Document_and_Entity_Informatio
Document and Entity Information Document (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 28, 2013 | Feb. 14, 2014 | Jun. 29, 2013 |
Document Information [Line Items] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 28-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'AMD | ' | ' |
Entity Registrant Name | 'ADVANCED MICRO DEVICES INC | ' | ' |
Entity Central Index Key | '0000002488 | ' | ' |
Current Fiscal Year End Date | '--12-28 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 726,115,663 | ' |
Entity Public Float | ' | ' | $2.50 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Net revenue | $5,299 | $5,422 | $6,568 |
Cost of sales | 3,321 | 4,187 | 3,628 |
Gross margin | 1,978 | 1,235 | 2,940 |
Research and development | 1,201 | 1,354 | 1,453 |
Marketing, general and administrative | 674 | 823 | 992 |
Amortization of acquired intangible assets | 18 | 14 | 29 |
Restructuring charges (reversals), net | 30 | 100 | 98 |
Legal settlements, net | -48 | 0 | 0 |
Operating income (loss) | 103 | -1,056 | 368 |
Interest income | 5 | 8 | 10 |
Interest expense | -177 | -175 | -180 |
Other income (expense), net | -5 | 6 | -199 |
Loss before dilution gain in investees and income taxes | -74 | -1,217 | -1 |
Provision (benefit) for income taxes | 9 | -34 | -4 |
Dilution gain in investee | 0 | 0 | 492 |
Income (loss) from continuing operations | -83 | -1,183 | 495 |
Loss from discontinued operations, net of tax | 0 | 0 | -4 |
Net income (loss) | ($83) | ($1,183) | $491 |
Basic | ' | ' | ' |
Continuing operations | ($0.11) | ($1.60) | $0.68 |
Discontinued operations | $0 | $0 | ($0.01) |
Basic net income (loss) per share | ($0.11) | ($1.60) | $0.68 |
Diluted | ' | ' | ' |
Continuing operations | ($0.11) | ($1.60) | $0.67 |
Discontinued operations | $0 | $0 | ($0.01) |
Diluted net income (loss) per share | ($0.11) | ($1.60) | $0.66 |
Shares used in per share calculation | ' | ' | ' |
Basic | 754 | 741 | 727 |
Diluted | 754 | 741 | 742 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Net income (loss) | ($83) | ($1,183) | $491 |
Unrealized gains (losses) on available-for-sale securities: | ' | ' | ' |
Unrealized gains (losses) arising during period, net of tax effect of zero | -1 | 1 | 5 |
Reclassification adjustment for (gains) losses realized and included in net income (loss), net of tax effect of zero | 2 | 0 | -4 |
Total change in unrealized gains (losses) on available-for-sale securities, net of tax | 1 | 1 | 1 |
Unrealized gains (losses) on cash flow hedges: | ' | ' | ' |
Unrealized gains (losses) arising during period, net of tax effect of $0, $1 and $0 | -6 | 1 | -5 |
Reclassification adjustment for (gains) losses realized and included in net income (loss), net of tax effect of $(3), $0 and $0 | 6 | 0 | -3 |
Total change in unrealized gains (losses) on cash flow hedges, net of tax | 0 | 1 | -8 |
Cumulative translation adjustments related to GLOBALFOUNDRIES | 0 | 0 | 1 |
Total other comprehensive income (loss) | 1 | 2 | -6 |
Total comprehensive income (loss) | ($82) | ($1,181) | $485 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) (Parentheticals) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Tax effect related to available-for-sale securities: | ' | ' | ' |
Unrealized gains (losses) arising during period | $0 | $0 | $0 |
Reclassification adjustment for (gains) losses included in net income (loss) | 0 | 0 | 0 |
Tax effect related to cash flow hedges: | ' | ' | ' |
Unrealized gains (losses) arising during period | 0 | 1 | 0 |
Reclassification adjustment for (gains) losses included in net income (loss) | ($3) | $0 | $0 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $869 | $549 |
Marketable securities | 228 | 453 |
Accounts receivable, net | 832 | 630 |
Inventories, net | 884 | 562 |
Prepaid expenses and other current assets | 71 | 71 |
Total current assets | 2,884 | 2,265 |
Long-term marketable securities | 90 | 181 |
Property, plant and equipment, net | 346 | 658 |
Acquisition related intangible assets, net | 78 | 96 |
Goodwill | 553 | 553 |
Other assets | 386 | 247 |
Total assets | 4,337 | 4,000 |
Current liabilities: | ' | ' |
Short-term debt | 60 | 5 |
Accounts payable | 519 | 278 |
Payable to GLOBALFOUNDRIES | 364 | 454 |
Accrued and other current liabilities | 530 | 552 |
Deferred income on shipments to distributors | 145 | 108 |
Total current liabilities | 1,618 | 1,397 |
Long-term debt | 1,998 | 2,037 |
Other long-term liabilities | 177 | 28 |
Stockholders’ equity: | ' | ' |
Common stock, par value $0.01; 1,500 shares authorized on December 28, 2013 and December 29, 2012; shares issued: 735 shares on December 28, 2013 and 722 shares on December 29, 2012; shares outstanding: 725 shares on December 28, 2013 and 713 shares on December 29, 2012 | 7 | 7 |
Additional paid-in capital | 6,894 | 6,803 |
Treasury stock, at cost (10 shares on December 28, 2013 and 9 shares on December 29, 2012) | -112 | -109 |
Accumulated deficit | -6,243 | -6,160 |
Accumulated other comprehensive loss | -2 | -3 |
Total stockholders’ equity | 544 | 538 |
Total liabilities and stockholders’ equity | $4,337 | $4,000 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (Parentheticals) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Millions, except Per Share data, unless otherwise specified | ||
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 1,500 | 1,500 |
Common stock, shares issued | 735 | 722 |
Common stock, shares outstanding | 725 | 713 |
Treasury stock, shares | 10 | 9 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders’ Equity (USD $) | Total | Number of Shares | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) |
In Millions | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |
Balance at Dec. 25, 2010 | $1,013 | ' | $7 | $6,575 | ($102) | ($5,468) | $1 |
Balance, shares at Dec. 25, 2010 | ' | 683 | ' | ' | ' | ' | ' |
Net income (loss) | 491 | ' | ' | ' | ' | 491 | ' |
Other comprehensive income (loss) | -6 | ' | ' | ' | ' | ' | -6 |
Common stock issued under stock-based compensation plans | 13 | ' | ' | 18 | -5 | ' | ' |
Common stock issued under stock-based compensation plans, shares | ' | 15 | ' | ' | ' | ' | ' |
Stock-based compensation | 90 | ' | ' | 90 | ' | ' | ' |
Adjustment to equity component of the 6.00% Notes resulting from debt buyback | -9 | ' | ' | -9 | ' | ' | ' |
Other | -2 | ' | ' | -2 | ' | ' | ' |
Balance at Dec. 31, 2011 | 1,590 | ' | 7 | 6,672 | -107 | -4,977 | -5 |
Balance, shares at Dec. 31, 2011 | ' | 698 | ' | ' | ' | ' | ' |
Net income (loss) | -1,183 | ' | ' | ' | ' | -1,183 | ' |
Other comprehensive income (loss) | 2 | ' | ' | ' | ' | ' | 2 |
Common stock issued under stock-based compensation plans | 13 | ' | ' | 15 | -2 | ' | ' |
Common stock issued under stock-based compensation plans, shares | ' | 15 | ' | ' | ' | ' | ' |
Stock-based compensation | 97 | ' | ' | 97 | ' | ' | ' |
Assumption of employee stock plan awards in connection with the acquisition of SeaMicro, Inc. | 19 | ' | ' | 19 | ' | ' | ' |
Balance at Dec. 29, 2012 | 538 | ' | 7 | 6,803 | -109 | -6,160 | -3 |
Balance, shares at Dec. 29, 2012 | ' | 713 | ' | ' | ' | ' | ' |
Net income (loss) | -83 | ' | ' | ' | ' | -83 | ' |
Other comprehensive income (loss) | 1 | ' | ' | ' | ' | ' | 1 |
Common stock issued under stock-based compensation plans | 0 | ' | ' | 3 | -3 | ' | ' |
Common stock issued under stock-based compensation plans, shares | ' | 12 | ' | ' | ' | ' | ' |
Stock-based compensation | 91 | ' | ' | 91 | ' | ' | ' |
Adjustment to equity component of the 6.00% Notes resulting from debt buyback | -3 | ' | ' | -3 | ' | ' | ' |
Balance at Dec. 28, 2013 | $544 | ' | $7 | $6,894 | ($112) | ($6,243) | ($2) |
Balance, shares at Dec. 28, 2013 | ' | 725 | ' | ' | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net income (loss) | ($83) | ($1,183) | $491 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' | ' |
Non-cash portion of the limited waiver of exclusivity from GLOBALFOUNDRIES | 0 | 278 | 0 |
Dilution gain in investee | 0 | 0 | -492 |
Impairment related to the GLOBALFOUNDRIES investment | 0 | 0 | 209 |
Depreciation and amortization | 236 | 260 | 317 |
Net (gain) loss on disposal of property, plant and equipment | 31 | 1 | -5 |
Deferred income taxes | 1 | -40 | -6 |
Stock-based compensation expense | 91 | 97 | 90 |
Non-cash interest expense | 25 | 23 | 21 |
Other | -1 | 6 | 9 |
Changes in operating assets and liabilities: | ' | ' | ' |
Accounts receivable | -200 | 290 | -347 |
Inventories | -322 | -83 | 157 |
Prepaid expenses and other current assets | -11 | -20 | 115 |
Other assets | -92 | -12 | -1 |
Accounts payables, accrued liabilities and other | 266 | -232 | -148 |
Payable to GLOBALFOUNDRIES | -89 | 277 | -28 |
Net cash provided by (used in) operating activities | -148 | -338 | 382 |
Cash flows from investing activities: | ' | ' | ' |
Acquisition of SeaMicro, Inc., net of cash acquired | 0 | -281 | 0 |
Purchases of available-for-sale securities | -1,043 | -944 | -1,586 |
Purchases of property, plant and equipment | -84 | -133 | -250 |
Proceeds from sale and maturity of available-for-sale securities | 1,344 | 1,348 | 1,726 |
Proceeds from sale of property, plant and equipment | 238 | 0 | 16 |
Other | 0 | -9 | -19 |
Net cash provided by (used in) investing activities | 455 | -19 | -113 |
Cash flows from financing activities: | ' | ' | ' |
Proceeds from borrowings of Secured Revolving Line of Credit, net | 55 | 0 | 0 |
Proceeds from borrowings, net of issuance cost | 0 | 491 | 170 |
Proceeds from issuance of common stock | 3 | 14 | 18 |
Net proceeds from grants and allowances | 11 | 23 | 20 |
Repayments of long-term debt and capital lease obligations | -55 | -489 | -209 |
Other | -1 | -2 | -5 |
Net cash provided by (used in) financing activities | 13 | 37 | -6 |
Net increase (decrease) in cash and cash equivalents | 320 | -320 | 263 |
Cash and cash equivalents at beginning of year | 549 | 869 | 606 |
Cash and cash equivalents at end of year | 869 | 549 | 869 |
Supplemental disclosures of cash flow information: | ' | ' | ' |
Cash paid during the year for interest | 152 | 142 | 152 |
Cash paid during the year for income taxes | $9 | $9 | $9 |
Nature_of_Operations
Nature of Operations | 12 Months Ended | |
Dec. 28, 2013 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |
Nature of Operations | ' | |
Nature of Operations | ||
Advanced Micro Devices, Inc. is a global semiconductor company with facilities throughout the world. References herein to AMD or the Company mean Advanced Micro Devices, Inc. and its consolidated subsidiaries. The Company provides: | ||
(i) | x86 microprocessors, as standalone devices or as incorporated as an accelerated processing unit (APU), chipsets, embedded processors and dense servers; and | |
(ii) | graphics processing units (GPUs), including professional graphics, semi-custom System-on-Chip (SOC) products, development service and technology for game consoles. |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | ||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||||||||
2: Summary of Significant Accounting Policies | |||||||||||||||||
Fiscal Year. The Company uses a 52 or 53 week fiscal year ending on the last Saturday in December. Fiscal 2013, 2012 and 2011 ended December 28, 2013, December 29, 2012 and December 31, 2011, respectively, consisted of 52, 52 and 53 weeks, respectively. | |||||||||||||||||
Principles of Consolidation. The consolidated financial statements include the Company’s accounts and those of its wholly-owned subsidiaries. Upon consolidation, all significant intercompany accounts and transactions are eliminated. | |||||||||||||||||
Use of Estimates. The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of commitments and contingencies at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results are likely to differ from those estimates, and such differences may be material to the financial statements. Areas where management uses subjective judgment include, but are not limited to, revenue allowances, inventory valuation, valuation and impairment of goodwill, valuation of investments in marketable securities, deferred income taxes and restructuring charges. | |||||||||||||||||
Revenue Recognition. The Company recognizes revenue from products sold directly to customers, including original equipment manufacturers (OEMs), when persuasive evidence of an arrangement exists, the price is fixed or determinable, delivery has occurred and collectability is reasonably assured. Estimates of product returns, allowances and future price reductions, based on actual historical experience and other known or anticipated trends and factors, are recorded at the time revenue is recognized. The Company sells to distributors under terms allowing the majority of distributors certain rights of return and price protection on unsold merchandise held by them. The distributor agreements, which may be cancelled by either party upon specified notice, generally contain a provision for the return of those of the Company’s products that the Company has removed from its price book and that are not more than 12 months older than the manufacturing code date. In addition, some agreements with distributors may contain standard stock rotation provisions permitting limited levels of product returns. Therefore, the Company is unable to estimate the product returns and pricing when the product is sold to the distributors. Accordingly, the Company defers the gross margin resulting from the deferral of both revenue and related product costs from sales to distributors with agreements that have the aforementioned terms until the merchandise is resold by the distributors and reports such deferred amounts as “Deferred income on shipments to distributors” on its consolidated balance sheet. Products are sold to distributors at standard published prices that are contained in price books that are broadly provided to the Company’s various distributors. Distributors are then required to pay for these products within the Company’s standard commercial terms, which are typically net 30 days. The Company records allowances for price protection given to distributors and customer rebates in the period of distributor re-sale. The Company determines these allowances based on specific contractual terms with its distributors. Price reductions generally do not result in sales prices that are less than the Company’s product cost. Deferred income on shipments to distributors is revalued at the end of each period based on the change in inventory units at distributors, latest published prices and latest product costs. | |||||||||||||||||
The Company records estimated reductions to revenue under distributor and customer incentive programs, including certain cooperative advertising and marketing promotions and volume based incentives and special pricing arrangements, at the time the related revenues are recognized. For transactions where the Company reimburses a customer for a portion of the customer’s cost to perform specific product advertising or marketing and promotional activities, such amounts are recorded as a reduction of revenue unless they qualify for expense recognition. Shipping and handling costs associated with product sales are included in cost of sales. | |||||||||||||||||
Deferred revenue and related product costs were as follows: | |||||||||||||||||
December 28, | December 29, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
(In millions) | |||||||||||||||||
Deferred revenue | $ | 253 | $ | 189 | |||||||||||||
Deferred cost of sales | (108 | ) | (81 | ) | |||||||||||||
Deferred income on shipments to distributors | $ | 145 | $ | 108 | |||||||||||||
Inventories. Inventories are stated at standard cost adjusted to approximate the lower of actual cost (first-in, first-out method) or market. Inventories on hand in excess of forecasted demand are not valued. Obsolete inventories are written off. | |||||||||||||||||
Goodwill. Goodwill represents the excess of the purchase price over the fair value of net tangible and identifiable intangible assets acquired. Goodwill is not amortized, but rather is tested for impairment at least annually or more frequently if indicators of impairment present. The Company performs its annual goodwill impairment analysis as of the first day of the fourth quarter of each year. The Company evaluates whether goodwill has been impaired at the reporting unit level by first determining whether the estimated fair value of the reporting unit is less than its carrying value and, if so, by determining whether the implied fair value of goodwill within the reporting unit is less than the carrying value. The implied fair value of goodwill is determined through the application of one or more valuation models common to the Company's industry, including the income, market and cost approaches. | |||||||||||||||||
Commitments and Contingencies. From time to time the Company is a defendant or plaintiff in various legal actions that arise in the normal course of business. The Company is also a party to environmental matters, including local, regional, state and federal government clean-up activities at or near locations where the Company currently or has in the past conducted business. The Company is required to assess the likelihood of any adverse judgments or outcomes to these matters as well as potential ranges of reasonably possible losses. A determination of the amount of reserves required for these commitments and contingencies, if any, that would be charged to earnings, includes assessing the probability of adverse outcomes and estimating the amount of potential losses. The required reserves, if any, may change in the future due to new developments in each matter or changes in circumstances such as a change in settlement strategy. Changes in required reserves could increase or decrease the Company’s earnings in the period the changes are made. (See Notes 16 and 17). | |||||||||||||||||
Restructuring Charges. Restructuring charges are primarily comprised of severance costs, contract and program termination costs and costs of facility consolidation and closure. Restructuring charges are recorded upon approval of a formal management plan and are included in the operating results of the period in which such plan is approved and the expense becomes estimable. To estimate restructuring charges, management utilizes assumptions of the number of employees that would be involuntarily terminated and of future costs to operate and eventually vacate duplicate facilities. Severance and other employee separation costs are accrued when it is probable that benefits will be paid and the amount is reasonably estimable. The rates used in determining severance accruals are based on the Company's policies and practices and negotiated settlements. | |||||||||||||||||
Cash Equivalents. Cash equivalents consist of financial instruments that are readily convertible into cash and have original maturities of three months or less at the time of purchase. | |||||||||||||||||
Investments in Certain Debt and Equity Securities. The Company classifies its investments in debt and marketable equity securities at the date of acquisition as available-for-sale. Available-for-sale securities are reported at fair value with the related unrealized gains and losses included, net of tax, in other comprehensive income (loss), a component of stockholders’ equity. Realized gains and losses and declines in the value of available-for-sale securities determined to be other than temporary are included in other income (expense), net. The cost of securities sold is determined based on the specific identification method. | |||||||||||||||||
The Company classifies investments in debt securities with maturities of more than three months at the time of purchase as marketable securities on its consolidated balance sheet. Classification of these securities as current is based on the Company's intent and belief in its ability to sell these securities and use the proceeds from sale in operations within 12 months. | |||||||||||||||||
Derivative Financial Instruments. The Company maintains a foreign currency hedging strategy, which uses derivative financial instruments to mitigate the risks associated with changes in foreign currency exchange rates. This strategy takes into consideration all of the Company’s consolidated exposures. The Company does not use derivative financial instruments for trading or speculative purposes. | |||||||||||||||||
