates the fair value for all periods presented. | ||||||||||||||||
As of September 28, 2013 and December 29, 2012, the Company had approximately $18 million and $10 million of available-for-sale investments in money market funds used as collateral for leased buildings and letter of credit deposits, which were included in other assets on the Company’s condensed consolidated balance sheets. The Company is restricted from accessing these deposits. | ||||||||||||||||
At September 28, 2013 and December 29, 2012, the Company had approximately $13 million and $14 million of available-for-sale investments in mutual funds held in a Rabbi trust established for the Company's deferred compensation plan, which were included in other assets on the Company's condensed consolidated balance sheets. The Company is restricted from accessing these investments. | ||||||||||||||||
There were no sales of available-for-sale securities during the third quarter of 2013. The Company did not realize any gain or loss on sales of approximately $14 million available-for-sale securities during the nine months ended September 28, 2013. The cost of securities sold is determined based on the specific identification method. | ||||||||||||||||
The carrying value of the Company’s remaining auction rate securities (ARS) holdings as of September 28, 2013 was $15 million (par value $22 million). The Company has the intent and believes it has the ability to sell these ARS within the next 12 months. | ||||||||||||||||
At September 28, 2013, $121 million of investments were classified as long-term marketable securities. The Company's intent is to hold such investments for greater than one year, and the Company does not intend to use them in current operations. As a result of narrowing investment yields, the Company will continue to re-evaluate its investment strategy related to amounts designated as long-term as such investments mature. | ||||||||||||||||
All contractual maturities of the Company’s available-for-sale marketable debt securities as of September 28, 2013 were within one year, except those for ARS and certain long-term marketable securities. The Company’s ARS have stated maturities ranging from January 2036 to December 2050. The Company’s long-term marketable securities currently consist of corporate bonds. The corporate bonds have maximum stated maturities of two years. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without call or prepayment penalties. | ||||||||||||||||
Fair Value Measurements | ||||||||||||||||
Financial instruments measured and recorded at fair value on a recurring basis are summarized below: | ||||||||||||||||
Fair value measurement at reporting dates using | ||||||||||||||||
Total | Quoted Prices | Significant | Significant | |||||||||||||
in Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
(In millions) | ||||||||||||||||
September 28, 2013 | ||||||||||||||||
Assets | ||||||||||||||||
Classified as cash equivalents: | ||||||||||||||||
Commercial paper | $ | 150 | $ | — | $ | 150 | $ | — | ||||||||
Time deposits | 25 | — | 25 | — | ||||||||||||
Total classified as cash equivalents | $ | 175 | $ | — | $ | 175 | $ | — | ||||||||
Classified as current marketable securities: | ||||||||||||||||
Commercial paper | $ | 452 | $ | — | $ | 452 | $ | — | ||||||||
Time deposits | 50 | — | 50 | — | ||||||||||||
Auction rate securities | 15 | — | — | 15 | ||||||||||||
Total classified as current marketable securities | $ | 517 | $ | — | $ | 502 | $ | 15 | ||||||||
Classified as long-term marketable securities: | ||||||||||||||||
Corporate bonds | $ | 121 | $ | — | $ | 121 | $ | — | ||||||||
Total classified as long-term marketable securities | $ | 121 | $ | — | $ | 121 | $ | — | ||||||||
Classified as other assets: | ||||||||||||||||
Money market funds | $ | 18 | $ | 18 | $ | — | $ | — | ||||||||
Mutual funds | 13 | 13 | — | — | ||||||||||||
Total classified as other assets | $ | 31 | $ | 31 | $ | — | $ | — | ||||||||
Total assets measured at fair value | $ | 844 | $ | 31 | $ | 798 | $ | 15 | ||||||||
Liabilities | ||||||||||||||||
Classified as accrued liabilities – Foreign currency derivative contracts | $ | (1 | ) | $ | — | $ | (1 | ) | $ | — | ||||||
Total liabilities measured at fair value | $ | (1 | ) | $ | — | $ | (1 | ) | $ | — | ||||||
December 29, 2012 | ||||||||||||||||
Assets | ||||||||||||||||
Classified as cash equivalents: | ||||||||||||||||
Money market funds | $ | 402 | $ | 402 | $ | — | $ | — | ||||||||
Commercial paper | 75 | — | 75 | — | ||||||||||||
Total classified as cash equivalents | $ | 477 | $ | 402 | $ | 75 | $ | — | ||||||||
Classified as current marketable securities: | ||||||||||||||||
Commercial paper | $ | 324 | $ | — | $ | 324 | $ | — | ||||||||
Time deposits | 100 | — | 100 | — | ||||||||||||
Auction rate securities | 28 | — | — | 28 | ||||||||||||
Marketable equity security | 1 | 1 | — | — | ||||||||||||
Total classified as current marketable securities | $ | 453 | $ | 1 | $ | 424 | $ | 28 | ||||||||
Classified as long-term marketable securities: | ||||||||||||||||
Money market funds | $ | 13 | $ | 13 | $ | — | $ | — | ||||||||
Corporate bonds | 168 | — | 168 | — | ||||||||||||
Total classified as long-term marketable securities | $ | 181 | $ | 13 | $ | 168 | $ | — | ||||||||
Classified as other assets: | ||||||||||||||||
Money market funds | $ | 10 | $ | 10 | $ | — | $ | — | ||||||||
Mutual funds | 14 | 14 | — | — | ||||||||||||
Total classified as other assets | $ | 24 | $ | 24 | $ | — | $ | — | ||||||||
Total assets measured at fair value | $ | 1,135 | $ | 440 | $ | 667 | $ | 28 | ||||||||
With the exception of its long-term debt, the Company carries its financial instruments at fair value. Investments in money market funds, commercial paper, time deposits, marketable equity securities, corporate bonds, mutual funds and foreign currency derivative contracts are classified within Level 1 or Level 2. This is because such financial instruments are valued primarily using quoted market prices or alternative pricing sources and models utilizing market observable inputs, as provided to the Company by its brokers. The Company’s Level 1 assets are valued using quoted prices for identical instruments in active markets. The Company’s Level 2 short-term investments are valued using broker reports that utilize quoted market prices for identical or comparable instruments. Brokers gather observable inputs for all of the Company’s fixed income securities from a variety of industry data providers and other third-party sources. The Company’s Level 2 long-term investments are valued using broker reports that utilize a third-party professional pricing service that gathers information from multiple market sources and integrates relevant credit information, observed market movements and sector news into their pricing evaluation. The Company validates, on a sample basis, the derived prices provided by the brokers by comparing their assessment of the fair values of the Level 2 long-term investments against the fair values of the portfolio balances of another third-party professional’s pricing services, other than that utilized by the brokers, that use a similar technique as the brokers to derive pricing as described above. The Company’s foreign currency derivative contracts are classified within Level 2 because the valuation inputs are based on quoted prices and market observable data of similar instruments in active markets, such as currency spot and forward rates. | ||||||||||||||||
The Company did not have any transfers between Level 1 and Level 2 of the fair value hierarchy during the quarters or nine months ended September 28, 2013 and September 29, 2012. | ||||||||||||||||
The ARS investments are classified within Level 3 because they are valued using a discounted cash flow model. Some of the inputs to this model are unobservable in the market and are significant. | ||||||||||||||||
The continuing uncertainties in the credit markets have affected all of the Company’s ARS investments, and auctions for these securities have failed to settle on their respective settlement dates since February 2008. As a result, reliable Level 1 or Level 2 pricing is not available for these ARS. In light of these developments, the Company performs its own discounted cash flow analysis to value these ARS. As of September 28, 2013 and December 29, 2012, the Company’s significant inputs and assumptions used in the discounted cash flow model to determine the fair value of its ARS include interest rate, liquidity and credit discounts and the estimated life of the ARS investments. The outcomes of these analyses indicated that the fair value of the ARS remained relatively unchanged as of September 28, 2013 when compared to the fair value as of December 29, 2012. As of September 28, 2013, these Level 3 ARS accounted for approximately one percent of the Company’s total cash, cash equivalents and current marketable securities. | ||||||||||||||||