In applying its strategy, the Company used foreign currency forward contracts to hedge certain forecasted expenses denominated in foreign currencies, primarily the Canadian dollar. The Company designated these contracts as cash flow hedges of forecasted expenses, to the extent eligible under the accounting rules, and evaluates hedge effectiveness prospectively and retrospectively. As such, the effective portion of the gain or loss on these contracts is reported as a component of accumulated other comprehensive income (loss) and reclassified to earnings in the same line item as the associated forecasted transaction and in the same period during which the hedged transaction affects earnings. Any ineffective portion is immediately recorded in earnings. | |||||||||||||||||
The Company also uses, from time to time, foreign currency forward contracts to economically hedge recognized foreign currency exposures on the balance sheets of various subsidiaries, primarily those denominated in Canadian dollars. The Company does not designate these forward contracts as hedging instruments. Accordingly, the gain or loss associated with these contracts is immediately recorded in earnings. | |||||||||||||||||
Property, Plant and Equipment. Property, plant and equipment are stated at cost. Depreciation and amortization are provided on a straight-line basis over the estimated useful lives of the assets for financial reporting purposes. Estimated useful lives for financial reporting purposes are as follows: equipment, two to six years; buildings and building improvements, up to 39 years; and leasehold improvements, measured by the shorter of the remaining terms of the leases or the estimated useful economic lives of the improvements. | |||||||||||||||||
Product Warranties. The Company generally warrants that its products sold to its customers will conform to the Company’s approved specifications and be free from defects in material and workmanship under normal use and service for one year. Subject to certain exceptions, the Company also offers a three-year limited warranty to end users for only those CPU and AMD APU A-Series products that are commonly referred to as “processors in a box” for PC workstation products. The Company 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. | |||||||||||||||||
The Company accrues warranty costs at the time of sale of warranted products. | |||||||||||||||||
Foreign Currency Translation/Transactions. The functional currency of all of the Company’s foreign subsidiaries is the U.S. dollar. Assets and liabilities denominated in non-U.S. dollars have been remeasured into U.S. dollars at current exchange rates for monetary assets and liabilities and historical exchange rates for non-monetary assets and liabilities. Non-U.S. dollar denominated transactions have been remeasured at average exchange rates in effect during each period, except for those cost of sales and expense transactions related to non-monetary balance sheet amounts, which have been remeasured at historical exchange rates. The gains or losses from foreign currency remeasurement are included in earnings. | |||||||||||||||||
Foreign Subsidies. The Company received investment grants in connection with the construction and operation of certain facilities in Asia. Generally, such grants are subject to forfeiture in declining amounts over the life of the agreement if the Company does not maintain certain levels of employment or meet other conditions specified in the relevant grant documents. Accordingly, amounts granted are initially recorded as a receivable until cash proceeds are received. In the period the grant receivable is recorded, a current and long-term liability is also recorded which is subsequently amortized as a reduction to cost of sales. | |||||||||||||||||
The Company also received an investment grant relating to certain research and development projects. These research and development funds are recorded as a reduction of research and development expenses when all conditions and requirements set forth in the underlying grant agreement are met. | |||||||||||||||||
Marketing, Communications and Advertising Expenses. Marketing, communications and advertising expenses for 2013, 2012 and 2011 were approximately $210 million, $287 million and $397 million, respectively. Cooperative advertising funding obligations under customer incentive programs are accrued and the costs are recorded upon agreement with customers and vendor partners. Cooperative advertising expenses are recorded as marketing, general and administrative expense to the extent the cash paid does not exceed the estimated fair value of the advertising benefit received. Any excess of cash paid over the estimated fair value of the advertising benefit received is recorded as a reduction of revenue. | |||||||||||||||||
Net Income (Loss) Per Share. Basic net income (loss) per share is computed based on the weighted-average number of shares outstanding and 35 million shares issuable upon exercise of the warrants issued by the Company to West Coast Hitech L.P. (WCH), in connection with the initial GLOBALFOUNDRIES, Inc. (GF) transaction in 2009. The warrants became exercisable on July 24, 2009 at per share price of $0.01. | |||||||||||||||||
Diluted net income 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, 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: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
(In millions, except per share amounts) | |||||||||||||||||
Numerator—Net income (loss): | |||||||||||||||||
Numerator for basic and diluted income (loss) from continuing operations | $ | (83 | ) | $ | (1,183 | ) | $ | 495 | |||||||||
Numerator for basic and diluted income (loss) from discontinued operations | — | — | (4 | ) | |||||||||||||
Numerator for basic and diluted net income (loss) | $ | (83 | ) | $ | (1,183 | ) | $ | 491 | |||||||||
Denominator—Weighted-average shares: | |||||||||||||||||
Denominator for basic net income (loss) per share | 754 | 741 | 727 | ||||||||||||||
Effect of potentially dilutive shares: | |||||||||||||||||
Employee stock options, restricted stock and restricted stock units | — | — | 15 | ||||||||||||||
Denominator for diluted net income (loss) per share | 754 | 741 | 742 | ||||||||||||||
Net income (loss) per share: | |||||||||||||||||
Basic | |||||||||||||||||
Continuing operations | $ | (0.11 | ) | $ | (1.60 | ) | $ | 0.68 | |||||||||
Discontinued operations | — | — | (0.01 | ) | |||||||||||||
Basic net income (loss) per share | $ | (0.11 | ) | $ | (1.60 | ) | $ | 0.68 | |||||||||
Diluted | |||||||||||||||||
Continuing operations | $ | (0.11 | ) | $ | (1.60 | ) | $ | 0.67 | |||||||||
Discontinued operations | — | — | (0.01 | ) | |||||||||||||
Diluted net income (loss) per share | $ | (0.11 | ) | $ | (1.60 | ) | $ | 0.66 | |||||||||
Potential shares from outstanding stock options, restricted stock and restricted stock units totaling approximately 59 million, 45 million and 33 million for 2013, 2012 and 2011, respectively, were not included in the net income (loss) per share calculations as their inclusion would have been anti-dilutive. | |||||||||||||||||
Potential shares issuable under the Company’s 5.75% Convertible Senior Notes due 2012 (5.75% Notes) totaling 15 million and 24 million for 2012 and 2011, respectively, were not included in the net income (loss) per share calculations as their inclusion would have been anti-dilutive. The 5.75% Notes were fully repaid on August 15, 2012. | |||||||||||||||||
Accumulated Other Comprehensive Loss. Unrealized holding gains or losses on the Company’s available-for-sale securities, unrealized holding gains and losses on derivative financial instruments qualifying as cash flow hedges and changes in minimum pension liabilities are included in other comprehensive loss. | |||||||||||||||||
The table below summarizes the changes in accumulated other comprehensive loss by component for the years ended December 28, 2013 and December 29, 2012: | |||||||||||||||||
December 28, | December 29, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Unrealized gains (losses) on available-for-sale securities | Unrealized gains (losses) on cash flow hedges | Total | Unrealized gains (losses) on available-for-sale securities | Unrealized gains (losses) on cash flow hedges | Total | ||||||||||||
(In millions) | |||||||||||||||||
Beginning balance | — | (3 | ) | (3 | ) | (1 | ) | (4 | ) | (5 | ) | ||||||
Unrealized gains (losses) arising during the period, net of tax effects | (1 | ) | (6 | ) | (7 | ) | 1 | 1 | 2 | ||||||||
Reclassification adjustment for losses realized and included in net loss, net of tax effects | 2 | 6 | 8 | — | — | — | |||||||||||
Total other comprehensive income | 1 | — | 1 | 1 | 1 | 2 | |||||||||||
Ending balance | 1 | (3 | ) | (2 | ) | — | (3 | ) | (3 | ) | |||||||
Stock-Based Compensation. The Company estimates stock-based compensation cost for stock options at the grant date based on the option’s fair-value as calculated by the lattice-binomial option-pricing model. For restricted stock and restricted stock units, fair value is based on the closing price of the Company’s common stock on the grant date. The Company estimates the grant-date fair value of stock options, restricted stock and restricted stock units that involve a market condition using a Monte Carlo simulation model. The expense is recognized using the single option method which is ratable on a straight-line basis over the requisite service period. | |||||||||||||||||
The application of the lattice-binomial option-pricing model requires the use of extensive actual employee exercise behavior data and the use of a number of complex assumptions including expected volatility of the Company’s common stock, risk-free interest rate and expected dividends. Significant changes in any of these assumptions could materially affect the fair value of stock options granted in the future. | |||||||||||||||||
Forfeiture rates are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates in order to derive the Company’s best estimate of awards ultimately expected to vest. |
GLOBALFOUNDRIES
GLOBALFOUNDRIES | 12 Months Ended |
Dec. 28, 2013 | |
Related Party Transactions [Abstract] | ' |
GLOBALFOUNDRIES | ' |
GLOBALFOUNDRIES | |
Formation and Accounting | |
On March 2, 2009, the Company consummated the transactions contemplated by the Master Transaction Agreement among the Company, Advanced Technology Investment Company LLC (ATIC) and West Coast Hitech L.P. (WCH), pursuant to which the Company formed GLOBALFOUNDRIES, Inc. (GF). In connection with the consummation of the transactions contemplated by the Master Transaction Agreement, the Company, ATIC and GF entered into a Wafer Supply Agreement (the WSA), a Funding Agreement (the Funding Agreement) and a Shareholders' Agreement (the Shareholders' Agreement) on March 2, 2009. | |
At GF’s formation on March 2, 2009 and through December 26, 2009, GF was deemed a variable-interest entity and the Company was deemed to be GF's primary beneficiary. Accordingly, the Company consolidated GF under applicable accounting rules. As a result of certain GF governance changes, the Company deconsolidated GF and accounted for its GF ownership under the equity method of accounting as of December 27, 2009. Following the deconsolidation, GF became the Company’s related party. | |
In the first quarter of 2011, as a result of a contribution to GF by an affiliate of ATIC and certain GF governance changes noted above, the Company’s ownership in GF was diluted and the Company concluded that it no longer had the ability to exercise significant influence over GF. Accordingly, the Company changed the accounting for the investment in GF from the equity method to the cost method of accounting and recognized a dilution gain in investee of approximately $492 million. In the fourth quarter of 2011, the Company identified indicators of impairment in GF that were deemed other than temporary. The Company performed a valuation analysis and recorded a non-cash impairment charge of $209 million. The carrying value of the Company’s remaining investment in GF after the impairment charge was $278 million as of December 31, 2011. | |
On March 4, 2012, as partial consideration for certain rights received under a second amendment to the WSA, the Company transferred to GF all of the remaining capital stock of GF that the Company owned. In addition, as of March 4, 2012, the Funding Agreement was terminated and the Company was no longer party to the Shareholders’ Agreement. As a result of these transactions, the Company no longer owned any GF capital stock as of March 4, 2012. | |
GF continues to be a related party of the Company because Mubadala Development Company PJSC’s (Mubadala) and ATIC are affiliated with WCH, the Company's largest stockholder. WCH and ATIC are wholly-owned subsidiaries of Mubadala. | |
Wafer Supply Agreement | |
The WSA governs the terms by which the Company purchase products manufactured by GF. Pursuant to the WSA, the Company is required to purchase all microprocessor and APU product requirements from GF, with limited exceptions. If the Company acquires a third party business that manufactures microprocessor and APU products, the Company will have up to two years to transition the manufacture of such microprocessor and APU products to GF. | |
The WSA terminates no later than March 2, 2024. GF has agreed to use commercially reasonable efforts to assist the Company to transition the supply of products to another provider and to continue to fulfill purchase orders for up to two years following the termination or expiration of the WSA. During the transition period, pricing for microprocessor and APU products will remain as set forth in the WSA, but the Company’s purchase commitments to GF will no longer apply. | |
On April 2, 2011, the Company entered into a first amendment to the WSA. The primary effect of the first amendment was to change the pricing methodology applicable to wafers delivered in 2011 for the Company’s microprocessors and APU products. The first amendment also modified the existing commitments regarding the production of certain GPU and chipset products at GF. | |
On March 4, 2012, the Company entered into a second amendment to the WSA. The primary effect of the second amendment was to modify 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 2012. Under the terms of the second amendment to the WSA, GF granted the Company rights to contract with another wafer foundry supplier with respect to specified 28nm products for a specified period of time (the limited waiver of exclusivity). In consideration for the limited waiver of exclusivity, the Company recorded a charge of $703 million in the first quarter of 2012, consisting of a $425 million cash payment and a $278 million non-cash charge representing the transfer to GF of the Company’s remaining investment in GF at fair value. | |
On December 6, 2012, the Company entered into a third amendment to the WSA. Pursuant to the third amendment, the Company modified its wafer purchase commitments for the fourth quarter of 2012 made pursuant to the second amendment to the WSA. In addition, the Company agreed to certain pricing and other terms of the WSA applicable to wafers for its microprocessor and APU products to be delivered by GF to the Company from the fourth quarter of 2012 through December 31, 2013. Pursuant to the third amendment, 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. As a result, the Company recorded a lower of cost or market charge of $273 million for the write-down of inventory to its market value in the fourth quarter of 2012. The cash impact of this $320 million fee was paid over several quarters, with $80 million paid on December 28, 2012, $40 million paid on April 1, 2013 and $200 million paid on December 31, 2013. | |
The expenses related to GF's wafer manufacturing were $962 million, $1.2 billion and $904 million in 2013, 2012 and 2011, respectively. The expenses related to GF's research and development activities were $16 million, $49 million and $79 million for 2013, 2012 and 2011, respectively. |
Acquisition
Acquisition | 12 Months Ended | |||||
Dec. 28, 2013 | ||||||
Business Combinations [Abstract] | ' | |||||
Acquisition | ' | |||||
Acquisition | ||||||
On March 23, 2012, the Company acquired SeaMicro, Inc. (SeaMicro), a privately held company that produced energy-efficient, high-bandwidth microservers. At the time of the acquisition of SeaMicro, AMD planned to accelerate its strategy to deliver disruptive server technology to its OEM customers serving Cloud-centric data centers. | ||||||
The total consideration paid to acquire SeaMicro was $312 million, not including cash acquired of $19 million. In addition, the Company incurred $6 million in transaction costs, which were included in marketing, general and administrative expenses on the Company's consolidated statement of operations. The Company paid $293 million in cash to the holders of all outstanding shares of SeaMicro capital stock. As part of the acquisition, the Company assumed all outstanding vested and unvested SeaMicro stock options and unvested restricted stock held by continuing SeaMicro employees as of March 23, 2012. The assumed options were exchanged for approximately 1,652,000 vested and 4,792,000 unvested AMD stock options. The assumed restricted stock was exchanged for approximately 322,000 the Company restricted shares. The stock options and restricted shares continue to have the same terms and conditions as under SeaMicro's option plan. The fair value attributable to pre-combination employee service as of the March 23, 2012 closing for the stock options and restricted shares assumed, which was part of the consideration paid to acquire SeaMicro, was $19 million. The fair value for the stock options assumed was determined using a binomial option-pricing valuation model. | ||||||
The total cash consideration of $293 million included $29 million deposited into an escrow account as security for any breaches by SeaMicro of representations, warranties and covenants under the acquisition agreement. The escrow funds, less amounts of any valid indemnification claims, were disbursed by the escrow agent to the former stockholders of SeaMicro in March 2013. | ||||||
The acquisition was accounted for using the purchase method of accounting in accordance with Accounting Standard Codification (ASC) 805, Business Combinations. Accordingly, the total consideration was assigned to the tangible and identified intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. Fair values were determined by the Company's management based on information available at the date of acquisition. After the closing of the acquisition, the results of operations of SeaMicro are included in the Computing Solutions segment in the Company's consolidated financial statements. | ||||||
The assets acquired and liabilities assumed based on the estimated fair value of SeaMicro were as follows: | ||||||
March 23, | Estimated useful lives | |||||
2012 | ||||||
(In millions) | ||||||
Purchase consideration | ||||||
Cash | $ | 293 | ||||
Vested portion of the replacement grants | 19 | |||||
Total purchase consideration | $ | 312 | ||||
Tangible assets acquired | $ | 24 | ||||
Identified intangible assets acquired | ||||||
Developed technology | 86 | 8 years | ||||
In-process research and development | 11 | |||||
Customer relationships | 4 | 4 years | ||||
Trade name | 1 | 4 years | ||||
Total assets acquired | 126 | |||||
Liabilities assumed | 8 | |||||
Deferred tax liabilities | 36 | |||||
Total liabilities assumed | 44 | |||||
Goodwill | $ | 230 | ||||