The roll-forward of the ARS measured at fair value on a recurring basis using significant unobservable inputs (Level 3), is as follows: | ||||||||||||||||
Quarter Ended | Nine Months Ended | |||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(In millions) | ||||||||||||||||
Beginning balance | $ | 15 | $ | 32 | $ | 28 | $ | 38 | ||||||||
Redemptions | — | — | (13 | ) | (6 | ) | ||||||||||
Ending balance | $ | 15 | $ | 32 | $ | 15 | $ | 32 | ||||||||
The Company’s significant inputs and assumptions used in the discounted cash flow model to determine the fair value of its ARS are listed below: | ||||||||||||||||
September 28, | December 29, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Discount rate for periodic interest payments | 0.63 | % | 0.84 | % | ||||||||||||
Discount rate for principal repayments | 1.26 | % | 1.31 | % | ||||||||||||
Liquidity discount | 0.9 | % | 0.9 | % | ||||||||||||
Credit discount | 2.00% to 12.00% | 2.00% to 12.00% | ||||||||||||||
Estimated period (years) | 17 to 20 years | 17 to 20 years | ||||||||||||||
Significant increases (decreases) in the significant inputs and assumptions above in isolation would result in a significantly lower (higher) fair value measurement. There is no interrelationship between changes in the inputs. | ||||||||||||||||
Financial Instruments Not Recorded at Fair Value on a Recurring Basis. Financial instruments that are not recorded at fair value are measured at fair value on a quarterly basis for disclosure purposes. The carrying amounts and estimated fair values of financial instruments not recorded at fair value are as follows: | ||||||||||||||||
September 28, 2013 | December 29, 2012 | |||||||||||||||
Carrying | Estimated | Carrying | Estimated | |||||||||||||
Amount | Fair Value | Amount | Fair Value | |||||||||||||
(In millions) | ||||||||||||||||
Long-term debt (excluding capital leases) | $ | 2,031 | $ | 2,105 | $ | 2,019 | $ | 1,837 | ||||||||
The fair value of the Company’s short-term and long-term debt, Level 2 financial instruments, was estimated based on the quoted market prices for the same or similar issues or on the current rates offered to the Company for debt of the same remaining maturities. The fair value of the Company’s accounts receivable, accounts payable and other short-term obligations approximate their carrying value based on existing payment terms. |
Income_Taxes_Notes
Income Taxes (Notes) | 9 Months Ended |
Sep. 28, 2013 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes |
The Company recorded an income tax provision of $3 million in the third quarter of 2013 and did not record any income tax provision in the third quarter of 2012. For the nine months ended September 28, 2013, the Company recorded an income tax provision of $8 million. For the nine months ended September 29, 2012, the Company recorded an income tax benefit of $38 million. | |
In the third quarter of 2013, the income tax provision of $3 million was due to $2 million of foreign taxes in profitable locations and $1 million related to the reversal of previously recognized tax benefits associated with other comprehensive income. The $8 million income tax provision recorded in the nine months ended September 28, 2013 was due to $7 million of foreign taxes in profitable locations and $3 million related to the reversal of previously recognized tax benefits associated with other comprehensive income offset by $2 million of tax benefits for Canadian co-op credits and monetization of U.S. tax credits. | |
In the third quarter of 2012, the Company did not record any income tax provision due to foreign taxes in profitable locations of $2 million offset by $1 million tax benefit for the tax effects of items credited directly to other comprehensive income and $1 million of Canadian tax benefits from co-op tax credits. The $38 million income tax benefit recorded in the nine months ended September 29, 2012 was due to a tax benefit of $36 million relating to the SeaMicro acquisition, a $2 million tax benefit for the tax effects of items credited directly to other comprehensive income, a $1 million tax benefit for Canadian co-op tax credits and a $9 million tax benefit associated with the successful negotiation of a tax holiday in a foreign jurisdiction net of $10 million of foreign taxes in profitable locations. | |
Purchase accounting for the SeaMicro acquisition required the establishment of a deferred tax liability related to the book tax basis differences of identifiable intangible assets that increased goodwill. The deferred tax liability created an additional source of U.S. future taxable income which resulted in a release of a portion of the Company's U.S. valuation allowance. This resulted in a discrete income tax benefit of approximately $36 million in the first quarter of 2012. | |
As of September 28, 2013, substantially all of the Company's U.S. and Canadian deferred tax assets, net of deferred tax liabilities, continue to be subject to a valuation allowance. The realization of these assets is dependent on substantial future taxable income which at September 28, 2013, in management's estimate, is not more likely than not to be achieved. | |
The Company's unrecognized tax benefits increased by $2 million during the third quarter of 2013 for unrecognized tax benefits in foreign jurisdictions. The total gross unrecognized tax benefits as of September 28, 2013 were approximately $56 million. The Company has recognized $3 million of liabilities for unrecognized tax benefits as of September 28, 2013. There were no material changes to accrued interest or penalties in the third quarter of 2013. | |
During the twelve months beginning September 28, 2013, the Company believes that it is reasonably possible that there will be no material changes in its unrecognized tax benefits. However, the resolution and/or closure of open audits are highly uncertain. |
Segment_Reporting_Notes
Segment Reporting (Notes) | 9 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
Segment Reporting | Segment Reporting | ||||||||||||||||
Management, including the Chief Operating Decision Maker, who is the Company’s Chief Executive Officer, reviews and assesses operating performance using segment net revenues and operating income (loss) before interest, other income (expense), net, and income taxes. These performance measures include the allocation of expenses to the operating segments based on management’s judgment. | |||||||||||||||||
The Company uses the following two reportable segments: | |||||||||||||||||
• | the Computing Solutions segment, which includes x86 microprocessors, as standalone devices or as incorporated as an APU, chipsets, embedded processors and dense servers; and | ||||||||||||||||
• | the Graphics and Visual Solutions segment, which includes graphics processing units (GPU), including professional graphics, and semi-custom System-on-Chip (SOC) products, as well as revenue received in connection with development services and game console royalties. | ||||||||||||||||
In addition to these reportable segments, the Company has an All Other category, which is not a reportable segment. This category includes certain expenses and credits that are not allocated to any of the operating segments because management does not consider these expenses and credits in evaluating the performance of the operating segments. Also included in this category are amortization of acquired intangible assets, employee stock-based compensation expense, restructuring and other special charges (gains), net, and a charge related to the limited waiver of exclusivity from GF. | |||||||||||||||||
The following table provides a summary of net revenue and operating income (loss) by segment and category: | |||||||||||||||||
Quarter Ended | Nine Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(In millions) | |||||||||||||||||
Net revenue: | |||||||||||||||||
Computing Solutions | $ | 790 | $ | 927 | $ | 2,382 | $ | 3,176 | |||||||||
Graphics and Visual Solutions | 671 | 342 | 1,328 | 1,091 | |||||||||||||
Total net revenue | $ | 1,461 | $ | 1,269 | $ | 3,710 | $ | 4,267 | |||||||||
Operating income (loss): | |||||||||||||||||
Computing Solutions | $ | 22 | $ | (114 | ) | $ | (15 | ) | $ | 92 | |||||||
Graphics and Visual Solutions | 79 | 18 | 95 | 83 | |||||||||||||
All Other | (6 | ) | (35 | ) | (112 | ) | (809 | ) | |||||||||
Total operating income (loss) | $ | 95 | $ | (131 | ) | $ | (32 | ) | $ | (634 | ) | ||||||
StockBased_Incentive_Compensat
Stock-Based Incentive Compensation Plans (Notes) | 9 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Share-based Compensation [Abstract] | |||||||||||||||||
Stock-Based Incentive Compensation Plans | Stock-Based Incentive Compensation Plans | ||||||||||||||||
The following table summarizes stock-based compensation expense related to employee stock options and restricted stock units, which is allocated in the Company’s condensed consolidated statements of operations: | |||||||||||||||||
Quarter Ended | Nine Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(In millions) | |||||||||||||||||
Cost of sales | $ | 1 | $ | 2 | $ | 4 | $ | 6 | |||||||||
Research and development | 12 | 15 | 35 | 40 | |||||||||||||
Marketing, general and administrative | 10 | 10 | 28 | 28 | |||||||||||||
Stock-based compensation expense, net of tax of $0 | $ | 23 | $ | 27 | $ | 67 | $ | 74 | |||||||||
For all periods presented, the Company did not realize any excess tax benefit related to stock-based compensation and therefore did not record any related financing cash flows. | |||||||||||||||||
Stock Options | |||||||||||||||||
The weighted average assumptions applied in the lattice-binomial model that the Company uses to value employee stock options are as follows: | |||||||||||||||||
Quarter Ended | Nine Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Expected volatility | 57.98 | % | 54.81 | % | 58.71 | % | 53.04 | % | |||||||||
Risk-free interest rate | 1.05 | % | 0.57 | % | 0.75 | % | 0.55 | % | |||||||||
Expected dividends | 0 | % | 0 | % | 0 | % | 0 | % | |||||||||
Expected life | 3.83 years | 3.79 years | 3.83 years | 3.79 years | |||||||||||||
For the quarters ended September 28, 2013 and September 29, 2012, the Company granted 4,647,000 and 2,186,000 employee stock options with weighted average grant date fair values per share of $1.62 and $1.67, respectively. For the nine months ended September 28, 2013 and September 29, 2012, the Company granted 5,974,000 and 9,232,000 employee stock options, respectively, with weighted average grant date fair values per share of $1.52 and $2.16, respectively. In addition, during the nine months ended September 29, 2012, the Company granted unvested employee stock options to purchase approximately 4,792,000 shares of the Company’s common stock upon the closing of the SeaMicro acquisition on March 23, 2012, with weighted average grant date fair values per share of $6.60. | |||||||||||||||||
Restricted Stock and Restricted Stock Units | |||||||||||||||||
For the quarters ended September 28, 2013 and September 29, 2012, the Company granted 8,702,000 and 673,000 restricted stock units, respectively, with weighted average grant date fair values per share of $3.89 and $4.17, respectively. For the nine months ended September 28, 2013 and September 29, 2012, the Company granted 25,299,000 and 14,709,000 restricted stock units, respectively, with weighted average grant date fair values per share of $3.78 and $5.92, respectively. In addition, during the nine months ended September 29, 2012, the Company granted approximately 322,000 shares of restricted stock upon the closing of the SeaMicro acquisition on March 23, 2012, with weighted average grant date fair values per share of $4.03. | |||||||||||||||||
Performance-based Restricted Stock Units | |||||||||||||||||
On July 22, 2013, the Company granted 2,450,000 performance-based restricted stock units (the pRSUs) to specified officers of the Company.. Each pRSU award reflects a target number of shares (Target Shares) that may be issued to the award recipient before adjusting based on the Company's financial performance and market conditions. The actual number of shares the recipient receives is determined at the end of the specified performance period based on the actual financial results achieved by the Company versus certain pre-established Company financial performance goals. Those goals are AMD’s non-GAAP operating income plus interest expense over an 18-month performance period and total shareholder return (TSR) relative to the S&P 500 IT Sector over the same 18-month performance period. Depending on the results achieved during this time, the actual number of shares that a grant recipient receives at the end of the period may range from 0% to 200% of the Target Shares granted, based on the calculations described below. | |||||||||||||||||
The non-GAAP operating income plus interest expense goal was established at the inception of the award. At the end of the performance period, the number of actual shares to be awarded varies between 0%, if performance is below the minimum level, and 160%, if performance is at or above the maximum level. For performance between the minimum level and the maximum level, a proportionate percentage between 40% and 160% is applied based on relative performance between the minimum and the maximum levels. | |||||||||||||||||
The number of shares to be awarded at the end of the 18 month period is adjusted by a TSR modifier. The TSR modifier varies between 75% for stock performance at or below the minimum level and 125% at or above the maximum level. For performance between the minimum level and the maximum level, a proportionate TSR modifier between 75% and 125% is applied based on relative performance between the minimum and the maximum levels. | |||||||||||||||||
The earned shares vest 50% on June 30, 2015, six months after the performance period, and the remaining 50% on June 30, 2016. Target Shares subject to pRSU awards do not have dividend equivalent rights and do not have the voting rights of common stock until earned and issued, following the end of the applicable requisite service period. The expense for these awards, net of estimated forfeitures, is recorded over the requisite service period based on the number of Target Shares that are expected to be earned and the achievement of the non-GAAP operating income plus interest expense goal during the performance period. The Company estimates the fair value of the pRSUs using a Monte Carlo simulation model, as the TSR modifier contains a market condition. The weighted-average grant date fair value per share of these pRSUs was $4.07. The following weighted-average assumptions, in addition to projections of market conditions, were used to measure the weighted-average fair value: | |||||||||||||||||
Expected volatility | 57.46 | % | |||||||||||||||
Risk-free interest rate | 0.2 | % | |||||||||||||||
Expected dividends | 0 | % | |||||||||||||||
Expected life | 1.44 years | ||||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Notes) | 9 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies | ||||||||||||||||
Warranties and Indemnities | |||||||||||||||||
The Company generally warrants that its products sold to its customers will conform to the Company’s approved specifications and be free from defects in material and workmanship under normal use and service for one year. Subject to certain exceptions, the Company also offers a three-year limited warranty to end users for only those microprocessor and AMD APU products that are commonly referred to as “processors in a box” and has also offered extended limited warranties to certain customers of “tray” microprocessor products and/or workstation graphics products who have written agreements with the Company and target their computer systems at the commercial and/or embedded markets. | |||||||||||||||||
Changes in the Company’s estimated liability for product warranty during the quarters and nine months ended September 28, 2013 and September 29, 2012 were as follows: | |||||||||||||||||
Quarter Ended | Nine Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(In millions) | |||||||||||||||||
Beginning balance | $ | 14 | $ | 18 | $ | 16 | $ | 20 | |||||||||
New warranties issued | 7 | 6 | 19 | 22 | |||||||||||||
Settlements | (6 | ) | (7 | ) | (17 | ) | (23 | ) | |||||||||
Changes in liability for pre-existing warranties, including expirations | — | — | (3 | ) | (2 | ) | |||||||||||
Ending balance | $ | 15 | $ | 17 | $ | 15 | $ | 17 | |||||||||
In addition to product warranties, the Company, from time to time in its normal course of business, indemnifies other parties, with whom it enters into contractual relationships, including customers, lessors and parties to other transactions with the Company, with respect to certain matters. In these limited matters, the Company has agreed to hold certain third parties harmless against specific types of claims or losses, such as those arising from a breach of representations or covenants, third-party claims that the Company’s products when used for their intended purpose(s) and under specific conditions infringe the intellectual property rights of a third party or other specified claims made against the indemnified party. It is not possible to determine the maximum potential amount of liability under these indemnification obligations due to the unique facts and circumstances that are likely to be involved in each particular claim and indemnification provision. Historically, payments made by the Company under these obligations have not been material. | |||||||||||||||||
Contingencies | |||||||||||||||||