The developed technology of SeaMicro relates to SeaMicro's SM10000 server offerings, which is built around a parallel array of independent ultra-low power processors, and it serves to integrate computation, switching, server management and load balancing. In addition to developed technology, SeaMicro had in-process research and development projects, which were incomplete at the time of the acquisition. The value of developed technology and in-process research and development was determined based on the present value of estimated expected cash flows attributable to the technology. The customer relationships related to the ability to sell existing, in-process and future versions of the technology to SeaMicro's existing customers and were valued based on incremental cash flows generated from the existing customer base. The trade name related to the SeaMicro brand names. The goodwill was primarily attributed to premiums paid for synergies between the Company and SeaMicro and the assembled workforce and is not deductible for tax purposes. The acquired developed technology, customer relationships and trade name are amortized on a straight-line basis over their estimated useful lives. The acquired in-process research and development and goodwill associated with the acquisition are categorized as indefinite-lived intangible assets and subject to impairment review. Capitalized acquired in-process research and development costs will remain capitalized until such time as the projects are complete, at which point they will be amortized, or they will be written off when it is probable the projects will not be completed. As of December 28, 2013, approximately $5 million of in-process research and development projects were completed and classified as developed technology, and the Company started to amortize these projects on a straight-line basis over their estimated useful lives. |
Sale_and_Leaseback_Transaction
Sale and Leaseback Transactions (Notes) | 12 Months Ended |
Dec. 28, 2013 | |
Leases [Abstract] | ' |
Sale Leaseback Transaction Disclosure [Text Block] | ' |
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, which resulted in a $17 million gain in the third quarter of 2013 and a $14 million deferred gain as of September 28, 2013 that will be amortized over the initial operating lease term. The initial operating lease term expires in September 2023 and provides for options to extend the lease for 4 years, at the end of the initial operating lease term, and for an additional 3.5 years thereafter. | |
In September 2013, the Company also sold an office building in Austin, Texas. The Company received net cash proceeds of $10 million in connection with the sale and recorded a $5 million gain in the third quarter of 2013. | |
In March 2013, the Company sold and leased back land and office buildings in Austin, Texas. The Company received net cash proceeds of $164 million in connection with the sale and recorded a $52 million charge in the first quarter of 2013. The operating lease expires in March 2025 and provides for one 10-year optional renewal. | |
In March 2013, the Company also sold an office building in Markham, Ontario, Canada, and leased back a portion of the original space through June 2013. The Company received net cash proceeds of $13 million in connection with the sale and recorded a $6 million gain in the first quarter of 2013. | |
The net charge of $24 million in 2013 related to the real estate transactions described above are recorded as "Restructuring and other special charges, net" on the consolidated statements of operations. |
Supplemental_Balance_Sheet_Inf
Supplemental Balance Sheet Information | 12 Months Ended | |||||||
Dec. 28, 2013 | ||||||||
Balance Sheet Related Disclosures [Abstract] | ' | |||||||
Supplemental Balance Sheet Disclosures | ' | |||||||
Supplemental Balance Sheet Information | ||||||||
Accounts receivable | ||||||||
December 28, | December 29, | |||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
Accounts receivable | $ | 832 | $ | 632 | ||||
Allowance for doubtful accounts | — | (2 | ) | |||||
Total accounts receivable, net | $ | 832 | $ | 630 | ||||
Inventories | ||||||||
December 28, | December 29, | |||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
Raw materials | $ | 30 | $ | 29 | ||||
Work in process | 727 | 357 | ||||||
Finished goods | 127 | 176 | ||||||
Total inventories, net | $ | 884 | $ | 562 | ||||
Property, plant and equipment | ||||||||
December 28, | December 29, | |||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
Land and land improvements | $ | 3 | $ | 31 | ||||
Buildings and leasehold improvements | 246 | 591 | ||||||
Equipment | 1,466 | 1,585 | ||||||
Construction in progress | 18 | 11 | ||||||
1,733 | 2,218 | |||||||
Accumulated depreciation and amortization | (1,387 | ) | (1,560 | ) | ||||
Total property, plant and equipment, net | $ | 346 | $ | 658 | ||||
Depreciation expense for 2013, 2012 and 2011 was $139 million, $179 million and $217 million, respectively. | ||||||||
Other assets | ||||||||
December 28, | December 29, | |||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
Software technology and licenses | $ | 280 | $ | 155 | ||||
Other | 106 | 92 | ||||||
Total other assets | $ | 386 | $ | 247 | ||||
Accrued and other current liabilities | ||||||||
December 28, | December 29, | |||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
Accrued compensation and benefits | $ | 186 | $ | 158 | ||||
Marketing programs and advertising expenses | 150 | 160 | ||||||
Software technology and licenses payable | 27 | 18 | ||||||
Other accrued and current liabilities | 167 | 216 | ||||||
Total accrued and other current liabilities | $ | 530 | $ | 552 | ||||
Goodwill_and_Acquired_Intangib
Goodwill and Acquired Intangible Assets | 12 Months Ended | |||||||||||||||||||
Dec. 28, 2013 | ||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||
Goodwill and Acquired Intangible Assets | ' | |||||||||||||||||||
Goodwill and Acquired Intangible Assets | ||||||||||||||||||||
Goodwill | ||||||||||||||||||||
The carrying amounts of goodwill as of December 28, 2013 and December 29, 2012 were as follows: | ||||||||||||||||||||
Computing | Graphics and Visual Solutions | All Other | Total | |||||||||||||||||
Solutions | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
Initial goodwill due to ATI acquisition | $ | 161 | $ | 1,288 | $ | 745 | $ | 2,194 | ||||||||||||
Initial goodwill due to SeaMicro acquisition | 230 | — | — | 230 | ||||||||||||||||
391 | 1,288 | 745 | 2,424 | |||||||||||||||||
Accumulated impairment losses | (161 | ) | (965 | ) | (745 | ) | (1,871 | ) | ||||||||||||
Balance as of December 29, 2012 | 230 | 323 | — | 553 | ||||||||||||||||
Goodwill adjustments | — | — | — | — | ||||||||||||||||
Impairment charges | — | — | — | — | ||||||||||||||||
Balance as of December 28, 2013 | $ | 230 | $ | 323 | $ | — | $ | 553 | ||||||||||||
In the fourth quarters of 2013, 2012 and 2011, the Company conducted its annual impairment tests of goodwill. Based on the results of the Company’s analysis of goodwill, each reporting unit’s fair value exceeded its carrying value, indicating that there was no goodwill impairment in any of the periods. | ||||||||||||||||||||
Acquisition-related intangible assets | ||||||||||||||||||||
The balances of acquisition-related intangible assets as of December 28, 2013 and December 29, 2012 were as follows: | ||||||||||||||||||||
Developed technology | In-process research and development | Customer | Trademark | Total | ||||||||||||||||
relationships | and trade | |||||||||||||||||||
name | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
Intangible assets, net as of December 31, 2011 | $ | — | $ | — | $ | — | $ | 8 | $ | 8 | ||||||||||
Addition due to SeaMicro acquisition | 86 | 11 | 4 | 1 | 102 | |||||||||||||||
Completion of in-process research and development | 5 | (5 | ) | — | — | — | ||||||||||||||
Amortization expense | (9 | ) | — | (1 | ) | (4 | ) | (14 | ) | |||||||||||
Intangible assets, net as of December 29, 2012 | 82 | 6 | 3 | 5 | 96 | |||||||||||||||
Amortization expense | (13 | ) | — | (1 | ) | (4 | ) | (18 | ) | |||||||||||
Intangible assets, net as of December 28, 2013 | $ | 69 | $ | 6 | $ | 2 | $ | 1 | $ | 78 | ||||||||||
Weighted-average amortization period as of December 28, 2013 | 6.05 years | N/A | 2.25 years | 2.25 years | 4.94 years | |||||||||||||||
Accumulated amortization of acquired intangible assets as of December 28, 2013 was approximately $572 million. | ||||||||||||||||||||
As of December 28, 2013, the Company's future amortization expenses related to acquisition-related intangible assets were as follows: | ||||||||||||||||||||
Year | (In millions) | |||||||||||||||||||
2014 | $ | 13 | ||||||||||||||||||
2015 | 13 | |||||||||||||||||||
2016 | 11 | |||||||||||||||||||
2017 | 11 | |||||||||||||||||||
2018 | 11 | |||||||||||||||||||
2019 and thereafter | 13 | |||||||||||||||||||
Total intangible assets subject to amortization | 72 | |||||||||||||||||||
In-process research and development | 6 | |||||||||||||||||||
Total intangible assets, net | $ | 78 | ||||||||||||||||||
Financial_Instruments
Financial Instruments | 12 Months Ended | |||||||||||||||
Dec. 28, 2013 | ||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||
Financial Instruments | ' | |||||||||||||||
Financial Instruments | ||||||||||||||||
Available-for-sale securities held by the Company as of December 28, 2013 and December 29, 2012 were as follows: | ||||||||||||||||
December 28, | December 29, | |||||||||||||||
2013 | 2012 | |||||||||||||||
(In millions) | ||||||||||||||||
Fair Value | ||||||||||||||||
Classified as cash equivalents: | ||||||||||||||||
Money market funds | $ | 19 | $ | 402 | ||||||||||||
Commercial paper | 421 | 75 | ||||||||||||||
Total classified as cash equivalents | $ | 440 | $ | 477 | ||||||||||||
Classified as current marketable securities: | ||||||||||||||||
Commercial paper | $ | 178 | $ | 324 | ||||||||||||
Time deposits | 50 | 100 | ||||||||||||||
Auction rate securities | — | 28 | ||||||||||||||
Marketable equity securities | — | 1 | ||||||||||||||
Total classified as current marketable securities | $ | 228 | $ | 453 | ||||||||||||
Classified as long-term marketable securities: | ||||||||||||||||
Money market funds | $ | 2 | $ | 13 | ||||||||||||
Corporate bonds | 88 | 168 | ||||||||||||||
Total classified as long-term marketable securities | $ | 90 | $ | 181 | ||||||||||||
Classified as other assets: | ||||||||||||||||
Money market funds | $ | 18 | $ | 10 | ||||||||||||
Mutual funds | 14 | 14 | ||||||||||||||
Total classified as other assets | $ | 32 | $ | 24 | ||||||||||||
The amortized cost of available-for-sale securities approximates the fair value for all periods presented. | ||||||||||||||||
At December 28, 2013 and December 29, 2012, the Company had approximately $18 million and $10 million, respectively, 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 consolidated balance sheets. The Company is restricted from accessing these deposits. | ||||||||||||||||
At December 28, 2013 and December 29, 2012, the Company had approximately $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 consolidated balance sheets. The Company is restricted from accessing these investments. | ||||||||||||||||
The Company realized a loss of $2 million on sales of approximately $28 million of auction rate securities (ARS) holdings during 2013 that were classified as available-for-sale securities. The cost of securities sold is determined based on the specific identification method. There were no other sales of available-for-sale securities during 2013. The Company no longer holds any ARS investments as of December 28, 2013. | ||||||||||||||||
The Company did not realize any gain or loss on sale of approximately $6 million of available-for-sale securities during 2012. The Company recorded an other-than-temporary impairment charge of approximately $4 million on one of its ARS holdings during 2012. | ||||||||||||||||
At December 28, 2013 and December 29, 2012, $90 million and $181 million, respectively, 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 December 28, 2013 were within one year, except those for certain long-term marketable securities. The Company’s long-term marketable securities currently consist of corporate bonds and money market funds. The corporate bonds have maximum stated maturities of 2 years and the Company intends to invest the money market funds into corporate bonds with maturities greater than a year. 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) | ||||||||||||||||
28-Dec-13 | ||||||||||||||||
Assets | ||||||||||||||||
Classified as cash equivalents: | ||||||||||||||||
Money market funds | $ | 19 | $ | 19 | $ | — | $ | — | ||||||||
Commercial paper | 421 | — | 421 | — | ||||||||||||
Total classified as cash equivalents | $ | 440 | $ | 19 | $ | 421 | $ | — | ||||||||
Classified as marketable securities: | ||||||||||||||||
Commercial paper | $ | 178 | $ | — | $ | 178 | $ | — | ||||||||
Time deposits | 50 | — | 50 | — | ||||||||||||
Total classified as marketable securities | $ | 228 | $ | — | $ | 228 | $ | — | ||||||||
Classified as long-term marketable securities: | ||||||||||||||||
Money market funds | $ | 2 | $ | 2 | $ | — | $ | — | ||||||||
Corporate bonds | 88 | — | 88 | — | ||||||||||||
Total classified as long-term marketable securities | $ | 90 | $ | 2 | $ | 88 | $ | — | ||||||||
Classified as other assets: | ||||||||||||||||
Money market funds | $ | 18 | $ | 18 | $ | — | $ | — | ||||||||
Mutual funds | 14 | 14 | — | — | ||||||||||||
Total classified as other assets | $ | 32 | $ | 32 | $ | — | $ | — | ||||||||
Total assets measured at fair value | $ | 790 | $ | 53 | $ | 737 | $ | — | ||||||||
Liabilities | ||||||||||||||||
Classified as accrued liabilities: | $ | (4 | ) | $ | — | $ | (4 | ) | $ | — | ||||||
Foreign currency derivative contracts | ||||||||||||||||
Total liabilities measured at fair value | $ | (4 | ) | $ | — | $ | (4 | ) | $ | — | ||||||
29-Dec-12 | ||||||||||||||||
Assets | ||||||||||||||||
Classified as cash equivalents: | ||||||||||||||||
Money market funds | $ | 402 | $ | 402 | $ | — | $ | — | ||||||||
Commercial paper | 75 | — | 75 | — | ||||||||||||
Total classified as cash equivalents | $ | 477 | $ | 402 | $ | 75 | $ | — | ||||||||
Classified as marketable securities: | ||||||||||||||||
Commercial paper | $ | 324 | $ | — | $ | 324 | $ | — | ||||||||
Time deposits | 100 | — | 100 | — | ||||||||||||
Auction rate securities | 28 | — | — | 28 | ||||||||||||
Marketable Equity Security | 1 | 1 | — | — | ||||||||||||
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) | ||||||||||||||||
Total classified as 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 2013 and 2012. | ||||||||||||||||
ARS investments as of December 29, 2012 were classified within Level 3 because they were valued using a discounted cash flow model. Some of the inputs to this model are unobservable in the market and are significant. | ||||||||||||||||
The roll-forward of the ARS measured at fair value on a recurring basis using significant unobservable inputs (Level 3) is as follows: | ||||||||||||||||
December 28, | December 29, | |||||||||||||||
2013 | 2012 | |||||||||||||||
(In millions) | ||||||||||||||||
Beginning balance | $ | 28 | $ | 38 | ||||||||||||
Redemptions | (26 | ) | (6 | ) | ||||||||||||
Losses included in net loss | (2 | ) | — | |||||||||||||
Change in fair value included in net loss | — | (4 | ) | |||||||||||||
Ending balance | $ | — | $ | 28 | ||||||||||||
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: | ||||||||||||||||
December 29, | ||||||||||||||||
2012 | ||||||||||||||||
Discount rate for periodic interest payments | 0.84 | % | ||||||||||||||
Discount rate for principal repayments | 1.31 | % | ||||||||||||||
Liquidity discount | 0.9 | % | ||||||||||||||
Credit discount | 2.00% to 12.00% | |||||||||||||||
Estimated period | 17 to 20 years | |||||||||||||||
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: | ||||||||||||||||
December 28, | December 29, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Carrying | Estimated | Carrying | Estimated | |||||||||||||
amount | Fair Value | amount | Fair Value | |||||||||||||
(In millions) | ||||||||||||||||
Short-term debt (excluding capital leases) | $ | 55 | $ | 55 | $ | — | $ | — | ||||||||
Long-term debt (excluding capital leases) | $ | 1,986 | $ | 2,132 | $ | 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. |
Concentrations_of_Credit_and_O
Concentrations of Credit and Operation Risk | 12 Months Ended |
Dec. 28, 2013 | |
Risks and Uncertainties [Abstract] | ' |
Concentrations of Credit and Operation Risk | ' |
Concentrations of Credit and Operation Risk | |
Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of investments in debt securities, trade receivables and derivative financial instruments used in hedging activities. | |
The Company places its investments with high credit quality financial institutions and, by policy, limits the amount of credit exposure with any one financial institution. The Company invests in time deposits and certificates of deposit from banks having combined capital, surplus and undistributed profits of not less than $200 million. At the time an investment is made, investments in commercial paper and money market auction rate securities of industrial firms and financial institutions are rated A1, P1 or better. The Company invests in tax-exempt securities, including municipal notes and bonds, corporate bonds that are rated A, A2 or better and repurchase agreements, each of which have securities of the type and quality listed above as collateral. | |
The Company believes that concentrations of credit risk with respect to trade receivables are limited because a large number of geographically diverse customers make up the Company’s customer base, thus spreading the trade credit risk. Accounts receivable from the Company’s top three customers accounted for approximately 21%, 18% and 17% of the total consolidated accounts receivable balance as of December 28, 2013 and 22%, 16% and 14% of the total consolidated accounts receivable balance as of December 29, 2012. However, the Company does not believe the receivable balance from these customers represents a significant credit risk based on past collection experience. The Company manages its exposure to customer credit risk through credit limits, credit lines, monitoring procedures and credit approvals. Furthermore, the Company performs in-depth credit evaluations of all new customers and, at intervals, for existing customers. From this, the Company may require letters of credit, bank or corporate guarantees or advance payments, if deemed necessary. | |
The Company’s existing derivative financial instruments are with four large international financial institutions of investment grade credit rating. The Company does not believe that there is significant risk of nonperformance by these counterparties because the Company monitors their credit rating on an ongoing basis. By using derivative instruments, the Company is subject to credit and market risk. If a counterparty fails to fulfill its performance obligations under a derivative contract, the Company’s credit risk will equal the fair value of the derivative instrument. Generally, when the fair value of a derivative contract is positive, the counterparty owes the Company, thus creating a receivable risk for the Company. Based upon certain factors, including a review of the credit default swap rates for the Company’s counterparties, the Company determined its counterparty credit risk to be immaterial. At December 28, 2013, the Company's obligations under the contracts exceeded the counterparties’ obligations by $4 million. | |
The Company is dependent on certain equipment and materials from a limited number of suppliers and relies on a limited number of foreign companies to supply the majority of certain types of integrated circuit packages for its internal back-end manufacturing operations. Similarly, certain non-proprietary materials or components such as memory, PCBs, substrates and capacitors used in the manufacture of the Company’s graphics products are currently available from only a limited number of sources. Interruption of supply or increased demand in the industry could cause shortages and price increases in various essential materials. If the Company or its third-party manufacturing suppliers are unable to procure certain of these materials, or its foundries are unable to procure materials for manufacturing its products, its business would be materially adversely affected. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 28, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Income Taxes | ' | |||||||||||
Income Taxes | ||||||||||||
The provision (benefit) for income taxes consists of: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In millions) | ||||||||||||
Current: | ||||||||||||
U.S. Federal | $ | (2 | ) | $ | — | $ | (3 | ) | ||||
U.S. State and Local | — | — | 1 | |||||||||
Foreign National and Local | 10 | 6 | 4 | |||||||||
Total | 8 | 6 | 2 | |||||||||
Deferred: | ||||||||||||
U.S. Federal | 3 | (37 | ) | — | ||||||||
Foreign National and Local | (2 | ) | (3 | ) | (6 | ) | ||||||
Total | 1 | (40 | ) | (6 | ) | |||||||
Provision (benefit) for income taxes | $ | 9 | $ | (34 | ) | $ | (4 | ) | ||||
Income (loss) before income taxes consists of the following: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In millions) | ||||||||||||
U.S. | $ | (397 | ) | $ | (1,242 | ) | $ | 318 | ||||
Foreign | 323 | 25 | 173 | |||||||||
Total pre-tax income (loss) | $ | (74 | ) | $ | (1,217 | ) | $ | 491 | ||||
Deferred income taxes reflect the net tax effects of tax carryovers and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the balances for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities as of December 28, 2013 and December 29, 2012 are as follows: | ||||||||||||
December 28, | December 29, | |||||||||||
2013 | 2012 | |||||||||||
(In millions) | ||||||||||||
Deferred tax assets: | ||||||||||||
Net operating loss carryovers | $ | 1,701 | $ | 1,455 | ||||||||
Deferred distributor income | 49 | 55 | ||||||||||
Inventory valuation | 32 | 53 | ||||||||||
Accrued expenses not currently deductible | 113 | 118 | ||||||||||
Acquired intangibles | 343 | 385 | ||||||||||
Tax deductible goodwill | 271 | 323 | ||||||||||
Federal and state tax credit carryovers | 321 | 395 | ||||||||||
Foreign capitalized research and development costs | 22 | 36 | ||||||||||
Foreign research and development ITC credits | 305 | 316 | ||||||||||
Discount of convertible notes | 65 | 40 | ||||||||||
Other | 217 | 291 | ||||||||||
Total deferred tax assets | 3,439 | 3,467 | ||||||||||
Less: valuation allowance | (3,375 | ) | (3,401 | ) | ||||||||
Total deferred tax assets, net of valuation allowance | 64 | 66 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Acquired intangibles | (28 | ) | (33 | ) | ||||||||
Other | (17 | ) | (16 | ) | ||||||||
Total deferred tax liabilities | (45 | ) | (49 | ) | ||||||||
Net deferred tax assets | $ | 19 | $ | 17 | ||||||||
The breakdown between current and long-term deferred tax assets and deferred tax liabilities as of December 28, 2013 and December 29, 2012 is as follows: | ||||||||||||
December 28, | December 29, | |||||||||||
2013 | 2012 | |||||||||||
(In millions) | ||||||||||||
Current deferred tax assets | $ | 2 | $ | 1 | ||||||||
Non-current deferred tax assets | 18 | 16 | ||||||||||
Current deferred tax liabilities | (1 | ) | — | |||||||||
Net deferred tax assets | $ | 19 | $ | 17 | ||||||||
Current deferred tax assets and current deferred tax liabilities are included in captions “Prepaid expenses and other current assets” and “Accrued and other current liabilities,” respectively, on the consolidated balance sheets. Non-current deferred tax assets are included in the caption “Other assets” on the consolidated balance sheets. | ||||||||||||
As of December 28, 2013, substantially all of the Company’s U.S. and foreign deferred tax assets, net of deferred tax liabilities, continued to be subject to a valuation allowance. The realization of these assets is dependent on substantial future taxable income which, at December 28, 2013, in management’s estimate, is not more likely than not to be achieved. In 2013, the net valuation allowance decreased by $26 million primarily for decreases in deferred tax assets related to the utilization of net operating losses due to pre-tax book income in Canada. In 2012, the net valuation allowance increased by $423 million primarily for increases in deferred tax assets related to the net operating losses generated from pre-tax book losses net of the benefit relating to the SeaMicro acquisition. 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. In 2011, the net valuation allowance decreased by $245 million primarily for decreases in deferred tax assets related to the utilization of net operating losses due to pre-tax book income and a change in the book to tax basis in investments. | ||||||||||||
As of December 28, 2013 and December 29, 2012, the Company had $191 million and $192 million, respectively, of deferred tax assets subject to a valuation allowance that related to excess stock option deductions, which are not presented in the deferred tax asset balances. As of December 28, 2013 and December 29, 2012, $10 million of deferred tax assets subject to valuation allowance related to a deductible discount for tax only associated with the Company’s 6.00% Convertible Senior Notes due 2015 (the 6.00% Notes). The tax benefit from these deductions will increase capital in excess of par when realized. | ||||||||||||
The following is a summary of the various tax attribute carryforwards the Company had as of December 28, 2013. The amounts presented below include amounts related to excess stock option deductions, as discussed above. | ||||||||||||
Carryforward | Federal | State / | Expiration | |||||||||
Provincial | ||||||||||||
(In millions) | ||||||||||||
U.S.-net operating loss carryovers | $ | 4,598 | $ | 269 | 2018 to 2033 | |||||||
U.S.-credit carryovers | $ | 399 | $ | 188 | 2018 to 2033 | |||||||
Canada-net operating loss carryovers | $ | 355 | $ | 355 | 2025 to 2028 | |||||||
Canada-credit carryovers | $ | 387 | $ | 34 | 2021 to 2033 | |||||||
Canada-R&D pools | $ | 82 | $ | 82 | no expiration | |||||||
Barbados-net operating loss carryovers | $ | 287 | N/A | 2014 to 2017 | ||||||||
Other foreign net operating loss carryovers | $ | 8 | N/A | various | ||||||||
Utilization of $17 million of the Company’s U.S. federal net operating loss carryforwards are subject to annual limitations as a result of the ATI Technologies (ATI) acquisition. | ||||||||||||
The table below displays reconciliation between statutory federal income taxes and the total provision (benefit) for income taxes. | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In millions) | ||||||||||||
Statutory federal income tax provision (benefit) at 35% rate | $ | (26 | ) | $ | (426 | ) | $ | 172 | ||||
State taxes, net of federal benefit | 1 | 1 | 1 | |||||||||
Foreign income at other than U.S. rates | 15 | (13 | ) | (2 | ) | |||||||
U.S. valuation allowance generated (utilized) | 22 | 406 | (171 | ) | ||||||||
Credit monetization | (3 | ) | (2 | ) | (4 | ) | ||||||
Provision (benefit) for income taxes | $ | 9 | $ | (34 | ) | $ | (4 | ) | ||||
The Company has made no provision for U.S. income taxes on approximately $354 million of cumulative undistributed earnings of certain foreign subsidiaries through December 28, 2013 because it is the Company’s intention to permanently reinvest such earnings. If such earnings were distributed, the Company would incur additional income taxes of approximately $124 million (after an adjustment for foreign tax credits). These additional income taxes may not result in income tax expense or a cash payment to the Internal Revenue Service, but may result in the utilization of deferred tax assets that are currently subject to a valuation allowance. | ||||||||||||
The Company's operations in Malaysia currently operate under a tax holiday, which will expire in 2018. This tax holiday may be extended if specific conditions are met. The net impact of the tax holiday was to decrease the Company's net loss by $1 million in 2013, less than $.01 per share, diluted. The net impact of tax holidays decreased the Company's net loss by $11 million in 2012, less than $.02 per share, diluted, and increased the Company's net income by $9 million in 2011, less than $.01 per share, diluted. | ||||||||||||
A reconciliation of the gross unrecognized tax benefits is as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In millions) | ||||||||||||
Balance at beginning of year | $ | 56 | $ | 69 | $ | 42 | ||||||
Increases for tax positions taken in prior years | 1 | 3 | 28 | |||||||||
Decreases for tax positions taken in prior years | (2 | ) | (4 | ) | (4 | ) | ||||||
Increases for tax positions taken in the current year | 4 | 3 | 8 | |||||||||
Decreases for settlements with taxing authorities | (7 | ) | (15 | ) | (5 | ) | ||||||
Balance at end of year | $ | 52 | $ | 56 | $ | 69 | ||||||
The amount of unrecognized tax benefits that would impact the effective tax rate was $3 million, $2 million, and $4 million as of December 28, 2013, December 29, 2012 and December 31, 2011, respectively. The Company had no accrued interest related to unrecognized tax benefits as of December 28, 2013 and accrued interest related to unrecognized tax benefits of $2 million as of December 29, 2012 and December 31, 2011. The Company had no accrued penalties related to unrecognized tax benefits as of December 28, 2013, December 29, 2012 and December 31, 2011. The Company recognizes potential accrued interest and penalties to unrecognized tax benefits as interest expense and income tax expense, respectively. | ||||||||||||
The Company recorded a reduction of interest expense of $2 million and no charge related to penalty expense in its consolidated statement of operations in 2013. The Company had no charge related to interest expense or penalty expense in its consolidated statement of operations in 2012. The Company recorded a reduction of interest expense of $2 million and a decrease of $1 million of penalty expense in its consolidated statement of operations in 2011. During the 12 months beginning December 29, 2013, the Company expects to reduce its unrecognized tax benefits by $31 million primarily as a result of the settlement of tax audits with certain foreign tax authorities. The Company does not believe it is reasonably possible that other unrecognized tax benefits will materially change in the next 12 months. However, the resolutions and/or closure of open audits are highly uncertain. | ||||||||||||
As of December 25, 2010, the Canada Revenue Agency, or CRA, had completed its audit of ATI for the years 2000 through 2004 and issued its final Notice of Assessment. The CRA is currently auditing international transactions for the years 2005 through 2010. During the second quarter of 2010 the U.S. Internal Revenue Service completed its audit of the U.S. Federal income tax returns for the years ending 2004 through 2006 inclusive. As of December 31, 2011 the German tax authorities completed their audit of the Company’s former German subsidiaries for the tax years 2004 through 2007. The German tax authorities conducted an audit for the tax years 2008 through 2011 in 2013. The Company is not currently aware of any adjustments as a result of this audit. The Company and its subsidiaries have several foreign, foreign provincial, and U.S. state audits in process at any one point in time. The Company has provided for uncertain tax positions that require a liability under the adopted method to account for uncertainty in income taxes. The Company has not recognized any current or long-term deferred tax assets under a valuation allowance as a result of the application of uncertainty in income taxes in ASC 740 for unrecognized tax benefits as of December 28, 2013. |
Debt_and_Other_Obligations
Debt and Other Obligations | 12 Months Ended | |||||||||||
Dec. 28, 2013 | ||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||
Debt and Other Obligations | ' | |||||||||||
Debt and Other Obligations | ||||||||||||
Total Debt | ||||||||||||
The Company’s total debt as of December 28, 2013 and December 29, 2012 consisted of: | ||||||||||||
December 28, | December 29, | |||||||||||
2013 | 2012 | |||||||||||
(In millions) | ||||||||||||
6.00% Notes, net of discount | $ | 517 | $ | 555 | ||||||||
8.125% Notes, net of discount | 470 | 464 | ||||||||||
7.75% Notes | 500 | 500 | ||||||||||
7.50% Notes | 500 | 500 | ||||||||||
Secured Revolving Line of Credit | 55 | — | ||||||||||
Capital lease obligations | 16 | 23 | ||||||||||
Total debt | 2,058 | 2,042 | ||||||||||
Less: current portion | 60 | 5 | ||||||||||
Total debt, less current portion | $ | 1,998 | $ | 2,037 | ||||||||
6.00% Convertible Senior Notes due 2015 | ||||||||||||
On April 27, 2007, the Company issued $2.2 billion aggregate principal amount of the 6.00% Notes. The 6.00% Notes are general unsecured senior obligations. Interest is payable on May 1 and November 1 of each year beginning November 1, 2007 until the maturity date of May 1, 2015. The terms of the 6.00% Notes are governed by an Indenture (the 6.00% Indenture), dated April 27, 2007, between the Company and Wells Fargo Bank, N.A., as trustee. | ||||||||||||
In 2013, the Company repurchased $50 million in principal amount of the 6.00% Notes in open market transactions for $53 million. For the repurchase of the 6.00% Notes during 2013, the Company allocated $3 million of the $53 million aggregate cash payment to the equity component and reduced the principal amount of the debt by $50 million. The Company did not repurchase any of the 6.00% Notes in open market transactions in 2012. Prior to 2012, the Company repurchased $1.6 billion in principal amount of the 6.00% Notes for $1.4 billion. As of December 28, 2013, the outstanding aggregate principal amount of the 6.00% Notes was $530 million and the remaining carrying value was approximately $517 million, net of debt discount of $13 million. Subsequent to December 28, 2013, the Company repurchased an additional $64 million in principal amount of the 6.00% Notes. | ||||||||||||
The proceeds from the issuance of the 6.00% Notes were allocated between a liability (issued at a discount) and equity in a manner that reflects interest expense at the market interest rate for similar nonconvertible debt as of the original issuance date of the 6.00% Notes. The debt discount is being accreted from issuance through April 2015, the period the 6.00% Notes are expected to be outstanding, with the accretion recorded as additional non-cash interest expense. The equity component is included in the paid-in-capital portion of stockholders’ equity on the Company’s consolidated balance sheet. The initial value of the equity component ($259 million), which reflects the equity conversion feature of the 6.00% Notes, is equal to the initial debt discount. | ||||||||||||
Information related to equity and debt components: | ||||||||||||
December 28, | December 29, | |||||||||||
2013 | 2012 | |||||||||||
(In millions) | ||||||||||||
Carrying amount of the equity component | $ | 159 | $ | 162 | ||||||||
Principal amount of the 6.00% Notes | 530 | 580 | ||||||||||
Unamortized discount(1) | (13 | ) | (25 | ) | ||||||||
Net carrying amount | $ | 517 | $ | 555 | ||||||||
-1 | As of December 28, 2013, the remaining period over which the unamortized discount will be amortized is 16 months. | |||||||||||
Information related to interest rates and expense: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In millions, except percentages) | ||||||||||||
Effective interest rate | 8 | % | 8 | % | 8 | % | ||||||
Interest cost related to contractual interest coupon | $ | 45 | $ | 44 | $ | 45 | ||||||
Interest cost related to amortization of the discount | $ | 10 | $ | 9 | $ | 11 | ||||||
Upon the occurrence of certain events described in the 6.00% Indenture, the 6.00% Notes will be convertible into cash up to the principal amount, and if applicable, into shares of the Company’s common stock issuable upon conversion of the 6.00% Notes in respect of any conversion value above the principal amount, based on an initial conversion rate of 35.6125 shares of common stock per $1,000 principal amount of the 6.00% Notes, which is equivalent to an initial conversion price of $28.08 per share. This initial conversion price represents a premium of 100% relative to the last reported sale price of the Company’s common stock on April 23, 2007 (the trading date preceding the date of pricing of the 6.00% Notes) of $14.04 per share. The conversion rate will be adjusted for certain anti-dilution events. In addition, the conversion rate will be increased in the case of corporate events that constitute a fundamental change (as defined in the 6.00% Indenture) under certain circumstances. Holders of the 6.00% Notes may require the Company to repurchase the 6.00% Notes for cash equal to 100% of the principal amount to be repurchased plus accrued and unpaid interest upon the occurrence of a fundamental change or a termination of trading (as defined in the 6.00% Indenture). Additionally, an event of default (as defined in the 6.00% Indenture) may result in the acceleration of the maturity of the 6.00% Notes. | ||||||||||||
The 6.00% Notes rank equally with the Company’s existing and future senior debt and are senior to all of the Company’s future subordinated debt. The 6.00% Notes rank junior to all of the Company’s future senior secured debt to the extent of the collateral securing such debt and are structurally subordinated to all existing and future debt and liabilities of the Company’s subsidiaries. | ||||||||||||
8.125% Senior Notes Due 2017 | ||||||||||||
On November 30, 2009, the Company issued $500 million of the 8.125% Senior Notes Due 2017 (the 8.125% Notes) at a discount of 10.204%. The 8.125% Notes are general unsecured senior obligations. Interest is payable on June 15 and December 15 of each year beginning June 15, 2010 until the maturity date of December 15, 2017. The discount of $51 million is recorded as contra debt and is amortized to interest expense over the life of the 8.125% Notes using the effective interest method. The 8.125% Notes are governed by the terms of an indenture (the 8.125% Indenture) dated November 30, 2009 between the Company and Wells Fargo Bank, N.A., as trustee. | ||||||||||||
As of December 28, 2013, the outstanding aggregate principal amount of the 8.125% Notes was $500 million and the remaining carrying value was approximately $470 million, net of debt discount of $30 million. | ||||||||||||
As of December 15, 2013, the Company may redeem all or part of the 8.125% Notes at any time at specified redemption prices, plus accrued and unpaid interest. | ||||||||||||
Holders have the right to require the Company to repurchase all or a portion of the 8.125% Notes in the event that the Company undergoes a change of control, as defined in the indenture governing the 8.125% Notes, at a repurchase price of 101% of the principal amount plus accrued and unpaid interest. Additionally, an event of default (as defined in the 8.125% Indenture) may result in the acceleration of the maturity of the 8.125% Notes. | ||||||||||||
The 8.125% Indenture contains certain covenants that limit, among other things, the Company’s ability and the ability of its subsidiaries from: | ||||||||||||
• | incurring additional indebtedness, except specified permitted debt; | |||||||||||
• | paying dividends and making other restricted payments; | |||||||||||
• | making certain investments if an event of a default exists, or if specified financial conditions are not satisfied; | |||||||||||
• | creating or permitting certain liens; | |||||||||||
• | creating or permitting restrictions on the ability of its subsidiaries to pay dividends or make other distributions to the Company; | |||||||||||
• | using the proceeds from sales of assets; | |||||||||||
• | entering into certain types of transactions with affiliates; and | |||||||||||
• | consolidating, merging or selling the Company's assets as an entirety or substantially as an entirety. | |||||||||||
The 8.125% Notes rank equally with the Company’s existing and future senior debt and are senior to all of the Company’s future subordinated debt. The 8.125% Notes rank junior to all of the Company’s future senior secured debt to the extent of the collateral securing such debt and are structurally subordinated to all existing and future debt and liabilities of the Company’s subsidiaries. | ||||||||||||
7.75% Senior Notes Due 2020 | ||||||||||||
On August 4, 2010, the Company issued $500 million of the 7.75% Senior Notes Due 2020 (the 7.75% Notes). The 7.75% Notes are general unsecured senior obligations of the Company. Interest is payable on February 1 and August 1 of each year beginning February 1, 2011 until the maturity date of August 1, 2020. The 7.75% Notes are governed by the terms of an indenture (the 7.75% Indenture) dated August 4, 2010 between the Company and Wells Fargo Bank, N.A., as trustee. | ||||||||||||