The Company is a defendant or plaintiff in various actions that arose in the normal course of business. With respect to these matters, based on the management’s current knowledge, the Company believes that the amount or range of reasonably possible loss, if any, will not, either individually or in the aggregate, have a material adverse effect on the Company’s business, consolidated financial position, results of operations or cash flows. |
Hedging_Transactions_and_Deriv
Hedging Transactions and Derivative Financial Instruments (Notes) | 9 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||
Hedging Transactions and Derivative Financial Instruments | Hedging Transactions and Derivative Financial Instruments | ||||||||||||||||
The following table shows the amount of gain (loss) included in accumulated other comprehensive income (loss), the amount of gain (loss) reclassified from accumulated other comprehensive income (loss) and included in earnings related to the foreign currency forward contracts designated as cash flow hedges and the amount of gain (loss) included in other income (expense), net, related to contracts not designated as hedging instruments, which was allocated in the condensed consolidated statement of operations: | |||||||||||||||||
Quarter Ended | Nine Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(In millions) | |||||||||||||||||
Foreign Currency Forward Contracts | |||||||||||||||||
Contracts designated as cash flow hedging instruments | |||||||||||||||||
Other comprehensive income (loss) | $ | 3 | $ | 3 | $ | (1 | ) | $ | 4 | ||||||||
Research and development | (1 | ) | — | (1 | ) | (1 | ) | ||||||||||
Contracts not designated as hedging instruments | |||||||||||||||||
Other income (expense), net | $ | 1 | $ | 2 | $ | (1 | ) | $ | 2 | ||||||||
The following table shows the fair value amounts included in prepaid expenses and other current assets should the foreign currency forward contracts be in a gain position or included in accrued liabilities should these contracts be in a loss position. These amounts were recorded in the condensed consolidated balance sheet as follows: | |||||||||||||||||
September 28, | December 29, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
(In millions) | |||||||||||||||||
Foreign Currency Forward Contracts | |||||||||||||||||
Contracts designated as cash flow hedging instruments | $ | (1 | ) | $ | — | ||||||||||||
Contracts not designated as hedging instruments | $ | — | $ | — | |||||||||||||
For the foreign currency contracts designated as cash flow hedges, the ineffective portions of the hedging relationship and the amounts excluded from the assessment of hedge effectiveness were immaterial. | |||||||||||||||||
As of September 28, 2013 and December 29, 2012, the notional values of the Company’s outstanding foreign currency forward contracts were $128 million and $142 million, respectively. All the contracts mature within 12 months, and upon maturity, the amounts recorded in accumulated other comprehensive income (loss) are expected to be reclassified into earnings. The Company hedges its exposure to the variability in future cash flows for forecasted transactions over a maximum of 12 months. As of September 28, 2013, the Company’s outstanding contracts were in a $1 million net loss position. The Company is required to post collateral should the derivative contracts be in a net loss position exceeding certain thresholds. As of September 28, 2013, the Company was not required to post any collateral. |
Restructuring_Notes
Restructuring (Notes) | 9 Months Ended | |||||||||||
Sep. 28, 2013 | ||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||
Restructuring | Restructuring | |||||||||||
2012 Restructuring Plan | ||||||||||||
In the fourth quarter of 2012, the Company implemented a restructuring plan designed to improve the Company's cost structure and to strengthen its competitiveness in core growth areas. The plan primarily involved a workforce reduction of approximately 14% as well as asset impairments and facility consolidations. In the second quarter of 2013, the Company incurred costs of $10 million related to its exit from a portion of its facility in Sunnyvale, California, partially offset by the release of employee severance costs of $5 million. The plan was completed as of the end of the third quarter of 2013. | ||||||||||||
2011 Restructuring Plan | ||||||||||||
In the fourth quarter of 2011, the Company initiated a restructuring plan to strengthen its competitive positioning, implement a more competitive cost structure and conduct a workforce rebalancing to better address faster growing market segments. The plan included a reduction of the Company's global workforce by 13% and contract and program terminations. The plan was completed as of the end of the first quarter of 2012. | ||||||||||||
The following table provides a summary of the activity related to the 2012 and 2011 restructuring plans and the related liabilities recorded in “Other current liabilities” on the Company's consolidated balance sheets remaining as of September 28, 2013: | ||||||||||||
Severance and related benefits | Other exit related costs | Total | ||||||||||
(In millions) | ||||||||||||
Balance as of December 29, 2012 | $ | 41 | $ | 17 | $ | 58 | ||||||
Charges (reversals), net | (5 | ) | 10 | 5 | ||||||||
Cash payments | (33 | ) | (19 | ) | (52 | ) | ||||||
Balance as of September 28, 2013 | $ | 3 | $ | 8 | $ | 11 | ||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) (Notes) | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 28, 2013 | ||||||||||||||||||||||||||||||||
Statement of Comprehensive Income [Abstract] | ||||||||||||||||||||||||||||||||
Comprehensive Income (Loss) Note [Text Block] | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||||||||||
The table below summarizes the changes in accumulated other comprehensive income (loss) by component for the quarters and nine months ended September 28, 2013 and September 29, 2012. | ||||||||||||||||||||||||||||||||
Quarter Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
Unrealized gains (losses) on cash flow hedges | Total | Unrealized gains (losses) on cash flow hedges | Total | Unrealized gains (losses) on cash flow hedges | Total | Unrealized gains (losses) on cash flow hedges | Total | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Beginning balance | $ | (6 | ) | $ | (6 | ) | $ | (4 | ) | $ | (4 | ) | $ | (3 | ) | $ | (3 | ) | $ | (5 | ) | $ | (5 | ) | ||||||||
Unrealized gains (losses) arising during the period, net of tax effects | 3 | 3 | 3 | 3 | — | — | 3 | 3 | ||||||||||||||||||||||||
Reclassification adjustment for (gains) losses realized and included in net income (loss), net of tax effects | 1 | 1 | — | — | 1 | 1 | 1 | 1 | ||||||||||||||||||||||||
Total other comprehensive income | 4 | 4 | 3 | 3 | 1 | 1 | 4 | 4 | ||||||||||||||||||||||||
Ending balance | $ | (2 | ) | $ | (2 | ) | $ | (1 | ) | $ | (1 | ) | $ | (2 | ) | $ | (2 | ) | $ | (1 | ) | $ | (1 | ) |
Supplemental_Balance_Sheet_Inf1
Supplemental Balance Sheet Information (Tables) | 9 Months Ended | |||||||
Sep. 28, 2013 | ||||||||
Balance Sheet Related Disclosures [Abstract] | ||||||||
Accounts Receivable | ||||||||
September 28, | December 29, | |||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
Accounts receivable | $ | 874 | $ | 632 | ||||
Allowance for doubtful accounts | (1 | ) | (2 | ) | ||||
Total accounts receivable, net | $ | 873 | $ | 630 | ||||
Inventories | ||||||||
September 28, | December 29, | |||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
Raw materials | $ | 30 | $ | 29 | ||||
Work in process | 667 | 357 | ||||||
Finished goods | 225 | 176 | ||||||
Total inventories, net | $ | 922 | $ | 562 | ||||
Property, Plant and Equipment | ||||||||
September 28, | December 29, | |||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
Land and land improvements | $ | 7 | $ | 31 | ||||
Buildings and leasehold improvements | 238 | 591 | ||||||
Equipment | 1,505 | 1,585 | ||||||
Construction in progress | 16 | 11 | ||||||
1,766 | 2,218 | |||||||
Accumulated depreciation and amortization | (1,408 | ) | (1,560 | ) | ||||
Total property, plant and equipment, net | $ | 358 | $ | 658 | ||||
Accrued Liabilities | ||||||||
September 28, | December 29, | |||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
Accrued compensation and benefits | $ | 190 | $ | 158 | ||||
Marketing programs and advertising expenses | 158 | 160 | ||||||
Software technology and licenses payable | 21 | 18 | ||||||
Other | 159 | 153 | ||||||
Total accrued liabilities | $ | 528 | $ | 489 | ||||
Net_Income_Loss_Per_Share_Tabl
Net Income (Loss) Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||
Net Income (Loss) Per Share | |||||||||||||||||
Quarter Ended | Nine Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(In millions, except per share amounts) | |||||||||||||||||
Numerator – Net income (loss): | |||||||||||||||||