As of December 28, 2013, the outstanding aggregate principal amount of the 7.75% Notes was $500 million. | ||||||||||||
Prior to August 1, 2015, the Company may redeem some or all of the 7.75% Notes at a price equal to 100% of the principal amount, plus accrued and unpaid interest and a “make whole” premium (as defined in the 7.75% Indenture). From August 1, 2015, the Company may redeem the 7.75% Notes at specified redemption prices, plus accrued and unpaid interest. | ||||||||||||
Holders have the right to require the Company to repurchase all or a portion of the 7.75% Notes in the event that the Company undergoes a change of control, as defined in the 7.75% Indenture, at a repurchase price of 101% of the principal amount plus accrued and unpaid interest. Additionally, an event of default (as defined in the 7.75% Indenture) may result in the acceleration of the maturity of the 7.75% Notes. | ||||||||||||
The 7.75% Indenture contains certain covenants that limit, among other things, the Company’s ability and the ability of its subsidiaries, from: | ||||||||||||
• | incurring additional indebtedness, except specified permitted debt; | |||||||||||
• | paying dividends and making other restricted payments; | |||||||||||
• | making certain investments if an event of a default exists, or if specified financial conditions are not satisfied; | |||||||||||
• | creating or permitting certain liens; | |||||||||||
• | creating or permitting restrictions on the ability of its subsidiaries to pay dividends or make other distributions to the Company; | |||||||||||
• | using the proceeds from sales of assets; | |||||||||||
• | entering into certain types of transactions with affiliates; and | |||||||||||
• | consolidating, merging or selling its assets as an entirety or substantially as an entirety. | |||||||||||
The 7.75% Notes rank equally with the Company’s existing and future senior debt and are senior to all of the Company’s future subordinated debt. The 7.75% Notes rank junior to all of the Company’s future senior secured debt to the extent of the collateral securing such debt and are structurally subordinated to all existing and future debt and liabilities of the Company’s subsidiaries. | ||||||||||||
7.50% Senior Notes Due 2022 | ||||||||||||
On August 15, 2012, the Company issued $500 million of the 7.50% Senior Notes due 2022 (the 7.50% Notes). The 7.50% Notes are general unsecured senior obligations of the Company. Interest is payable on February 15 and August 15 of each year beginning February 15, 2013 until the maturity date of August 15, 2022. The 7.50% Notes are governed by the terms of an indenture (the 7.50% Indenture) dated August 15, 2012 between the Company and Wells Fargo Bank, N.A., as trustee. | ||||||||||||
As of December 28, 2013, the outstanding aggregate principal amount of the 7.50% Notes was $500 million. | ||||||||||||
At any time (which may be more than once) before August 15, 2015, the Company can redeem up to 35% of the aggregate principal amount of the 7.50% Notes within 90 days of the closing of an equity offering with the net proceeds thereof at a redemption price not greater than 107.5% of the principal amount thereof, together with accrued and unpaid interest to but excluding the date of redemption. Prior to August 15, 2022, the Company may redeem some or all of the 7.50% Notes at a price equal to 100% of the principal amount, plus accrued and unpaid interest and a “make whole” premium (as defined in the 7.50% Indenture). | ||||||||||||
Holders have the right to require the Company to repurchase all or a portion of the 7.50% Notes in the event that the Company undergoes a change of control, as defined in the 7.50% Indenture, at a repurchase price of 101% of the principal amount plus accrued and unpaid interest. Additionally, an event of default (as defined in the 7.50% Indenture) may result in the acceleration of the maturity of the 7.50% Notes. | ||||||||||||
The 7.50% Indenture contains certain covenants that limit, among other things, the Company's ability and the ability of its subsidiaries, to: | ||||||||||||
•incur additional indebtedness, except specified permitted debt; | ||||||||||||
•pay dividends and make other restricted payments; | ||||||||||||
•make certain investments if an event of a default exists, or if specified financial conditions are not satisfied; | ||||||||||||
•create or permit certain liens; | ||||||||||||
•create or permit restrictions on the ability of its subsidiaries to pay dividends or make other distributions to the Company; | ||||||||||||
•use the proceeds from sales of assets; | ||||||||||||
•enter into certain types of transactions with affiliates; and | ||||||||||||
•consolidate, merge or sell its assets as entirety or substantially as an entirety. | ||||||||||||
The 7.50% Notes rank equally with the Company's existing and future senior debt and are senior to all of the Company's future subordinated debt. The 7.50% Notes rank junior to all of the Company's future senior secured debt to the extent of the collateral securing such debt and are structurally subordinated to all existing and future debt and liabilities of the Company's subsidiaries. | ||||||||||||
Potential Repurchase of Outstanding Notes | ||||||||||||
The Company may elect to purchase or otherwise retire the 6.00% Notes, 8.125% Notes, 7.75% Notes and 7.50% Notes with cash, stock or other assets from time to time in open market or privately negotiated transactions, either directly or through intermediaries, or by tender offer when the Company believes the market conditions are favorable to do so. Subsequent to December 28, 2013, the Company repurchased an additional $64 million in principal amount of the 6.00% Notes (which is a portion of the outstanding 6.00% Notes). | ||||||||||||
Secured Revolving Line of Credit | ||||||||||||
On November 12, 2013, the Company and its subsidiary, AMD International Sales & Service, Ltd. (the Borrowers), entered into a loan and security agreement (the Loan Agreement) for a senior secured asset based line of credit for a principal amount up to $500 million (the Secured Revolving Line of Credit) with up to $75 million available for issuance of letters of credit, with a group of lenders and Bank of America, N.A., acting as agent for the lenders (the “Agent”). The Secured Revolving Line of Credit matures on November 12, 2018. Borrowings under the Secured Revolving Line of Credit are limited to up to 85% of eligible account receivable minus certain reserves. The borrowings of the Secured Revolving Line of Credit may be used for general corporate purposes, including working capital needs. | ||||||||||||
The Borrowers can elect that the borrowings under the Secured Revolving Line of Credit may bear interest at a rate per annum equal to (a) London Interbank Offered Rate (LIBOR) plus an applicable margin ranging from 2.00% to 2.75%, or (b) (i) the greater of (x) the Agent’s prime rate, (y) the federal funds rate as published by the Federal Reserve Bank of New York plus 0.50%, and (z) LIBOR for a one-month period plus 1.00%, plus (ii) an applicable margin ranging from 1.00% to 1.75%. The applicable margin to be applied to the borrowings under the Company’s Secured Revolving Line of Credit is dependent on the Borrowers achieving a certain fixed charge coverage ratio. The Secured Revolving Line of Credit may be optionally prepaid or terminated or unutilized commitments may be reduced, in each case at any time without premium or penalty. In connection with the Secured Revolving Line of Credit, the Borrowers are required to pay an unused line fee equal to 0.50% per annum, payable monthly on the unused amount of the commitments under the Secured Revolving Line of Credit. The unused line fee decreases to 0.375% per annum when more than 50% of the Secured Revolving Line of Credit is utilized. The Borrowers will pay (i) a monthly fee on all letters of credit outstanding under the Secured Revolving Line of Credit equal to the applicable LIBOR margin and (ii) a fronting fee to the Agent equal to 0.125% of all such letters of credit, payable monthly in arrears. | ||||||||||||
The obligations under the Loan Agreement are secured by a first priority basis in the Borrowers’ account receivable, inventory and certain deposit accounts and specified related assets. | ||||||||||||
The Loan Agreement contains covenants that place certain restrictions on the Borrowers’ ability to, among other things, amend or modify certain terms of any debt of $50 million or more or subordinated debt, create or suffer to exist any liens upon accounts or inventory, sell or transfer any of Borrowers’ accounts or inventory other than certain ordinary-course transfers, make certain changes to either Borrower’s name or form or state of organization without notifying the Agent, or liquidate, dissolve, merge, combine or consolidate. Further restrictions apply during a domestic cash trigger period (a Domestic Cash Trigger Period), which occurs (i) upon an event of default or (ii) when the amount of domestic cash or cash equivalents held in certain accounts is at any time less than $500 million, and ends when both (a) no event of default has existed for 45 days and (b) the amount of domestic cash or cash equivalents held in such accounts has been equal to or greater than $500 million for 45 days. Such restrictions limit the Borrowers’ ability to, among other things, allow certain subsidiaries that manufacture or process inventory for the Borrowers to borrow secured debt or unsecured debt beyond a certain amount, create any liens upon any of the Borrowers’ property (other than customary permitted liens and liens on up to $1.5 billion of secured credit facilities debt (which amount includes the Secured Revolving Line of Credit)), declare or make any distributions, create any encumbrance on the ability of a subsidiary to make any upstream payments, make asset dispositions other than certain ordinary course dispositions, make certain loans, make payments with respect to subordinated debt or certain borrowed money prior to its due date, become a party to certain agreements restricting the Borrowers’ ability to incur or repay debt, grant liens, make distributions, or modify loan agreements or enter into any non-arm’s-length transaction with an affiliate. | ||||||||||||
During a Domestic Cash Trigger Period, the Borrowers are subject to financial covenants requirement and are required to maintain a fixed charge coverage ratio each four-fiscal quarter periods ending on and after March 29, 2014. | ||||||||||||
At December 28, 2013, the Secured Revolving Line of Credit had an outstanding loan balance of $55 million, with an interest rate of 2.75%, and up to $445 million remained available for future borrowings. As of December 28, 2013, the Company was in compliance with all required covenants stated in the Loan Agreement. | ||||||||||||
The agreements governing the 6.00% Notes, 8.125% Notes, 7.75% Notes and 7.50% Notes and the Secured Revolving Line of Credit contain cross-default provisions whereby a default under one agreement would likely result in cross defaults under agreements covering other borrowings. The occurrence of a default under any of these borrowing arrangements would permit the applicable note holders or the lenders under the Secured Revolving Line of Credit to declare all amounts outstanding under those borrowing arrangements to be immediately due and payable. | ||||||||||||
Capital Lease Obligations | ||||||||||||
As of December 28, 2013, the Company had aggregate outstanding capital lease obligations of $16 million for one of its facilities in Canada, which is payable in monthly installments through 2017. | ||||||||||||
The gross amount of assets recorded under capital leases totaled approximately $23 million as of December 28, 2013 and December 29, 2012, and is included in the related property, plant and equipment category. Amortization of assets recorded under capital leases is included in depreciation expense. Accumulated amortization of these leased assets was approximately $16 million and $14 million as of December 28, 2013 and December 29, 2012, respectively. | ||||||||||||
Future Payments on Total Debt | ||||||||||||
As of December 28, 2013, the Company’s future long term debt and capital lease payment obligations were as follows: | ||||||||||||
Long Term | Secured Revolving Line of Credit | Capital | ||||||||||
Debt | Leases | |||||||||||
(Principal | ||||||||||||
only) | ||||||||||||
(In millions) | ||||||||||||
2014 | $ | — | $ | 55 | $ | 6 | ||||||
2015 | 530 | — | 6 | |||||||||
2016 | — | — | 6 | |||||||||
2017 | 500 | — | 1 | |||||||||
2018 | — | — | — | |||||||||
2019 and thereafter | 1,000 | — | — | |||||||||
Total | 2,030 | 55 | 19 | |||||||||
Less: imputed interest | — | — | 3 | |||||||||
Total | $ | 2,030 | $ | 55 | $ | 16 | ||||||
Other_Income_Expense_Net
Other Income (Expense), Net | 12 Months Ended | |||||||||||
Dec. 28, 2013 | ||||||||||||
Income Statement Related Disclosures [Abstract] | ' | |||||||||||
Other Income (Expense), Net | ' | |||||||||||
Other Income (Expense), Net | ||||||||||||
The following table summarizes the components of other income (expense), net: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In millions) | ||||||||||||
GF investment impairment charge | $ | — | $ | — | $ | (209 | ) | |||||
Impairment charge on marketable securities | — | (4 | ) | — | ||||||||
Net loss on debt repurchases | (1 | ) | — | (6 | ) | |||||||
Other | (4 | ) | 10 | 16 | ||||||||
Other income (expense), net | $ | (5 | ) | $ | 6 | $ | (199 | ) | ||||
Segment_Reporting
Segment Reporting | 12 Months Ended | |||||||||||
Dec. 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, comprised of x86 microprocessors, as standalone devices or as incorporated as an | ||||||||||||
APU, chipsets, embedded processors and dense servers; and | ||||||||||||
•the Graphics and Visual Solutions segment, comprised of graphics processing units (GPUs) including professional | ||||||||||||
graphics, semi-custom System-on-Chip (SOC) products, revenue from development services and royalties for game consoles. | ||||||||||||
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 amortizations of acquired intangible assets, employee stock-based compensation expense, restructuring and other special charges, net, a charge related to the limited waiver of exclusivity from GF and legal settlements, net. The Company also reported the results of former businesses in the All Other category because the operating results were not material. | ||||||||||||
The following table provides a summary of net revenue and operating income (loss) by segment and income (loss) from continuing operations before income taxes for 2013, 2012 and 2011. | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In millions) | ||||||||||||
Net revenue: | ||||||||||||
Computing Solutions | $ | 3,104 | $ | 4,005 | $ | 5,002 | ||||||
Graphics and Visual Solutions | 2,193 | 1,417 | 1,565 | |||||||||
All Other | 2 | — | 1 | |||||||||
Total net revenue | $ | 5,299 | $ | 5,422 | $ | 6,568 | ||||||
Operating income (loss): | ||||||||||||
Computing Solutions | $ | (22 | ) | $ | (231 | ) | $ | 556 | ||||
Graphics and Visual Solutions | 216 | 105 | 51 | |||||||||
All Other | (91 | ) | (930 | ) | (239 | ) | ||||||
Total operating income (loss) | $ | 103 | $ | (1,056 | ) | $ | 368 | |||||
Interest income | 5 | 8 | 10 | |||||||||
Interest expense | (177 | ) | (175 | ) | (180 | ) | ||||||
Other income (expense), net | (5 | ) | 6 | (199 | ) | |||||||
Dilution gain in investee, net | — | — | 492 | |||||||||
Income (loss) from continuing operations before income taxes | $ | (74 | ) | $ | (1,217 | ) | $ | 491 | ||||
The Company does not discretely allocate assets to its operating segments, nor does management evaluate operating segments using discrete asset information. | ||||||||||||
The Company’s operations outside the United States include research and development activities; assembly, test, mark and packaging activities; and sales, marketing and administrative activities. The Company conducts product and system research and development activities for its products in the United States, with additional design and engineering teams China, Canada, India, Singapore, Taiwan, and Israel. The Company’s assembly, test, market and packaging facilities are located in Malaysia and China. The Company’s material sales and marketing offices are located in the United States, Latin America, Europe and Asia. | ||||||||||||
The following table summarizes sales to external customers by country: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In millions) | ||||||||||||
United States | $ | 801 | $ | 407 | $ | 456 | ||||||
Europe | 460 | 469 | 779 | |||||||||
China | 2,519 | 3,131 | 3,493 | |||||||||
Singapore | 610 | 856 | 1,056 | |||||||||
Japan | 710 | 305 | 445 | |||||||||
Other countries | 199 | 254 | 339 | |||||||||
Total sales to external customers | $ | 5,299 | $ | 5,422 | $ | 6,568 | ||||||
The Company had three customers that accounted for more than 10% of the Company’s consolidated net revenue in 2013, and one customer that accounted for more than 10% of the Company's consolidated net revenue in 2012 and 2011. Net sales to these customers were approximately 17%, 11% and 10% of consolidated net revenue in 2013 and 22% of consolidated net revenue in 2012 and 2011. | ||||||||||||
The following table summarizes long-lived assets by geographic areas: | ||||||||||||
December 28, | December 29, | |||||||||||
2013 | 2012 | |||||||||||
(In millions) | ||||||||||||
United States | $ | 153 | $ | 417 | ||||||||
Malaysia | 66 | 66 | ||||||||||
China | 46 | 59 | ||||||||||
Singapore | 18 | 37 | ||||||||||
Other countries | 63 | 79 | ||||||||||
Total long-lived assets | $ | 346 | $ | 658 | ||||||||
StockBased_Incentive_Compensat
Stock-Based Incentive Compensation Plans | 12 Months Ended | ||||||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||
Stock-Based Incentive Compensation Plans | ' | ||||||||||||||||||||
Stock-Based Incentive Compensation Plans | |||||||||||||||||||||
The Company’s stock-based incentive programs are intended to attract, retain and motivate highly qualified employees. On April 29, 2004, the Company’s stockholders approved the 2004 Equity Incentive Plan (the 2004 Plan). As of December 28, 2013, the Company also has stock options outstanding under previous equity compensation plans that were in effect before April 29, 2004, as well as equity compensation plans that the Company assumed as part of its SeaMicro acquisition. Shares reserved for future grants under the Company’s prior equity compensation plans were consolidated into the 2004 Plan; none of the reserved shares under the SeaMicro plan were consolidated into the 2004 Plan. As of December 28, 2013, the Company had 5.7 million shares of common stock that were available for future grants and 76 million shares reserved for issuance upon the exercise of outstanding stock options or the vesting of unvested restricted stock and restricted stock units . | |||||||||||||||||||||
Under the 2004 Plan, stock options generally vest and become exercisable over a three- to four-year period from the date of grant and expire within ten years after the grant date. Unvested shares that are reacquired by the Company from outstanding equity awards become available for grant and may be reissued as new awards. | |||||||||||||||||||||
Under the 2004 Plan, the Company can grant fair market value awards or full value awards. Fair market value awards are awards granted at or above the fair market value of the Company’s common stock on the date of grant. Full value awards are awards granted at less than the fair market value of the Company’s common stock on the date of grant. Awards can consist of (i) stock options and stock appreciation rights granted at the fair market value of the Company’s common stock on the date of grant and (ii) restricted stock or restricted stock units, as full value awards. Following is a description of the material terms of the awards that may be granted under the 2004 Plan. | |||||||||||||||||||||