Numerator for basic and diluted net income (loss) per share | $ | 48 | $ | (157 | ) | $ | (172 | ) | $ | (710 | ) | ||||||
Denominator – Weighted average shares | |||||||||||||||||
Denominator for basic net income (loss) per share | 757 | 745 | 753 | 739 | |||||||||||||
Effect of potentially dilutive shares: | |||||||||||||||||
Employee stock options and restricted stock units | 7 | — | — | — | |||||||||||||
Denominator for diluted net income (loss) per share | 764 | 745 | 753 | 739 | |||||||||||||
Net income (loss) per share: | |||||||||||||||||
Basic | $ | 0.06 | $ | (0.21 | ) | $ | (0.23 | ) | $ | (0.96 | ) | ||||||
Diluted | $ | 0.06 | $ | (0.21 | ) | $ | (0.23 | ) | $ | (0.96 | ) | ||||||
Financial_Instruments_Tables
Financial Instruments (Tables) | 9 Months Ended | |||||||||||||||
Sep. 28, 2013 | ||||||||||||||||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||||||||||||||||
Summary of Available-for-sale Securities | ||||||||||||||||
September 28, | December 29, | |||||||||||||||
2013 | 2012 | |||||||||||||||
(In millions) | ||||||||||||||||
Fair Value | ||||||||||||||||
Classified as cash equivalents: | ||||||||||||||||
Money market funds | $ | — | $ | 402 | ||||||||||||
Commercial paper | 150 | 75 | ||||||||||||||
Time deposits | 25 | — | ||||||||||||||
Total classified as cash equivalents | $ | 175 | $ | 477 | ||||||||||||
Classified as current marketable securities: | ||||||||||||||||
Commercial paper | $ | 452 | $ | 324 | ||||||||||||
Time deposits | 50 | 100 | ||||||||||||||
Auction rate securities | 15 | 28 | ||||||||||||||
Marketable equity security | — | 1 | ||||||||||||||
Total classified as current marketable securities | $ | 517 | $ | 453 | ||||||||||||
Classified as long-term marketable securities: | ||||||||||||||||
Money market funds | $ | — | $ | 13 | ||||||||||||
Corporate bonds | 121 | 168 | ||||||||||||||
Total classified as long-term marketable securities | $ | 121 | $ | 181 | ||||||||||||
Classified as other assets: | ||||||||||||||||
Money market funds | $ | 18 | $ | 10 | ||||||||||||
Mutual funds | 13 | 14 | ||||||||||||||
Total classified as other assets | $ | 31 | $ | 24 | ||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | ||||||||||||||||
Fair value measurement at reporting dates using | ||||||||||||||||
Total | Quoted Prices | Significant | Significant | |||||||||||||
in Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
(In millions) | ||||||||||||||||
September 28, 2013 | ||||||||||||||||
Assets | ||||||||||||||||
Classified as cash equivalents: | ||||||||||||||||
Commercial paper | $ | 150 | $ | — | $ | 150 | $ | — | ||||||||
Time deposits | 25 | — | 25 | — | ||||||||||||
Total classified as cash equivalents | $ | 175 | $ | — | $ | 175 | $ | — | ||||||||
Classified as current marketable securities: | ||||||||||||||||
Commercial paper | $ | 452 | $ | — | $ | 452 | $ | — | ||||||||
Time deposits | 50 | — | 50 | — | ||||||||||||
Auction rate securities | 15 | — | — | 15 | ||||||||||||
Total classified as current marketable securities | $ | 517 | $ | — | $ | 502 | $ | 15 | ||||||||
Classified as long-term marketable securities: | ||||||||||||||||
Corporate bonds | $ | 121 | $ | — | $ | 121 | $ | — | ||||||||
Total classified as long-term marketable securities | $ | 121 | $ | — | $ | 121 | $ | — | ||||||||
Classified as other assets: | ||||||||||||||||
Money market funds | $ | 18 | $ | 18 | $ | — | $ | — | ||||||||
Mutual funds | 13 | 13 | — | — | ||||||||||||
Total classified as other assets | $ | 31 | $ | 31 | $ | — | $ | — | ||||||||
Total assets measured at fair value | $ | 844 | $ | 31 | $ | 798 | $ | 15 | ||||||||
Liabilities | ||||||||||||||||
Classified as accrued liabilities – Foreign currency derivative contracts | $ | (1 | ) | $ | — | $ | (1 | ) | $ | — | ||||||
Total liabilities measured at fair value | $ | (1 | ) | $ | — | $ | (1 | ) | $ | — | ||||||
December 29, 2012 | ||||||||||||||||
Assets | ||||||||||||||||
Classified as cash equivalents: | ||||||||||||||||
Money market funds | $ | 402 | $ | 402 | $ | — | $ | — | ||||||||
Commercial paper | 75 | — | 75 | — | ||||||||||||
Total classified as cash equivalents | $ | 477 | $ | 402 | $ | 75 | $ | — | ||||||||
Classified as current marketable securities: | ||||||||||||||||
Commercial paper | $ | 324 | $ | — | $ | 324 | $ | — | ||||||||
Time deposits | 100 | — | 100 | — | ||||||||||||
Auction rate securities | 28 | — | — | 28 | ||||||||||||
Marketable equity security | 1 | 1 | — | — | ||||||||||||
Total classified as current marketable securities | $ | 453 | $ | 1 | $ | 424 | $ | 28 | ||||||||
Classified as long-term marketable securities: | ||||||||||||||||
Money market funds | $ | 13 | $ | 13 | $ | — | $ | — | ||||||||
Corporate bonds | 168 | — | 168 | — | ||||||||||||
Total classified as long-term marketable securities | $ | 181 | $ | 13 | $ | 168 | $ | — | ||||||||
Classified as other assets: | ||||||||||||||||
Money market funds | $ | 10 | $ | 10 | $ | — | $ | — | ||||||||
Mutual funds | 14 | 14 | — | — | ||||||||||||
Total classified as other assets | $ | 24 | $ | 24 | $ | — | $ | — | ||||||||
Total assets measured at fair value | $ | 1,135 | $ | 440 | $ | 667 | $ | 28 | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | ||||||||||||||||
Quarter Ended | Nine Months Ended | |||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(In millions) | ||||||||||||||||
Beginning balance | $ | 15 | $ | 32 | $ | 28 | $ | 38 | ||||||||
Redemptions | — | — | (13 | ) | (6 | ) | ||||||||||
Ending balance | $ | 15 | $ | 32 | $ | 15 | $ | 32 | ||||||||
Fair Value Inputs, Assets, Quantitative Information | ||||||||||||||||
September 28, | December 29, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Discount rate for periodic interest payments | 0.63 | % | 0.84 | % | ||||||||||||
Discount rate for principal repayments | 1.26 | % | 1.31 | % | ||||||||||||
Liquidity discount | 0.9 | % | 0.9 | % | ||||||||||||
Credit discount | 2.00% to 12.00% | 2.00% to 12.00% | ||||||||||||||
Estimated period (years) | 17 to 20 years | 17 to 20 years | ||||||||||||||
Financial Instruments Not Recorded at Fair Value on a Recurring Basis | ||||||||||||||||
September 28, 2013 | December 29, 2012 | |||||||||||||||
Carrying | Estimated | Carrying | Estimated | |||||||||||||
Amount | Fair Value | Amount | Fair Value | |||||||||||||
(In millions) | ||||||||||||||||
Long-term debt (excluding capital leases) | $ | 2,031 | $ | 2,105 | $ | 2,019 | $ | 1,837 | ||||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
Schedule of Segment Reporting Information, by Segment | |||||||||||||||||
Quarter Ended | Nine Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(In millions) | |||||||||||||||||
Net revenue: | |||||||||||||||||
Computing Solutions | $ | 790 | $ | 927 | $ | 2,382 | $ | 3,176 | |||||||||
Graphics and Visual Solutions | 671 | 342 | 1,328 | 1,091 | |||||||||||||
Total net revenue | $ | 1,461 | $ | 1,269 | $ | 3,710 | $ | 4,267 | |||||||||
Operating income (loss): | |||||||||||||||||
Computing Solutions | $ | 22 | $ | (114 | ) | $ | (15 | ) | $ | 92 | |||||||
Graphics and Visual Solutions | 79 | 18 | 95 | 83 | |||||||||||||
All Other | (6 | ) | (35 | ) | (112 | ) | (809 | ) | |||||||||
Total operating income (loss) | $ | 95 | $ | (131 | ) | $ | (32 | ) | $ | (634 | ) | ||||||
StockBased_Incentive_Compensat1
Stock-Based Incentive Compensation Plans (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Share-based Compensation [Abstract] | |||||||||||||||||
Schedule of Stock-based Compensation Expense, Allocation of Recognized Period Costs | |||||||||||||||||
Quarter Ended | Nine Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(In millions) | |||||||||||||||||
Cost of sales | $ | 1 | $ | 2 | $ | 4 | $ | 6 | |||||||||
Research and development | 12 | 15 | 35 | 40 | |||||||||||||
Marketing, general and administrative | 10 | 10 | 28 | 28 | |||||||||||||
Stock-based compensation expense, net of tax of $0 | $ | 23 | $ | 27 | $ | 67 | $ | 74 | |||||||||
Weighted Average Valuation Assumptions for Stock Options | |||||||||||||||||
Quarter Ended | Nine Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Expected volatility | 57.98 | % | 54.81 | % | 58.71 | % | 53.04 | % | |||||||||
Risk-free interest rate | 1.05 | % | 0.57 | % | 0.75 | % | 0.55 | % | |||||||||
Expected dividends | 0 | % | 0 | % | 0 | % | 0 | % | |||||||||
Expected life | 3.83 years | 3.79 years | 3.83 years | 3.79 years | |||||||||||||
Expected volatility | 57.46 | % | |||||||||||||||
Risk-free interest rate | 0.2 | % | |||||||||||||||
Expected dividends | 0 | % | |||||||||||||||
Expected life | 1.44 years | ||||||||||||||||
Commitments_and_Contingencies_1
Commitments and Contingencies (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||
Changes in Estimated Liability for Product Warranty | |||||||||||||||||
Quarter Ended | Nine Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(In millions) | |||||||||||||||||
Beginning balance | $ | 14 | $ | 18 | $ | 16 | $ | 20 | |||||||||
New warranties issued | 7 | 6 | 19 | 22 | |||||||||||||
Settlements | (6 | ) | (7 | ) | (17 | ) | (23 | ) | |||||||||
Changes in liability for pre-existing warranties, including expirations | — | — | (3 | ) | (2 | ) | |||||||||||
Ending balance | $ | 15 | $ | 17 | $ | 15 | $ | 17 | |||||||||
Hedging_Transactions_and_Deriv1
Hedging Transactions and Derivative Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Operations | |||||||||||||||||
Quarter Ended | Nine Months Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(In millions) | |||||||||||||||||
Foreign Currency Forward Contracts | |||||||||||||||||
Contracts designated as cash flow hedging instruments | |||||||||||||||||
Other comprehensive income (loss) | $ | 3 | $ | 3 | $ | (1 | ) | $ | 4 | ||||||||
Research and development | (1 | ) | — | (1 | ) | (1 | ) | ||||||||||
Contracts not designated as hedging instruments | |||||||||||||||||
Other income (expense), net | $ | 1 | $ | 2 | $ | (1 | ) | $ | 2 | ||||||||
Schedule of Derivative Instruments in Balance Sheet | |||||||||||||||||
September 28, | December 29, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
(In millions) | |||||||||||||||||
Foreign Currency Forward Contracts | |||||||||||||||||
Contracts designated as cash flow hedging instruments | $ | (1 | ) | $ | — | ||||||||||||
Contracts not designated as hedging instruments | $ | — | $ | — | |||||||||||||
Restructuring_Tables
Restructuring (Tables) | 9 Months Ended | |||||||||||
Sep. 28, 2013 | ||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||
Schedule of Restructuring and Related Costs | ||||||||||||
Severance and related benefits | Other exit related costs | Total | ||||||||||
(In millions) | ||||||||||||
Balance as of December 29, 2012 | $ | 41 | $ | 17 | $ | 58 | ||||||
Charges (reversals), net | (5 | ) | 10 | 5 | ||||||||
Cash payments | (33 | ) | (19 | ) | (52 | ) | ||||||
Balance as of September 28, 2013 | $ | 3 | $ | 8 | $ | 11 | ||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 28, 2013 | ||||||||||||||||||||||||||||||||
Statement of Comprehensive Income [Abstract] | ||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||||||||||
Quarter Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
Unrealized gains (losses) on cash flow hedges | Total | Unrealized gains (losses) on cash flow hedges | Total | Unrealized gains (losses) on cash flow hedges | Total | Unrealized gains (losses) on cash flow hedges | Total | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Beginning balance | $ | (6 | ) | $ | (6 | ) | $ | (4 | ) | $ | (4 | ) | $ | (3 | ) | $ | (3 | ) | $ | (5 | ) | $ | (5 | ) | ||||||||
Unrealized gains (losses) arising during the period, net of tax effects | 3 | 3 | 3 | 3 | — | — | 3 | 3 | ||||||||||||||||||||||||
Reclassification adjustment for (gains) losses realized and included in net income (loss), net of tax effects | 1 | 1 | — | — | 1 | 1 | 1 | 1 | ||||||||||||||||||||||||
Total other comprehensive income | 4 | 4 | 3 | 3 | 1 | 1 | 4 | 4 | ||||||||||||||||||||||||
Ending balance | $ | (2 | ) | $ | (2 | ) | $ | (1 | ) | $ | (1 | ) | $ | (2 | ) | $ | (2 | ) | $ | (1 | ) | $ | (1 | ) |
GLOBALFOUNDRIES_Details
GLOBALFOUNDRIES (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 28, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 28, 2013 | Sep. 28, 2013 |
Second Amendment to the WSA | Second Amendment to the WSA | Third Amendment to the WSA | Third Amendment to the WSA | Third Amendment to the WSA | Wafer purchase under the WSA | Wafer purchase under the WSA | |||||
For 2013 | For 2014 | ||||||||||
Related Party Transaction [Line Items] | |||||||||||
Date of amendment to the WSA | 4-Mar-12 | 6-Dec-12 | |||||||||
Cash consideration for limited waiver of exclusivity to GF | $425 | $320 | |||||||||
Cash consideration for limited waiver of exclusivity to GF, paid | 175 | 40 | 80 | ||||||||
Lower of cost or market charge | 273 | ||||||||||
Consideration for limited waiver of exclusivity to GF | 703 | ||||||||||
Fair value of stock consideration for limited waiver of exclusivity to GF | 278 | ||||||||||
Unpaid charge related to the limited waiver of exclusivity from GF, promissory note | 200 | 200 | |||||||||
Purchases from GF related to wafer manufacturing and research and development activities | 221 | 263 | 746 | 1,098 | |||||||
Purchase obligations from GF | $1,150 | $250 |
Sale_and_Leaseback_Transaction1
Sale and Leaseback Transactions (Details) (Narrative) (USD $) | 9 Months Ended | 3 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Mar. 30, 2013 | Mar. 30, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Mar. 30, 2013 |
Property in Austin Texas | Property in Austin Texas | Property in Markham Canada | Property in Singapore | Sale Leaseback Transactions | Sale Leaseback Transactions | |||
Sale Leaseback Transaction [Line Items] | ||||||||
Proceeds from sale of property, plant, and equipment | $10 | $164 | $13 | $46 | ||||
Gain (loss) on sale of property, plant and equipment | -30 | 0 | 5 | -52 | 6 | 17 | 22 | -24 |
Sale Leaseback Transaction, Deferred Gain, Net | 14 | |||||||
Net book value, property, plant and equipment sold | $5 | $216 | $7 | $15 | ||||
Sale Leaseback Transaction, Lease Terms | The lease expires in March 2025 and provides for one 10-year optional renewal. | The lease was to expire in March 2014 but contained an early termination provision, which the Company exercised effective June 30, 2013. | The initial lease term expires in September 2023 and provides for options to extend the lease for 4 years, at the end of the initial lease term, and for an additional 3.5 years thereafter. |
Supplemental_Balance_Sheet_Inf2
Supplemental Balance Sheet Information (Details) (Accounts Receivable) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 |
In Millions, unless otherwise specified | ||
Accounts receivable, gross | $874 | $632 |
Allowance for doubtful accounts | -1 | -2 |
Total accounts receivable, net | $873 | $630 |
Supplemental_Balance_Sheet_Inf3
Supplemental Balance Sheet Information (Details) (Inventories) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 |
In Millions, unless otherwise specified | ||
Raw materials | $30 | $29 |
Work in process | 667 | 357 |
Finished goods | 225 | 176 |
Total inventories, net | $922 | $562 |
Supplemental_Balance_Sheet_Inf4
Supplemental Balance Sheet Information (Details) (Property, Plant and Equipment) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 |
In Millions, unless otherwise specified | ||
Land and land improvements | $7 | $31 |
Buildings and leasehold improvements | 238 | 591 |
Equipment | 1,505 | 1,585 |
Construction in progress | 16 | 11 |
Property, plant and equipment, gross | 1,766 | 2,218 |
Accumulated depreciation and amortization | 1,408 | 1,560 |
Total property, plant and equipment, net | $358 | $658 |
Supplemental_Balance_Sheet_Inf5
Supplemental Balance Sheet Information (Details) (Accrued Liabilities) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 |
In Millions, unless otherwise specified | ||
Accrued compensation and benefits | $190 | $158 |
Marketing programs and advertising expenses | 158 | 160 |
Software technology and licenses payable | 21 | 18 |
Other | 159 | 153 |
Total accrued liabilities | $528 | $489 |
Net_Income_Loss_Per_Share_Deta
Net Income (Loss) Per Share (Details) (Components of Basic and Diluted Income (Loss) Per Share) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Numerator | ||||
Net income (loss) | $48 | ($157) | ($172) | ($710) |
Denominator | ||||
Weighted-average shares outstanding, basic | 757 | 745 | 753 | 739 |
Employee stock options and restricted stock units | 7 | 0 | 0 | 0 |
Weighted-average shares outstanding, diluted | 764 | 745 | 753 | 739 |
Basic net income (loss) per share | $0.06 | ($0.21) | ($0.23) | ($0.96) |
Diluted net income (loss) per share | $0.06 | ($0.21) | ($0.23) | ($0.96) |
5.75% Notes | ||||
Denominator | ||||
Anti-dilutive shares | 12 | 20 | ||
Stock Options and Restricted Stock Units | ||||
Denominator | ||||
Anti-dilutive shares | 53 | 71 | 61 | 62 |
Financial_Instruments_Details_
Financial Instruments (Details) (Narrative) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Dec. 29, 2012 | Sep. 28, 2013 | Dec. 29, 2012 |
Money Market Funds | Money Market Funds | Mutual Funds | Mutual Funds | |||
Financial Instruments [Line Items] | ||||||
Available-for-sale investments used as collateral | $18 | $10 | ||||
Restricted Investments | 13 | 14 | ||||
Realized gain (loss) on available-for-sale securities | 0 | 0 | ||||
Sales of available-for-sale securities | 0 | 14 | ||||
Auction rate securities, carrying value | 15 | 15 | ||||
Auction rate securities, par value | $22 | $22 |
Financial_Instruments_Details_1
Financial Instruments (Details) (Schedule of Available-for-Sale Securities) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 |