Stock Options. A stock option is the right to purchase shares of the Company’s common stock at a fixed exercise price for a fixed period of time. Under the 2004 Plan, nonstatutory and incentive stock options may be granted. The exercise price of the shares subject to each nonstatutory stock option and incentive stock option cannot be less than 100% of the fair market value of the Company’s common stock on the date of the grant. The exercise price of each option granted under the 2004 Plan must be paid in full at the time of the exercise. | |||||||||||||||||||||
Stock Appreciation Rights. Awards of stock appreciation rights may be granted pursuant to the 2004 Plan. Stock appreciation rights may be granted to employees and consultants. No stock appreciation right may be granted at less than fair market value of the Company’s common stock on the date of grant or have a term of over ten years from the date of grant. Upon exercising a stock appreciation right, the holder of such right is entitled to receive payment from the Company in an amount determined by multiplying (i) the difference between the closing price of a share of the Company’s common stock on the date of exercise and the exercise price by (ii) the number of shares with respect to which the stock appreciation right is exercised. The Company’s obligation arising upon the exercise of a stock appreciation right may be paid in shares or in cash, or any combination thereof. | |||||||||||||||||||||
Restricted Stock. Restricted stock can be granted to any employee, director or consultant. The purchase price for an award of restricted stock is $0.00 per share. Restricted stock based on continued service may fully vest with no minimum time requirements. Restricted stock that is performance based generally may not fully vest for at least one year from the date of grant. | |||||||||||||||||||||
Restricted Stock Units. Restricted stock units are awards that can be granted to any employee, director or consultant and that obligate the Company to issue a specific number of shares of the Company’s common stock in the future if the vesting terms and conditions are satisfied. The purchase price for the shares is $0.00 per share. Restricted stock units based on continued service may fully vest with no minimum time requirements. | |||||||||||||||||||||
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. Restricted stock units that are performance based generally do not vest for at least one year from the date of grant. | |||||||||||||||||||||
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 | — | % | |||||||||||||||||||
Expected life | 1.44 years | ||||||||||||||||||||
Market-based Restricted Stock Units and Stock Options. During 2012, the Company granted restricted stock units with both a market condition and a service condition (market-based restricted stock units) to certain officers of the Company's. The market-based condition for these awards requires that AMD common stock maintains a weighted-average closing price during the three-year vesting period of equal to or greater than $10.00 per share over any 30-day period. Provided the market-based condition is satisfied and the respective officer remains an employee of the Company, the grants will vest in three equal annual installments on the applicable vesting date. | |||||||||||||||||||||
During 2011, the Company granted market-based restricted stock units and stock options to the Company’s President and Chief Executive Officer, whom the Company hired in August 2011. The market-based condition for these awards requires that AMD common stock maintains a weighted-average closing price during the three-year vesting period of equal to or greater than $11.00 per share over any 30-day period. Provided the market-based condition is satisfied and the Company's President and CEO remains an employee of the Company, the grants will vest in three equal annual installments on the applicable vesting date. | |||||||||||||||||||||
The Company estimated the fair value of market-based restricted stock units and stock options using a Monte Carlo simulation model on the date of grant. As of December 28, 2013, there were 1,693,000 market-based restricted stock units and 739,000 market-based stock options outstanding with a grant date fair value of $6.8 million and $2.0 million, respectively. | |||||||||||||||||||||
Valuation and Expense Information | |||||||||||||||||||||
Stock-based compensation expense related to employee stock options, restricted stock and restricted stock units was allocated in the consolidated statements of operations as follows: | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
(In millions) | |||||||||||||||||||||
Cost of sales | $ | 5 | $ | 8 | $ | 6 | |||||||||||||||
Research and development | 48 | 52 | 46 | ||||||||||||||||||
Marketing, general, and administrative | 38 | 37 | 38 | ||||||||||||||||||
Total stock-based compensation expense, net of tax of $0 | $ | 91 | $ | 97 | $ | 90 | |||||||||||||||
During 2013, 2012 and 2011, the Company did not realize any excess tax benefits related to stock-based compensation and therefore the Company did not record any effects relating to financing cash flows. The Company did not capitalize stock-based compensation cost as part of the cost of an asset because the cost was immaterial. | |||||||||||||||||||||
The Company uses the lattice-binomial model in determining the fair value of the employee stock options. | |||||||||||||||||||||
The weighted-average estimated fair value of employee stock options granted for the years ended December 28, 2013, December 29, 2012 and December 31, 2011 was $1.52, $2.12 and $2.85 per share respectively, using the following weighted-average assumptions: | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Expected volatility | 59.03 | % | 56.24 | % | 54.82 | % | |||||||||||||||
Risk-free interest rate | 0.79 | % | 0.52 | % | 1.6 | % | |||||||||||||||
Expected dividends | — | % | — | % | — | % | |||||||||||||||
Expected life (in years) | 3.83 | 3.79 | 3.75 | ||||||||||||||||||
The Company used a combination of the historical volatility of its common stock and the implied volatility for publicly traded options on the Company’s common stock as the expected volatility assumption required by the lattice-binomial model. The risk-free interest rate assumption is based upon observed interest rates commensurate with the term of the Company’s employee stock options. The expected dividend yield is zero as the Company does not expect to pay dividends in the future. The expected term of employee stock options represents the weighted-average period the stock options are expected to remain outstanding and is a derived output of the lattice-binomial model. | |||||||||||||||||||||
The following table summarizes stock option activity, including market-based stock options, and related information: | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Number | Weighted- | Number | Weighted- | Number | Weighted- | ||||||||||||||||
of Shares | Average | of Shares | Average | of Shares | Average | ||||||||||||||||
Exercise | Exercise | Exercise | |||||||||||||||||||
Price | Price | Price | |||||||||||||||||||
(In millions, except share price) | |||||||||||||||||||||
Stock options: | |||||||||||||||||||||
Outstanding at beginning of year | 38 | $ | 5.51 | 34 | $ | 7.36 | 37 | $ | 7.77 | ||||||||||||
Granted | 6 | $ | 3.63 | 17 | $ | 3.41 | 8 | $ | 7.16 | ||||||||||||
Canceled | (6 | ) | $ | 7.73 | (8 | ) | $ | 11.26 | (6 | ) | $ | 12.54 | |||||||||
Exercised | (3 | ) | $ | 1.56 | (5 | ) | $ | 2.71 | (5 | ) | $ | 3.82 | |||||||||
Outstanding at end of year | 35 | $ | 5.08 | 38 | $ | 5.51 | 34 | $ | 7.36 | ||||||||||||
Exercisable at end of year | 22 | $ | 5.62 | 22 | $ | 6.14 | 25 | $ | 7.48 | ||||||||||||
Included in the table above are approximately 1,652,000 vested and 4,792,000 unvested stock options issued upon the acquisition of SeaMicro in 2012 (See Note 4). The estimated fair value of the unvested stock options was $6.60 per share. | |||||||||||||||||||||
As of December 28, 2013, the weighted-average remaining contractual life of outstanding stock options was 4.25 years and their aggregate intrinsic value was $18 million. As of December 28, 2013, the weighted-average remaining contractual life of exercisable stock options was 3.20 years and their aggregate intrinsic value was $13 million. The total intrinsic value of stock options exercised for 2013, 2012 and 2011 was $5 million, $18 million and $21 million, respectively. | |||||||||||||||||||||
Restricted Stock and Restricted Stock Units. Restricted stock and restricted stock units vest in accordance with the terms and conditions established by the Compensation Committee of the Board of Directors, and are based either on continued service or continued service and performance. The cost of restricted stock and restricted stock units is determined using the fair value of the Company’s common stock on the date of the grant, and the compensation expense is recognized over the service period. | |||||||||||||||||||||
The summary of the changes in restricted stock and restricted stock units outstanding, including the market-based restricted stock units, during 2013, 2012 and 2011 is presented below: | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Number | Weighted- | Number | Weighted- | Number | Weighted- | ||||||||||||||||
of Shares | Average | of Shares | Average | of Shares | Average | ||||||||||||||||
Fair Value | Fair Value | Fair Value | |||||||||||||||||||
(In millions except share price) | |||||||||||||||||||||
Unvested balance at beginning of period | 25 | $ | 6.41 | 24 | $ | 7.07 | 24 | $ | 6.5 | ||||||||||||
Granted | 28 | $ | 3.81 | 17 | $ | 5.43 | 14 | $ | 7.34 | ||||||||||||
Forfeited | (3 | ) | $ | 5.76 | (5 | ) | $ | 6.84 | (4 | ) | $ | 6.66 | |||||||||
Vested | (10 | ) | $ | 6.93 | (11 | ) | $ | 6.05 | (10 | ) | $ | 6.25 | |||||||||
Unvested balance at end of period | 40 | $ | 4.52 | 25 | $ | 6.41 | 24 | $ | 7.07 | ||||||||||||
Included in the table above are approximately 322,000 shares of restricted stock granted upon the acquisition of SeaMicro in 2012 (See Note 4). The weighted-average estimated fair value of the restricted stock was $4.03. | |||||||||||||||||||||
The total fair value of restricted stock and restricted stock units vested during 2013, 2012 and 2011 was $36 million, $60 million and $74 million, respectively. Compensation expense recognized for the restricted stock and restricted stock units for 2013, 2012 and 2011 was approximately $68 million, $77 million and $73 million, respectively. | |||||||||||||||||||||
As of December 28, 2013, the Company had $26 million of total unrecognized compensation expense, net of estimated forfeitures, related to stock options that will be recognized over the weighted-average period of 1.90 years. | |||||||||||||||||||||
As of December 28, 2013, the Company had $112 million of total unrecognized compensation expense, net of estimated forfeitures, related to restricted stock and restricted stock units that will be recognized over the weighted-average period of 2.03 years. |
Other_Employee_Benefit_Plans
Other Employee Benefit Plans | 12 Months Ended |
Dec. 28, 2013 | |
Other Employee Benefit Plans [Abstract] | ' |
Other Employee Benefit Plans | ' |
Other Employee Benefit Plans | |
The Company has a retirement savings plan, commonly known as a 401(k) plan, that allows participating employees in the United States to contribute up to 100% of their pre-tax salary subject to Internal Revenue Service limits. The Company matched 75% of employees' contributions up to 6% of their compensation, to a maximum match of $11,475, $11,250 and $11,025 for 2013, 2012 and 2011, respectively, which is 4.5% (75% of the 6%) of the Internal Revenue Service compensation limit. The Company’s contributions to the 401(k) plan were approximately $19 million in 2013, $22 million in 2012 and $20 million in 2011. |
Commitments_and_Guarantees
Commitments and Guarantees | 12 Months Ended | |||||||
Dec. 28, 2013 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Commitments and Guarantees | ' | |||||||
Commitments and Guarantees | ||||||||
Operating Leases | ||||||||
As of December 28, 2013, the Company's future non-cancelable operating lease commitments, including those for facilities vacated in connection with restructuring activities, were as follows: | ||||||||
Year | Operating | |||||||
leases | ||||||||
(In millions) | ||||||||
2014 | $ | 59 | ||||||
2015 | 51 | |||||||
2016 | 43 | |||||||
2017 | 40 | |||||||
2018 | 39 | |||||||
2019 and thereafter | 156 | |||||||
Total non-cancelable operating lease commitments | $ | 388 | ||||||
The Company leases certain of its facilities and in some jurisdictions the Company leases the land on which these facilities are built, under non-cancelable lease agreements that expire at various dates through 2025. The Company also leases certain manufacturing and office equipment for terms ranging from 1 to 5 years. Rent expense was approximately $64 million, $49 million and $48 million in 2013, 2012 and 2011. | ||||||||
In December 1998, the Company arranged for the sale of its marketing, general and administrative facility in Sunnyvale, California and leased it back for a period of 20 years. The Company recorded a deferred gain of $37 million on the sale and is amortizing it over the life of the lease. The lease expires in December 2018. At the beginning of the fourth lease year and every three years thereafter, the rent is adjusted by 200% of the cumulative increase in the consumer price index over the prior three-year period, up to a maximum of 6.9%. | ||||||||
In September 2013, the Company sold a light industrial building in Singapore and leased back a portion of the original space. The Company recorded a deferred gain of $14 million on the sale and is amortizing over the initial lease term. The initial lease term expires in September 2023 and provides for options to extend the lease for 4 years, at the end of the initial lease term, and for an additional 3.5 years thereafter. | ||||||||
Certain other operating leases contain provisions for escalating lease payments subject to changes in the consumer price index. Total future lease obligations as of December 28, 2013, were approximately $388 million. | ||||||||
Purchase and Other Contractual Obligations | ||||||||
The Company’s purchase obligations primarily include the Company’s obligations to purchase wafers and substrates from third parties. As of December 28, 2013, total non-cancelable purchase obligations, excluding the Company's wafer purchase commitments to GF under the WSA, were $456 million. | ||||||||
The Company also had other contractual obligations, included in "Other long-term liabilities" on its consolidated balance sheet, which consists of $131 million of payments due under certain software and technology licenses that will be paid through 2017. | ||||||||
Future unconditional purchase obligations as of December 28, 2013 were as follows: | ||||||||
Year | Unconditional purchase obligations | |||||||
(In millions) | ||||||||
2014 | $ | 438 | ||||||
2015 | 80 | |||||||
2016 | 39 | |||||||
2017 | 30 | |||||||
2018 | — | |||||||
2019 and thereafter | — | |||||||
Total unconditional purchase commitments | $ | 587 | ||||||
Obligations to GF | ||||||||
Obligations to GF represents all of the Company’s contractual obligations to GF, including approximately $250 million for inventory purchases during the first quarter of 2014 and other payables under the WSA as described below. | ||||||||
Pursuant to the third amendment to the WSA, GF agreed to waive a portion of the Company’s wafer purchase commitments for the fourth quarter of 2012. In consideration for this waiver, the Company agreed to pay GF a fee of $320 million. The cash impact of this $320 million fee was paid over several quarters, with $80 million paid on December 28, 2012, $40 million paid on April 1, 2013 and $200 million paid on December 31, 2013. | ||||||||
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 CPU and AMD A-Series APU products that are commonly referred to as “processors in a box” and for PC workstation products. The Company 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 years ended December 28, 2013 and December 29, 2012 are as follows: | ||||||||
December 28, | December 29, | |||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
Beginning balance | $ | 16 | $ | 20 | ||||
New warranties issued during the period | 27 | 28 | ||||||
Settlements during the period | (25 | ) | (30 | ) | ||||
Changes in liability for pre-existing warranties during the period, including expirations | (1 | ) | (2 | ) | ||||
Ending balance | $ | 17 | $ | 16 | ||||
In addition to product warranties, the Company, from time to time in its normal course of business, indemnifies other parties, with whom it enters into contractual relationships, including customers, lessors and parties to other transactions with the Company, with respect to certain matters. In these limited matters, the Company has agreed to hold certain third parties harmless against specific types of claims or losses, such as those arising from a breach of representations or covenants, third-party claims that the Company’s products when used for their intended purpose(s) and under specific conditions infringe the intellectual property rights of a third party, or other specified claims made against the indemnified party. It is not possible to determine the maximum potential amount of liability under these indemnification obligations due to the unique facts and circumstances that are likely to be involved in each particular claim and indemnification provision. Historically, payments made by the Company under these obligations have not been material. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 28, 2013 | |
Loss Contingency [Abstract] | ' |
Contingencies | ' |
Contingencies | |
Securities Class Action | |
On January 15, 2014, a class action lawsuit captioned Hatamian v. AMD, et al., C.A. No. 3:14-cv-00226 was filed against the Company in the United States District Court for the Northern District of California. The complaint purports to assert claims against the Company and certain individual officers for alleged violations of Section 10(b) of the Securities Exchange Act of 1934, as amended (the Exchange Act), and Rule 10b-5 of the Exchange Act. The plaintiff seeks to represent a proposed class of all persons who purchased or otherwise acquired AMD common stock during the period October 27, 2011 through October 28, 2012. The complaint seeks damages allegedly caused by alleged materially misleading statements and/or material omissions by the Company and the individual officers regarding our 32nm technology and "Llano" product, which statements and omissions, the plaintiffs claim, allegedly operated to inflate artificially the price paid for AMD's common stock during the period. The complaint seeks unspecified compensatory damages, attorneys’ fees and costs. Based upon information presently known to the Company's management, the Company believes that the potential liability, if any, will not have a material adverse effect on our financial condition, cash flows or results of operations. | |
Environmental Matters | |
The Company is named as a responsible party on Superfund clean-up orders for three sites in Sunnyvale, California that are on the National Priorities List. Since 1981, the Company has discovered hazardous material releases to the groundwater from former underground tanks and proceeded to investigate and conduct remediation at these three sites. The chemicals released into the groundwater were commonly used in the semiconductor industry in the United States in the wafer fabrication process prior to 1979. | |
In 1991, the Company received Final Site Clean-up Requirements Orders from the California Regional Water Quality Control Board relating to the three sites. The Company has entered into settlement agreements with other responsible parties on two of the orders. During the term of such agreements other parties have agreed to assume most of the foreseeable costs as well as the primary role in conducting remediation activities under the orders. The Company remains responsible for additional costs beyond the scope of the agreements as well as all remaining costs in the event that the other parties do not fulfill their obligations under the settlement agreements. | |
To address anticipated future remediation costs under the orders, the Company has computed and recorded an estimated environmental liability of approximately $5.4 million and has not recorded any potential insurance recoveries in determining the estimated costs of the cleanup. The progress of future remediation efforts cannot be predicted with certainty and these costs may change. The Company believes that any amount in addition to what has already been accrued would not be material. | |
Other Legal Matters | |
The Company is a defendant or plaintiff in various actions that arose in the normal course of business. With respect to these matters, based on the management's current knowledge, the Company believes that the amount or range of reasonably possible loss, if any, will not, either individually or in the aggregate, have a material adverse effect on the Company's financial position, results of operations, or cash flows. |
Restructuring
Restructuring | 12 Months Ended | |||||||||||
Dec. 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 involves a workforce reduction of approximately 14% as well as asset impairments and facility consolidations. The Company recorded restructuring expense in the fourth quarter of 2012 of approximately $90 million which was primarily comprised of employee severance. The non-cash portion of the restructuring expense included approximately $4 million of asset impairments. In 2013, the Company incurred costs of $11 million related to facility consolidation and site closures, which were partially offset by the release of employee severance costs of $5 million. The 2012 restructuring 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 approximately 13% and contract and program terminations. The Company recorded a $100 million restructuring charge in the fourth quarter of 2011, which consisted of $54 million for severance and costs related to the continuation of certain employee benefits, $45 million for contract or program termination costs and $1 million for asset impairments. In 2012, the Company recorded an additional $8 million for severance and costs related to the continuation of certain employee benefits. The plan was completed as of the end of the first quarter of 2012. | ||||||||||||
The following table provides a summary of the restructuring activities during 2013 and 2012 and the related liabilities recorded in “Accrued and other current liabilities” on the Company’s consolidated balance sheets remaining as of December 28, 2013: | ||||||||||||
Severance | Other exit | Total | ||||||||||
and related | related | |||||||||||
benefits | costs | |||||||||||
(In millions) | ||||||||||||
Balance at December 31, 2011 | $ | 22 | $ | 45 | $ | 67 | ||||||
Charges | 95 | 5 | 100 | |||||||||
Cash payments | (76 | ) | (29 | ) | (105 | ) | ||||||
Non-cash charges (reversals), net | — | (4 | ) | (4 | ) | |||||||
Balance at December 29, 2012 | 41 | 17 | 58 | |||||||||
Charges (reversals), net | (5 | ) | 11 | 6 | ||||||||
Cash payments | (33 | ) | (21 | ) | (54 | ) | ||||||
Balance at December 28, 2013 | $ | 3 | $ | 7 | $ | 10 | ||||||
2008 Restructuring Plan | ||||||||||||
In 2011, the Company reversed approximately $2 million of costs associated with the 2008 restructuring plan because the actual restoration costs for vacated facilities were lower than previously estimated. | ||||||||||||
The following table provides a summary of each major type of cost associated with the 2012, 2011 and 2008 restructuring plans through December 28, 2013: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In millions) | ||||||||||||
Severance and benefits charges (reversals), net | $ | (5 | ) | $ | 95 | $ | 54 | |||||
Contract or program termination charges | — | — | 45 | |||||||||
Asset impairments | — | 4 | 1 | |||||||||
Facility consolidation and closure charges (reversals), net | 11 | 1 | (2 | ) | ||||||||
Total | $ | 6 | $ | 100 | $ | 98 | ||||||
Hedging_Transactions_and_Deriv
Hedging Transactions and Derivative Financial Instruments | 12 Months Ended | |||||||
Dec. 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 loss, the amount of gain (loss) reclassified from accumulated other comprehensive loss and included in earnings related to the foreign currency forward contracts designated as cash flow hedges and the amount of gain (loss) included in other income (expense), net, related to contracts not designated as hedging instruments, which was allocated in the consolidated statement of operations: | ||||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
Foreign Currency Forward Contracts | ||||||||
Contracts designated as cash flow hedging instruments | ||||||||
Other comprehensive income (loss) | $ | (3 | ) | $ | 2 | |||
Research and development | (2 | ) | — | |||||
Marketing, general and administrative | (1 | ) | — | |||||
Contracts not designated as hedging instruments | ||||||||
Other income (expense), net | $ | (2 | ) | $ | 1 | |||
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 and other current liabilities should these contracts be in a loss position. These amounts were recorded in the consolidated balance sheets as follows: | ||||||||
December 28, | December 29, | |||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
Foreign Currency Forward Contracts | ||||||||
Contracts designated as cash flow hedging instruments | $ | (3 | ) | $ | — | |||
Contracts not designated as hedging instruments | $ | (1 | ) | $ | — | |||
For the foreign currency contracts designated as cash flow hedges, the ineffective portions of the hedging relationship and the amounts excluded from the assessment of hedge effectiveness were immaterial. | ||||||||
As of December 28, 2013 and December 29, 2012, the notional value of the Company’s outstanding foreign currency forward contracts was $124 million and $142 million, respectively. All the contracts mature within 12 months, and upon maturity, the amounts recorded in accumulated other comprehensive 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 December 28, 2013, the Company’s outstanding contracts were in a net loss position of $4 million. The Company is required to post collateral should the derivative contracts be in a net loss position exceeding certain thresholds. As of December 28, 2013, the Company was not required to post any collateral. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||
Fiscal Year | ' | ||||||||||||||||
Fiscal Year. The Company uses a 52 or 53 week fiscal year ending on the last Saturday in December. Fiscal 2013, 2012 and 2011 ended December 28, 2013, December 29, 2012 and December 31, 2011, respectively, consisted of 52, 52 and 53 weeks, respectively. | |||||||||||||||||
Principles of Consolidation | ' | ||||||||||||||||
Principles of Consolidation. The consolidated financial statements include the Company’s accounts and those of its wholly-owned subsidiaries. Upon consolidation, all significant intercompany accounts and transactions are eliminated. | |||||||||||||||||
Use of Estimates | ' | ||||||||||||||||
Use of Estimates. The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of commitments and contingencies at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results are likely to differ from those estimates, and such differences may be material to the financial statements. Areas where management uses subjective judgment include, but are not limited to, revenue allowances, inventory valuation, valuation and impairment of goodwill, valuation of investments in marketable securities, deferred income taxes and restructuring charges. | |||||||||||||||||
Revenue Recognition | ' | ||||||||||||||||
Revenue Recognition. The Company recognizes revenue from products sold directly to customers, including original equipment manufacturers (OEMs), when persuasive evidence of an arrangement exists, the price is fixed or determinable, delivery has occurred and collectability is reasonably assured. Estimates of product returns, allowances and future price reductions, based on actual historical experience and other known or anticipated trends and factors, are recorded at the time revenue is recognized. The Company sells to distributors under terms allowing the majority of distributors certain rights of return and price protection on unsold merchandise held by them. The distributor agreements, which may be cancelled by either party upon specified notice, generally contain a provision for the return of those of the Company’s products that the Company has removed from its price book and that are not more than 12 months older than the manufacturing code date. In addition, some agreements with distributors may contain standard stock rotation provisions permitting limited levels of product returns. Therefore, the Company is unable to estimate the product returns and pricing when the product is sold to the distributors. Accordingly, the Company defers the gross margin resulting from the deferral of both revenue and related product costs from sales to distributors with agreements that have the aforementioned terms until the merchandise is resold by the distributors and reports such deferred amounts as “Deferred income on shipments to distributors” on its consolidated balance sheet. Products are sold to distributors at standard published prices that are contained in price books that are broadly provided to the Company’s various distributors. Distributors are then required to pay for these products within the Company’s standard commercial terms, which are typically net 30 days. The Company records allowances for price protection given to distributors and customer rebates in the period of distributor re-sale. The Company determines these allowances based on specific contractual terms with its distributors. Price reductions generally do not result in sales prices that are less than the Company’s product cost. Deferred income on shipments to distributors is revalued at the end of each period based on the change in inventory units at distributors, latest published prices and latest product costs. | |||||||||||||||||
The Company records estimated reductions to revenue under distributor and customer incentive programs, including certain cooperative advertising and marketing promotions and volume based incentives and special pricing arrangements, at the time the related revenues are recognized. For transactions where the Company reimburses a customer for a portion of the customer’s cost to perform specific product advertising or marketing and promotional activities, such amounts are recorded as a reduction of revenue unless they qualify for expense recognition. Shipping and handling costs associated with product sales are included in cost of sales. | |||||||||||||||||
Deferred revenue and related product costs were as follows: | |||||||||||||||||
December 28, | December 29, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
(In millions) | |||||||||||||||||
Deferred revenue | $ | 253 | $ | 189 | |||||||||||||
Deferred cost of sales | (108 | ) | (81 | ) | |||||||||||||
Deferred income on shipments to distributors | $ | 145 | $ | 108 | |||||||||||||
Inventories | ' | ||||||||||||||||
Inventories. Inventories are stated at standard cost adjusted to approximate the lower of actual cost (first-in, first-out method) or market. Inventories on hand in excess of forecasted demand are not valued. Obsolete inventories are written off. | |||||||||||||||||
Goodwill | ' | ||||||||||||||||
Goodwill. Goodwill represents the excess of the purchase price over the fair value of net tangible and identifiable intangible assets acquired. Goodwill is not amortized, but rather is tested for impairment at least annually or more frequently if indicators of impairment present. The Company performs its annual goodwill impairment analysis as of the first day of the fourth quarter of each year. The Company evaluates whether goodwill has been impaired at the reporting unit level by first determining whether the estimated fair value of the reporting unit is less than its carrying value and, if so, by determining whether the implied fair value of goodwill within the reporting unit is less than the carrying value. The implied fair value of goodwill is determined through the application of one or more valuation models common to the Company's industry, including the income, market and cost approaches. | |||||||||||||||||
Commitments and Contingencies | ' | ||||||||||||||||
Commitments and Contingencies. From time to time the Company is a defendant or plaintiff in various legal actions that arise in the normal course of business. The Company is also a party to environmental matters, including local, regional, state and federal government clean-up activities at or near locations where the Company currently or has in the past conducted business. The Company is required to assess the likelihood of any adverse judgments or outcomes to these matters as well as potential ranges of reasonably possible losses. A determination of the amount of reserves required for these commitments and contingencies, if any, that would be charged to earnings, includes assessing the probability of adverse outcomes and estimating the amount of potential losses. The required reserves, if any, may change in the future due to new developments in each matter or changes in circumstances such as a change in settlement strategy. Changes in required reserves could increase or decrease the Company’s earnings in the period the changes are made. (See Notes 16 and 17). | |||||||||||||||||
Restructuring Charges | ' | ||||||||||||||||
Restructuring Charges. Restructuring charges are primarily comprised of severance costs, contract and program termination costs and costs of facility consolidation and closure. Restructuring charges are recorded upon approval of a formal management plan and are included in the operating results of the period in which such plan is approved and the expense becomes estimable. To estimate restructuring charges, management utilizes assumptions of the number of employees that would be involuntarily terminated and of future costs to operate and eventually vacate duplicate facilities. Severance and other employee separation costs are accrued when it is probable that benefits will be paid and the amount is reasonably estimable. The rates used in determining severance accruals are based on the Company's policies and practices and negotiated settlements. | |||||||||||||||||
Cash Equivalents | ' | ||||||||||||||||
Cash Equivalents. Cash equivalents consist of financial instruments that are readily convertible into cash and have original maturities of three months or less at the time of purchase. | |||||||||||||||||
Investments in Certain Debt and Equity Securities | ' | ||||||||||||||||
Investments in Certain Debt and Equity Securities. The Company classifies its investments in debt and marketable equity securities at the date of acquisition as available-for-sale. Available-for-sale securities are reported at fair value with the related unrealized gains and losses included, net of tax, in other comprehensive income (loss), a component of stockholders’ equity. Realized gains and losses and declines in the value of available-for-sale securities determined to be other than temporary are included in other income (expense), net. The cost of securities sold is determined based on the specific identification method. | |||||||||||||||||
The Company classifies investments in debt securities with maturities of more than three months at the time of purchase as marketable securities on its consolidated balance sheet. Classification of these securities as current is based on the Company's intent and belief in its ability to sell these securities and use the proceeds from sale in operations within 12 months. | |||||||||||||||||
Derivative Financial Instruments | ' | ||||||||||||||||
Derivative Financial Instruments. The Company maintains a foreign currency hedging strategy, which uses derivative financial instruments to mitigate the risks associated with changes in foreign currency exchange rates. This strategy takes into consideration all of the Company’s consolidated exposures. The Company does not use derivative financial instruments for trading or speculative purposes. | |||||||||||||||||
In applying its strategy, the Company used foreign currency forward contracts to hedge certain forecasted expenses denominated in foreign currencies, primarily the Canadian dollar. The Company designated these contracts as cash flow hedges of forecasted expenses, to the extent eligible under the accounting rules, and evaluates hedge effectiveness prospectively and retrospectively. As such, the effective portion of the gain or loss on these contracts is reported as a component of accumulated other comprehensive income (loss) and reclassified to earnings in the same line item as the associated forecasted transaction and in the same period during which the hedged transaction affects earnings. Any ineffective portion is immediately recorded in earnings. | |||||||||||||||||
The Company also uses, from time to time, foreign currency forward contracts to economically hedge recognized foreign currency exposures on the balance sheets of various subsidiaries, primarily those denominated in Canadian dollars. The Company does not designate these forward contracts as hedging instruments. Accordingly, the gain or loss associated with these contracts is immediately recorded in earnings. | |||||||||||||||||
Property, Plant and Equipment | ' | ||||||||||||||||
Property, Plant and Equipment. Property, plant and equipment are stated at cost. Depreciation and amortization are provided on a straight-line basis over the estimated useful lives of the assets for financial reporting purposes. Estimated useful lives for financial reporting purposes are as follows: equipment, two to six years; buildings and building improvements, up to 39 years; and leasehold improvements, measured by the shorter of the remaining terms of the leases or the estimated useful economic lives of the improvements. | |||||||||||||||||
Product Warranties | ' | ||||||||||||||||
Product Warranties. The Company generally warrants that its products sold to its customers will conform to the Company’s approved specifications and be free from defects in material and workmanship under normal use and service for one year. Subject to certain exceptions, the Company also offers a three-year limited warranty to end users for only those CPU and AMD APU A-Series products that are commonly referred to as “processors in a box” for PC workstation products. The Company 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. | |||||||||||||||||
The Company accrues warranty costs at the time of sale of warranted products. | |||||||||||||||||
Foreign Currency Translation/Transactions | ' | ||||||||||||||||
Foreign Currency Translation/Transactions. The functional currency of all of the Company’s foreign subsidiaries is the U.S. dollar. Assets and liabilities denominated in non-U.S. dollars have been remeasured into U.S. dollars at current exchange rates for monetary assets and liabilities and historical exchange rates for non-monetary assets and liabilities. Non-U.S. dollar denominated transactions have been remeasured at average exchange rates in effect during each period, except for those cost of sales and expense transactions related to non-monetary balance sheet amounts, which have been remeasured at historical exchange rates. The gains or losses from foreign currency remeasurement are included in earnings. | |||||||||||||||||
Foreign Subsidies | ' | ||||||||||||||||
Foreign Subsidies. The Company received investment grants in connection with the construction and operation of certain facilities in Asia. Generally, such grants are subject to forfeiture in declining amounts over the life of the agreement if the Company does not maintain certain levels of employment or meet other conditions specified in the relevant grant documents. Accordingly, amounts granted are initially recorded as a receivable until cash proceeds are received. In the period the grant receivable is recorded, a current and long-term liability is also recorded which is subsequently amortized as a reduction to cost of sales. | |||||||||||||||||