In Millions, unless otherwise specified | ||
Available-for-sale Securities [Line Items] | ||
Cash equivalents, at fair value | $175 | $477 |
Current marketable securities, at fair value | 517 | 453 |
Noncurrent marketable securities, at fair value | 121 | 181 |
Other assets, at fair value | 31 | 24 |
Money Market Funds | ||
Available-for-sale Securities [Line Items] | ||
Cash equivalents, at fair value | 0 | 402 |
Noncurrent marketable securities, at fair value | 0 | 13 |
Other assets, at fair value | 18 | 10 |
Commercial Paper | ||
Available-for-sale Securities [Line Items] | ||
Cash equivalents, at fair value | 150 | 75 |
Current marketable securities, at fair value | 452 | 324 |
Time Deposits | ||
Available-for-sale Securities [Line Items] | ||
Cash equivalents, at fair value | 25 | 0 |
Current marketable securities, at fair value | 50 | 100 |
Auction Rate Securities | ||
Available-for-sale Securities [Line Items] | ||
Current marketable securities, at fair value | 15 | 28 |
Marketable Equity Securities | ||
Available-for-sale Securities [Line Items] | ||
Current marketable securities, at fair value | 0 | 1 |
Corporate Bonds | ||
Available-for-sale Securities [Line Items] | ||
Noncurrent marketable securities, at fair value | 121 | 168 |
Mutual Funds | ||
Available-for-sale Securities [Line Items] | ||
Other assets, at fair value | $13 | $14 |
Financial_Instruments_Details_2
Financial Instruments (Details) (Fair Value Measurements) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 |
In Millions, unless otherwise specified | ||
Financial Instruments, At Fair Value [Line Items] | ||
Cash equivalents, at fair value | $175 | $477 |
Current marketable securities, at fair value | 517 | 453 |
Noncurrent marketable securities, at fair value | 121 | 181 |
Other assets, at fair value | 31 | 24 |
Total assets, at fair alue | 844 | 1,135 |
Foreign currency derivative contracts, liability, at fair value | -1 | |
Total liabilities, at fair value | -1 | |
Money Market Funds | ||
Financial Instruments, At Fair Value [Line Items] | ||
Cash equivalents, at fair value | 0 | 402 |
Noncurrent marketable securities, at fair value | 0 | 13 |
Other assets, at fair value | 18 | 10 |
Commercial Paper | ||
Financial Instruments, At Fair Value [Line Items] | ||
Cash equivalents, at fair value | 150 | 75 |
Current marketable securities, at fair value | 452 | 324 |
Time Deposits | ||
Financial Instruments, At Fair Value [Line Items] | ||
Cash equivalents, at fair value | 25 | 0 |
Current marketable securities, at fair value | 50 | 100 |
Auction Rate Securities | ||
Financial Instruments, At Fair Value [Line Items] | ||
Current marketable securities, at fair value | 15 | 28 |
Marketable Equity Securities | ||
Financial Instruments, At Fair Value [Line Items] | ||
Current marketable securities, at fair value | 0 | 1 |
Corporate Bonds | ||
Financial Instruments, At Fair Value [Line Items] | ||
Noncurrent marketable securities, at fair value | 121 | 168 |
Mutual Funds | ||
Financial Instruments, At Fair Value [Line Items] | ||
Other assets, at fair value | 13 | 14 |
Quoted Prices In Active Markets For Identical Assets (Level 1) | ||
Financial Instruments, At Fair Value [Line Items] | ||
Cash equivalents, at fair value | 0 | 402 |
Current marketable securities, at fair value | 0 | 1 |
Noncurrent marketable securities, at fair value | 0 | 13 |
Other assets, at fair value | 31 | 24 |
Total assets, at fair alue | 31 | 440 |
Foreign currency derivative contracts, liability, at fair value | 0 | |
Total liabilities, at fair value | 0 | |
Quoted Prices In Active Markets For Identical Assets (Level 1) | Money Market Funds | ||
Financial Instruments, At Fair Value [Line Items] | ||
Cash equivalents, at fair value | 402 | |
Noncurrent marketable securities, at fair value | 13 | |
Other assets, at fair value | 18 | 10 |
Quoted Prices In Active Markets For Identical Assets (Level 1) | Commercial Paper | ||
Financial Instruments, At Fair Value [Line Items] | ||
Cash equivalents, at fair value | 0 | 0 |
Current marketable securities, at fair value | 0 | 0 |
Quoted Prices In Active Markets For Identical Assets (Level 1) | Time Deposits | ||
Financial Instruments, At Fair Value [Line Items] | ||
Cash equivalents, at fair value | 0 | |
Current marketable securities, at fair value | 0 | 0 |
Quoted Prices In Active Markets For Identical Assets (Level 1) | Auction Rate Securities | ||
Financial Instruments, At Fair Value [Line Items] | ||
Current marketable securities, at fair value | 0 | 0 |
Quoted Prices In Active Markets For Identical Assets (Level 1) | Marketable Equity Securities | ||
Financial Instruments, At Fair Value [Line Items] | ||
Current marketable securities, at fair value | 1 | |
Quoted Prices In Active Markets For Identical Assets (Level 1) | Corporate Bonds | ||
Financial Instruments, At Fair Value [Line Items] | ||
Noncurrent marketable securities, at fair value | 0 | 0 |
Quoted Prices In Active Markets For Identical Assets (Level 1) | Mutual Funds | ||
Financial Instruments, At Fair Value [Line Items] | ||
Other assets, at fair value | 13 | 14 |
Significant Other Observable Inputs (Level 2) | ||
Financial Instruments, At Fair Value [Line Items] | ||
Cash equivalents, at fair value | 175 | 75 |
Current marketable securities, at fair value | 502 | 424 |
Noncurrent marketable securities, at fair value | 121 | 168 |
Other assets, at fair value | 0 | 0 |
Total assets, at fair alue | 798 | 667 |
Foreign currency derivative contracts, liability, at fair value | -1 | |
Total liabilities, at fair value | -1 | |
Significant Other Observable Inputs (Level 2) | Money Market Funds | ||
Financial Instruments, At Fair Value [Line Items] | ||
Cash equivalents, at fair value | 0 | |
Noncurrent marketable securities, at fair value | 0 | |
Other assets, at fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Commercial Paper | ||
Financial Instruments, At Fair Value [Line Items] | ||
Cash equivalents, at fair value | 150 | 75 |
Current marketable securities, at fair value | 452 | 324 |
Significant Other Observable Inputs (Level 2) | Time Deposits | ||
Financial Instruments, At Fair Value [Line Items] | ||
Cash equivalents, at fair value | 25 | |
Current marketable securities, at fair value | 50 | 100 |
Significant Other Observable Inputs (Level 2) | Auction Rate Securities | ||
Financial Instruments, At Fair Value [Line Items] | ||
Current marketable securities, at fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Marketable Equity Securities | ||
Financial Instruments, At Fair Value [Line Items] | ||
Current marketable securities, at fair value | 0 | |
Significant Other Observable Inputs (Level 2) | Corporate Bonds | ||
Financial Instruments, At Fair Value [Line Items] | ||
Noncurrent marketable securities, at fair value | 121 | 168 |
Significant Other Observable Inputs (Level 2) | Mutual Funds | ||
Financial Instruments, At Fair Value [Line Items] | ||
Other assets, at fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Financial Instruments, At Fair Value [Line Items] | ||
Cash equivalents, at fair value | 0 | 0 |
Current marketable securities, at fair value | 15 | 28 |
Noncurrent marketable securities, at fair value | 0 | 0 |
Other assets, at fair value | 0 | 0 |
Total assets, at fair alue | 15 | 28 |
Foreign currency derivative contracts, liability, at fair value | 0 | |
Total liabilities, at fair value | 0 | |
Significant Unobservable Inputs (Level 3) | Money Market Funds | ||
Financial Instruments, At Fair Value [Line Items] | ||
Cash equivalents, at fair value | 0 | |
Noncurrent marketable securities, at fair value | 0 | |
Other assets, at fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Commercial Paper | ||
Financial Instruments, At Fair Value [Line Items] | ||
Cash equivalents, at fair value | 0 | 0 |
Current marketable securities, at fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Time Deposits | ||
Financial Instruments, At Fair Value [Line Items] | ||
Cash equivalents, at fair value | 0 | |
Current marketable securities, at fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Auction Rate Securities | ||
Financial Instruments, At Fair Value [Line Items] | ||
Current marketable securities, at fair value | 15 | 28 |
Significant Unobservable Inputs (Level 3) | Marketable Equity Securities | ||
Financial Instruments, At Fair Value [Line Items] | ||
Current marketable securities, at fair value | 0 | |
Significant Unobservable Inputs (Level 3) | Corporate Bonds | ||
Financial Instruments, At Fair Value [Line Items] | ||
Noncurrent marketable securities, at fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Mutual Funds | ||
Financial Instruments, At Fair Value [Line Items] | ||
Other assets, at fair value | $0 | $0 |
Financial_Instruments_Details_3
Financial Instruments (Details) (Roll-forward of Level 3 Financial Investments) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Mar. 30, 2013 | Mar. 31, 2012 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Beginning Balance | $28 | $38 | $15 | $32 | ||
Redemption | 0 | 0 | -13 | -6 | ||
Ending Balance | $15 | $32 | $15 | $32 | $15 | $32 |
Financial_Instruments_Details_4
Financial Instruments (Details) (Quantitative Information about Level 3 Fair Value Measurements) | Sep. 28, 2013 | Dec. 29, 2012 |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount rate for periodic interest payment | 0.63% | 0.84% |
Discount rate for principle repayment | 1.26% | 1.31% |
Liquidity discount | 0.90% | 0.90% |
Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Credit discounts | 2.00% | 2.00% |
Estimated period (years) | 17 years | 17 years |
Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Credit discounts | 12.00% | 12.00% |
Estimated period (years) | 20 years | 20 years |
Financial_Instruments_Details_5
Financial Instruments (Details) (Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments not Recorded at Fair Value) (Details) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 |
In Millions, unless otherwise specified | ||
Financial Instrument [Line Items] | ||
Long-term debt (excluding capital leases), at carrying amount | $2,031 | $2,019 |
Long-term debt (excluding capital leases), at estimated fair value | $2,105 | $1,837 |
Income_Taxes_Details_Narrative
Income Taxes (Details) (Narratives) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Income Taxes [Line Items] | ||||
Provision (benefit) for income taxes | $3 | $0 | $8 | ($38) |
Increase in gross unrecognized tax benefits | 2 | |||
Gross unrecognized tax benefits | 56 | 56 | ||
Unrecognized tax benefits, liabilities | 3 | 3 | ||
Foreign Taxes in Profitable Locations | ||||
Income Taxes [Line Items] | ||||
Provision (benefit) for income taxes | 2 | 2 | 7 | 10 |
Other Comprehensive Income (Loss) | ||||
Income Taxes [Line Items] | ||||
Provision (benefit) for income taxes | 1 | -1 | 3 | -2 |
Tax Benefits for Canadian Coop Tax Credits | ||||
Income Taxes [Line Items] | ||||
Provision (benefit) for income taxes | -1 | -2 | -1 | |
Tax Benefit Relating to SeaMicro Acquisition | ||||
Income Taxes [Line Items] | ||||
Provision (benefit) for income taxes | -36 | |||
Tax Holidays in Foreign Jurisdictions | ||||
Income Taxes [Line Items] | ||||
Provision (benefit) for income taxes | ($9) |
Segment_Reporting_Details_Summ
Segment Reporting (Details) (Summary of Net Revenue and Operating Income (Loss) by Segment) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Segment Reporting Information [Line Items] | ||||
Net revenue | $1,461 | $1,269 | $3,710 | $4,267 |
Operating income (loss) | 95 | -131 | -32 | -634 |
Computing Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue | 790 | 927 | 2,382 | 3,176 |
Operating income (loss) | 22 | -114 | -15 | 92 |
Graphics and Visual Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue | 671 | 342 | 1,328 | 1,091 |
Operating income (loss) | 79 | 18 | 95 | 83 |
All Other | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | ($6) | ($35) | ($112) | ($809) |
StockBased_Incentive_Compensat2
Stock-Based Incentive Compensation Plans (Details) (Narrative) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | |
Employee stock options granted | 4,647,000 | 2,186,000 | 5,974,000 | 9,232,000 |
Stock options weighted average estimated grant date fair values | $1.62 | $1.67 | $1.52 | $2.16 |
Restricted stock units granted | 8,702,000 | 673,000 | 25,299,000 | 14,709,000 |
Restricted stock units weighted average grant date fair values | $3.89 | $4.17 | $3.78 | $5.92 |
Unvested, Issued upon SeaMicro Acquisition | ||||
Employee stock options granted | 4,792,000 | |||
Stock options weighted average estimated grant date fair values | $6.60 | |||
Restricted stock units granted | 322,000 | |||
Restricted stock units weighted average grant date fair values | $4.03 | |||
Performance-based RSUs | ||||
Restricted stock units granted | 2,450,000 | |||
Restricted stock units weighted average grant date fair values | $4.07 |
StockBased_Incentive_Compensat3
Stock-Based Incentive Compensation Plans (Details) (Share-based Compensation, Allocation of Recognized Period Costs) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense, net of tax of $0 | $23 | $27 | $67 | $74 |
Cost of Sales | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense, net of tax of $0 | 1 | 2 | 4 | 6 |
Research and Development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense, net of tax of $0 | 12 | 15 | 35 | 40 |
Marketing, General and Administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense, net of tax of $0 | $10 | $10 | $28 | $28 |
StockBased_Incentive_Compensat4
Stock-Based Incentive Compensation Plans (Details) (Weighted-average Valuation Assumptions) | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected volatility | 57.98% | 54.81% | 58.71% | 53.04% |
Risk-free interest rate | 1.05% | 0.57% | 0.75% | 0.55% |
Expected dividends | 0.00% | 0.00% | 0.00% | 0.00% |
Expected life (in years) | 3 years 10 months 0 days | 3 years 9 months 15 days | 3 years 10 months 0 days | 3 years 9 months 15 days |
Performance-based RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected volatility | 57.46% | |||
Risk-free interest rate | 0.20% | |||
Expected dividends | 0.00% | |||
Expected life (in years) | 1 year 5 months 10 days |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details) (Schedule of Changes in Product Warranty Liability) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Changes in Product Warranty Liability [Roll Forward] | ||||
Beginning balance | $14 | $18 | $16 | $20 |
New warranties issued | 7 | 6 | 19 | 22 |
Settlements | -6 | -7 | -17 | -23 |
Changes in liability for pre-existing warranties, including expirations | 0 | 0 | -3 | -2 |
Ending balance | $15 | $17 | $15 | $17 |
Details_Gain_Loss_from_Foreign
(Details) (Gain (Loss) from Foreign Currency Forward Contracts) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Foreign Currency Forward Contracts, Gain (Loss) [Line Items] | ||||
Research and Development Expense | ($288) | ($328) | ($908) | ($1,041) |
Contracts designated as cash flow hedging instruments | ||||
Foreign Currency Forward Contracts, Gain (Loss) [Line Items] | ||||
Other comprehensive income (loss) | 3 | 3 | -1 | 4 |
Research and Development Expense | -1 | 0 | -1 | -1 |
Contracts not designated as hedging instruments | ||||
Foreign Currency Forward Contracts, Gain (Loss) [Line Items] | ||||
Other income (expense), net | $1 | $2 | ($1) | $2 |
Details_Summary_of_Foreign_Cur
(Details) (Summary of Foreign Currency Forward Contracts) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 |
In Millions, unless otherwise specified | ||
Foreign Currency Forward Contracts, Fair Value [Line Items] | ||
Contracts designated as cash flow hedging instruments | ($1) | $0 |
Contracts not designated as hedging instruments | 0 | 0 |
Foreign currency derivative contracts, net | -1 | |
Notional amount of foreign currency fair value hedge derivatives | $128 | $142 |
Restructuring_Details
Restructuring (Details) (USD $) | 3 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Jun. 29, 2013 | Sep. 28, 2013 |
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | $58 | |
Charges (reversals), net | -5 | |
Cash Payments | -52 | |
Restructuring reserve, ending balance | 11 | |
Severance and related benefits | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 41 | |
Charges (reversals), net | 5 | 5 |
Cash Payments | -33 | |
Restructuring reserve, ending balance | 3 | |
Other exit related costs | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 17 | |
Charges (reversals), net | -10 | -10 |
Cash Payments | -19 | |
Restructuring reserve, ending balance | $8 | |
2011 Restructuring Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Reduction of the Company's global workforce | 13.00% | |
2012 Restructuring Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Reduction of the Company's global workforce | 14.00% |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (Details) (Schedule of Accumulated Other Comprehensive Income (Loss)) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Unrealized gains (losses) on cash flow hedges: | ||||
Beginning balance | ($6) | ($4) | ($3) | ($5) |
Unrealized gains (losses) arising during period, net of tax | 3 | 3 | 0 | 3 |
Reclassification adjustment for (gains) losses realized and included in net income (loss), net of tax | 1 | 0 | 1 | 1 |
Other comprehensive income (loss), cash flow hedges, net of tax | 4 | 3 | 1 | 4 |
Ending balance | -2 | -1 | -2 | -1 |
Total: | ||||
Beginning balance | -6 | -4 | -3 | -5 |
Other comprehensive income (loss), unrealized gain (loss), net of tax | 3 | 3 | 0 | 3 |
Other comprehensive income (loss), reclassification adjustment, net of tax | 1 | 0 | 1 | 1 |
Total other comprehensive income (loss) | 4 | 3 | 1 | 4 |
Ending balance | ($2) | ($1) | ($2) | ($1) |