The Company also received an investment grant relating to certain research and development projects. These research and development funds are recorded as a reduction of research and development expenses when all conditions and requirements set forth in the underlying grant agreement are met. | |||||||||||||||||
Marketing, Communications and Advertising Expenses | ' | ||||||||||||||||
Marketing, Communications and Advertising Expenses. Marketing, communications and advertising expenses for 2013, 2012 and 2011 were approximately $210 million, $287 million and $397 million, respectively. Cooperative advertising funding obligations under customer incentive programs are accrued and the costs are recorded upon agreement with customers and vendor partners. Cooperative advertising expenses are recorded as marketing, general and administrative expense to the extent the cash paid does not exceed the estimated fair value of the advertising benefit received. Any excess of cash paid over the estimated fair value of the advertising benefit received is recorded as a reduction of revenue. | |||||||||||||||||
Net 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 35 million shares issuable upon exercise of the warrants issued by the Company to West Coast Hitech L.P. (WCH), in connection with the initial GLOBALFOUNDRIES, Inc. (GF) transaction in 2009. The warrants became exercisable on July 24, 2009 at per share price of $0.01. | |||||||||||||||||
Diluted net income 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, 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: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
(In millions, except per share amounts) | |||||||||||||||||
Numerator—Net income (loss): | |||||||||||||||||
Numerator for basic and diluted income (loss) from continuing operations | $ | (83 | ) | $ | (1,183 | ) | $ | 495 | |||||||||
Numerator for basic and diluted income (loss) from discontinued operations | — | — | (4 | ) | |||||||||||||
Numerator for basic and diluted net income (loss) | $ | (83 | ) | $ | (1,183 | ) | $ | 491 | |||||||||
Denominator—Weighted-average shares: | |||||||||||||||||
Denominator for basic net income (loss) per share | 754 | 741 | 727 | ||||||||||||||
Effect of potentially dilutive shares: | |||||||||||||||||
Employee stock options, restricted stock and restricted stock units | — | — | 15 | ||||||||||||||
Denominator for diluted net income (loss) per share | 754 | 741 | 742 | ||||||||||||||
Net income (loss) per share: | |||||||||||||||||
Basic | |||||||||||||||||
Continuing operations | $ | (0.11 | ) | $ | (1.60 | ) | $ | 0.68 | |||||||||
Discontinued operations | — | — | (0.01 | ) | |||||||||||||
Basic net income (loss) per share | $ | (0.11 | ) | $ | (1.60 | ) | $ | 0.68 | |||||||||
Diluted | |||||||||||||||||
Continuing operations | $ | (0.11 | ) | $ | (1.60 | ) | $ | 0.67 | |||||||||
Discontinued operations | — | — | (0.01 | ) | |||||||||||||
Diluted net income (loss) per share | $ | (0.11 | ) | $ | (1.60 | ) | $ | 0.66 | |||||||||
Potential shares from outstanding stock options, restricted stock and restricted stock units totaling approximately 59 million, 45 million and 33 million for 2013, 2012 and 2011, respectively, were not included in the net income (loss) per share calculations as their inclusion would have been anti-dilutive. | |||||||||||||||||
Potential shares issuable under the Company’s 5.75% Convertible Senior Notes due 2012 (5.75% Notes) totaling 15 million and 24 million for 2012 and 2011, respectively, were not included in the net income (loss) per share calculations as their inclusion would have been anti-dilutive. | |||||||||||||||||
Accumulated Other Comprehensive Loss | ' | ||||||||||||||||
Accumulated Other Comprehensive Loss. Unrealized holding gains or losses on the Company’s available-for-sale securities, unrealized holding gains and losses on derivative financial instruments qualifying as cash flow hedges and changes in minimum pension liabilities are included in other comprehensive loss. | |||||||||||||||||
The table below summarizes the changes in accumulated other comprehensive loss by component for the years ended December 28, 2013 and December 29, 2012: | |||||||||||||||||
December 28, | December 29, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Unrealized gains (losses) on available-for-sale securities | Unrealized gains (losses) on cash flow hedges | Total | Unrealized gains (losses) on available-for-sale securities | Unrealized gains (losses) on cash flow hedges | Total | ||||||||||||
(In millions) | |||||||||||||||||
Beginning balance | — | (3 | ) | (3 | ) | (1 | ) | (4 | ) | (5 | ) | ||||||
Unrealized gains (losses) arising during the period, net of tax effects | (1 | ) | (6 | ) | (7 | ) | 1 | 1 | 2 | ||||||||
Reclassification adjustment for losses realized and included in net loss, net of tax effects | 2 | 6 | 8 | — | — | — | |||||||||||
Total other comprehensive income | 1 | — | 1 | 1 | 1 | 2 | |||||||||||
Ending balance | 1 | (3 | ) | (2 | ) | — | (3 | ) | (3 | ) | |||||||
Stock-Based Compensation | ' | ||||||||||||||||
Stock-Based Compensation. The Company estimates stock-based compensation cost for stock options at the grant date based on the option’s fair-value as calculated by the lattice-binomial option-pricing model. For restricted stock and restricted stock units, fair value is based on the closing price of the Company’s common stock on the grant date. The Company estimates the grant-date fair value of stock options, restricted stock and restricted stock units that involve a market condition using a Monte Carlo simulation model. The expense is recognized using the single option method which is ratable on a straight-line basis over the requisite service period. | |||||||||||||||||
The application of the lattice-binomial option-pricing model requires the use of extensive actual employee exercise behavior data and the use of a number of complex assumptions including expected volatility of the Company’s common stock, risk-free interest rate and expected dividends. Significant changes in any of these assumptions could materially affect the fair value of stock options granted in the future. | |||||||||||||||||
Forfeiture rates are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates in order to derive the Company’s best estimate of awards ultimately expected to vest. |
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Deferred Revenue and Related Product Costs | ' | ||||||||||||||||
December 28, | December 29, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
(In millions) | |||||||||||||||||
Deferred revenue | $ | 253 | $ | 189 | |||||||||||||
Deferred cost of sales | (108 | ) | (81 | ) | |||||||||||||
Deferred income on shipments to distributors | $ | 145 | $ | 108 | |||||||||||||
Net Income (Loss) Per Share | ' | ||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
(In millions, except per share amounts) | |||||||||||||||||
Numerator—Net income (loss): | |||||||||||||||||
Numerator for basic and diluted income (loss) from continuing operations | $ | (83 | ) | $ | (1,183 | ) | $ | 495 | |||||||||
Numerator for basic and diluted income (loss) from discontinued operations | — | — | (4 | ) | |||||||||||||
Numerator for basic and diluted net income (loss) | $ | (83 | ) | $ | (1,183 | ) | $ | 491 | |||||||||
Denominator—Weighted-average shares: | |||||||||||||||||
Denominator for basic net income (loss) per share | 754 | 741 | 727 | ||||||||||||||
Effect of potentially dilutive shares: | |||||||||||||||||
Employee stock options, restricted stock and restricted stock units | — | — | 15 | ||||||||||||||
Denominator for diluted net income (loss) per share | 754 | 741 | 742 | ||||||||||||||
Net income (loss) per share: | |||||||||||||||||
Basic | |||||||||||||||||
Continuing operations | $ | (0.11 | ) | $ | (1.60 | ) | $ | 0.68 | |||||||||
Discontinued operations | — | — | (0.01 | ) | |||||||||||||
Basic net income (loss) per share | $ | (0.11 | ) | $ | (1.60 | ) | $ | 0.68 | |||||||||
Diluted | |||||||||||||||||
Continuing operations | $ | (0.11 | ) | $ | (1.60 | ) | $ | 0.67 | |||||||||
Discontinued operations | — | — | (0.01 | ) | |||||||||||||
Diluted net income (loss) per share | $ | (0.11 | ) | $ | (1.60 | ) | $ | 0.66 | |||||||||
Accumulated Other Comprehensive Loss | ' | ||||||||||||||||
December 28, | December 29, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Unrealized gains (losses) on available-for-sale securities | Unrealized gains (losses) on cash flow hedges | Total | Unrealized gains (losses) on available-for-sale securities | Unrealized gains (losses) on cash flow hedges | Total | ||||||||||||
(In millions) | |||||||||||||||||
Beginning balance | — | (3 | ) | (3 | ) | (1 | ) | (4 | ) | (5 | ) | ||||||
Unrealized gains (losses) arising during the period, net of tax effects | (1 | ) | (6 | ) | (7 | ) | 1 | 1 | 2 | ||||||||
Reclassification adjustment for losses realized and included in net loss, net of tax effects | 2 | 6 | 8 | — | — | — | |||||||||||
Total other comprehensive income | 1 | — | 1 | 1 | 1 | 2 | |||||||||||
Ending balance | 1 | (3 | ) | (2 | ) | — | (3 | ) | (3 | ) | |||||||
Acquisition_Tables
Acquisition (Tables) | 12 Months Ended | |||||
Dec. 28, 2013 | ||||||
Business Combinations [Abstract] | ' | |||||
Allocation of Total Consideration to the Assets Acquired and Liabilities Assumed Based on the Estimated Fair Value of SeaMicro | ' | |||||
March 23, | Estimated useful lives | |||||
2012 | ||||||
(In millions) | ||||||
Purchase consideration | ||||||
Cash | $ | 293 | ||||
Vested portion of the replacement grants | 19 | |||||
Total purchase consideration | $ | 312 | ||||
Tangible assets acquired | $ | 24 | ||||
Identified intangible assets acquired | ||||||
Developed technology | 86 | 8 years | ||||
In-process research and development | 11 | |||||
Customer relationships | 4 | 4 years | ||||
Trade name | 1 | 4 years | ||||
Total assets acquired | 126 | |||||
Liabilities assumed | 8 | |||||
Deferred tax liabilities | 36 | |||||
Total liabilities assumed | 44 | |||||
Goodwill | $ | 230 | ||||
Supplemental_Balance_Sheet_Inf1
Supplemental Balance Sheet Information (Tables) | 12 Months Ended | |||||||
Dec. 28, 2013 | ||||||||
Balance Sheet Related Disclosures [Abstract] | ' | |||||||
Accounts Receivable | ' | |||||||
December 28, | December 29, | |||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
Accounts receivable | $ | 832 | $ | 632 | ||||
Allowance for doubtful accounts | — | (2 | ) | |||||
Total accounts receivable, net | $ | 832 | $ | 630 | ||||
Inventories | ' | |||||||
December 28, | December 29, | |||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
Raw materials | $ | 30 | $ | 29 | ||||
Work in process | 727 | 357 | ||||||
Finished goods | 127 | 176 | ||||||
Total inventories, net | $ | 884 | $ | 562 | ||||
Property, Plant and Equipment | ' | |||||||
December 28, | December 29, | |||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
Land and land improvements | $ | 3 | $ | 31 | ||||
Buildings and leasehold improvements | 246 | 591 | ||||||
Equipment | 1,466 | 1,585 | ||||||
Construction in progress | 18 | 11 | ||||||
1,733 | 2,218 | |||||||
Accumulated depreciation and amortization | (1,387 | ) | (1,560 | ) | ||||
Total property, plant and equipment, net | $ | 346 | $ | 658 | ||||
Other Assets | ' | |||||||
December 28, | December 29, | |||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
Software technology and licenses | $ | 280 | $ | 155 | ||||
Other | 106 | 92 | ||||||
Total other assets | $ | 386 | $ | 247 | ||||
Accrued and Other Current Liabilities | ' | |||||||
December 28, | December 29, | |||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
Accrued compensation and benefits | $ | 186 | $ | 158 | ||||
Marketing programs and advertising expenses | 150 | 160 | ||||||
Software technology and licenses payable | 27 | 18 | ||||||
Other accrued and current liabilities | 167 | 216 | ||||||
Total accrued and other current liabilities | $ | 530 | $ | 552 | ||||
Goodwill_and_Acquired_Intangib1
Goodwill and Acquired Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 28, 2013 | ||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||
Schedule of Goodwill | ' | |||||||||||||||||||
Computing | Graphics and Visual Solutions | All Other | Total | |||||||||||||||||
Solutions | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
Initial goodwill due to ATI acquisition | $ | 161 | $ | 1,288 | $ | 745 | $ | 2,194 | ||||||||||||
Initial goodwill due to SeaMicro acquisition | 230 | — | — | 230 | ||||||||||||||||
391 | 1,288 | 745 | 2,424 | |||||||||||||||||
Accumulated impairment losses | (161 | ) | (965 | ) | (745 | ) | (1,871 | ) | ||||||||||||
Balance as of December 29, 2012 | 230 | 323 | — | 553 | ||||||||||||||||
Goodwill adjustments | — | — | — | — | ||||||||||||||||
Impairment charges | — | — | — | — | ||||||||||||||||
Balance as of December 28, 2013 | $ | 230 | $ | 323 | $ | — | $ | 553 | ||||||||||||
Schedule of Acquired Intangible Assets by Major Class | ' | |||||||||||||||||||
Developed technology | In-process research and development | Customer | Trademark | Total | ||||||||||||||||
relationships | and trade | |||||||||||||||||||
name | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
Intangible assets, net as of December 31, 2011 | $ | — | $ | — | $ | — | $ | 8 | $ | 8 | ||||||||||
Addition due to SeaMicro acquisition | 86 | 11 | 4 | 1 | 102 | |||||||||||||||
Completion of in-process research and development | 5 | (5 | ) | — | — | — | ||||||||||||||
Amortization expense | (9 | ) | — | (1 | ) | (4 | ) | (14 | ) | |||||||||||
Intangible assets, net as of December 29, 2012 | 82 | 6 | 3 | 5 | 96 | |||||||||||||||
Amortization expense | (13 | ) | — | (1 | ) | (4 | ) | (18 | ) | |||||||||||
Intangible assets, net as of December 28, 2013 | $ | 69 | $ | 6 | $ | 2 | $ | 1 | $ | 78 | ||||||||||
Weighted-average amortization period as of December 28, 2013 | 6.05 years | N/A | 2.25 years | 2.25 years | 4.94 years | |||||||||||||||
Schedule of Acquired Intangible Assets, Future Amortization Expense | ' | |||||||||||||||||||
Year | (In millions) | |||||||||||||||||||
2014 | $ | 13 | ||||||||||||||||||
2015 | 13 | |||||||||||||||||||
2016 | 11 | |||||||||||||||||||
2017 | 11 | |||||||||||||||||||
2018 | 11 | |||||||||||||||||||
2019 and thereafter | 13 | |||||||||||||||||||
Total intangible assets subject to amortization | 72 | |||||||||||||||||||
In-process research and development | 6 | |||||||||||||||||||
Total intangible assets, net | $ | 78 | ||||||||||||||||||
Financial_Instruments_Tables
Financial Instruments (Tables) | 12 Months Ended | |||||||||||||||
Dec. 28, 2013 | ||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||
Summary of Available-for-sale Securities | ' | |||||||||||||||
December 28, | December 29, | |||||||||||||||
2013 | 2012 | |||||||||||||||
(In millions) | ||||||||||||||||
Fair Value | ||||||||||||||||
Classified as cash equivalents: | ||||||||||||||||
Money market funds | $ | 19 | $ | 402 | ||||||||||||
Commercial paper | 421 | 75 | ||||||||||||||
Total classified as cash equivalents | $ | 440 | $ | 477 | ||||||||||||
Classified as current marketable securities: | ||||||||||||||||
Commercial paper | $ | 178 | $ | 324 | ||||||||||||
Time deposits | 50 | 100 | ||||||||||||||
Auction rate securities | — | 28 | ||||||||||||||
Marketable equity securities | — | 1 | ||||||||||||||
Total classified as current marketable securities | $ | 228 | $ | 453 | ||||||||||||
Classified as long-term marketable securities: | ||||||||||||||||
Money market funds | $ | 2 | $ | 13 | ||||||||||||
Corporate bonds | 88 | 168 | ||||||||||||||
Total classified as long-term marketable securities | $ | 90 | $ | 181 | ||||||||||||
Classified as other assets: | ||||||||||||||||
Money market funds | $ | 18 | $ | 10 | ||||||||||||
Mutual funds | 14 | 14 | ||||||||||||||
Total classified as other assets | $ | 32 | $ | 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) | ||||||||||||||||
28-Dec-13 | ||||||||||||||||
Assets | ||||||||||||||||
Classified as cash equivalents: | ||||||||||||||||
Money market funds | $ | 19 | $ | 19 | $ | — | $ | — | ||||||||
Commercial paper | 421 | — | 421 | — | ||||||||||||
Total classified as cash equivalents | $ | 440 | $ | 19 | $ | 421 | $ | — | ||||||||
Classified as marketable securities: | ||||||||||||||||
Commercial paper | $ | 178 | $ | — | $ | 178 | $ | — | ||||||||
Time deposits | 50 | — | 50 | — | ||||||||||||
Total classified as marketable securities | $ | 228 | $ | — | $ | 228 | $ | — | ||||||||
Classified as long-term marketable securities: | ||||||||||||||||
Money market funds | $ | 2 | $ | 2 | $ | — | $ | — | ||||||||
Corporate bonds | 88 | — | 88 | — | ||||||||||||
Total classified as long-term marketable securities | $ | 90 | $ | 2 | $ | 88 | $ | — | ||||||||
Classified as other assets: | ||||||||||||||||
Money market funds | $ | 18 | $ | 18 | $ | — | $ | — | ||||||||
Mutual funds | 14 | 14 | — | — | ||||||||||||
Total classified as other assets | $ | 32 | $ | 32 | $ | — | $ | — | ||||||||
Total assets measured at fair value | $ | 790 | $ | 53 | $ | 737 | $ | — | ||||||||
Liabilities | ||||||||||||||||
Classified as accrued liabilities: | $ | (4 | ) | $ | — | $ | (4 | ) | $ | — | ||||||
Foreign currency derivative contracts | ||||||||||||||||
Total liabilities measured at fair value | $ | (4 | ) | $ | — | $ | (4 | ) | $ | — | ||||||
29-Dec-12 | ||||||||||||||||
Assets | ||||||||||||||||
Classified as cash equivalents: | ||||||||||||||||
Money market funds | $ | 402 | $ | 402 | $ | — | $ | — | ||||||||
Commercial paper | 75 | — | 75 | — | ||||||||||||
Total classified as cash equivalents | $ | 477 | $ | 402 | $ | 75 | $ | — | ||||||||
Classified as marketable securities: | ||||||||||||||||
Commercial paper | $ | 324 | $ | — | $ | 324 | $ | — | ||||||||
Time deposits | 100 | — | 100 | — | ||||||||||||
Auction rate securities | 28 | — | — | 28 | ||||||||||||
Marketable Equity Security | 1 | 1 | — | — | ||||||||||||
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) | ||||||||||||||||
Total classified as 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 | ' | |||||||||||||||
December 28, | December 29, | |||||||||||||||
2013 | 2012 | |||||||||||||||
(In millions) | ||||||||||||||||
Beginning balance | $ | 28 | $ | 38 | ||||||||||||
Redemptions | (26 | ) | (6 | ) | ||||||||||||
Losses included in net loss | (2 | ) | — | |||||||||||||
Change in fair value included in net loss | — | (4 | ) | |||||||||||||
Ending balance | $ | — | $ | 28 | ||||||||||||
Fair Value Inputs, Assets, Quantitative Information | ' | |||||||||||||||
December 29, | ||||||||||||||||
2012 | ||||||||||||||||
Discount rate for periodic interest payments | 0.84 | % | ||||||||||||||
Discount rate for principal repayments | 1.31 | % | ||||||||||||||
Liquidity discount | 0.9 | % | ||||||||||||||
Credit discount | 2.00% to 12.00% | |||||||||||||||
Estimated period | 17 to 20 years | |||||||||||||||
Financial Instruments Not Recorded at Fair Value on a Recurring Basis | ' | |||||||||||||||
December 28, | December 29, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Carrying | Estimated | Carrying | Estimated | |||||||||||||
amount | Fair Value | amount | Fair Value | |||||||||||||
(In millions) | ||||||||||||||||
Short-term debt (excluding capital leases) | $ | 55 | $ | 55 | $ | — | $ | — | ||||||||
Long-term debt (excluding capital leases) | $ | 1,986 | $ | 2,132 | $ | 2,019 | $ | 1,837 | ||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 28, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Provision (Benefit) for Income Taxes | ' | |||||||||||
2013 | 2012 | 2011 | ||||||||||
(In millions) | ||||||||||||
Current: | ||||||||||||
U.S. Federal | $ | (2 | ) | $ | — | $ | (3 | ) | ||||
U.S. State and Local | — | — | 1 | |||||||||
Foreign National and Local | 10 | 6 | 4 | |||||||||
Total | 8 | 6 | 2 | |||||||||
Deferred: | ||||||||||||
U.S. Federal | 3 | (37 | ) | — | ||||||||
Foreign National and Local | (2 | ) | (3 | ) | (6 | ) | ||||||
Total | 1 | (40 | ) | (6 | ) | |||||||
Provision (benefit) for income taxes | $ | 9 | $ | (34 | ) | $ | (4 | ) | ||||
Schedule of Income (Loss) before Income Tax | ' | |||||||||||
2013 | 2012 | 2011 | ||||||||||
(In millions) | ||||||||||||
U.S. | $ | (397 | ) | $ | (1,242 | ) | $ | 318 | ||||
Foreign | 323 | 25 | 173 | |||||||||
Total pre-tax income (loss) | $ | (74 | ) | $ | (1,217 | ) | $ | 491 | ||||
Schedule of Deferred Tax Assets and Liabilities | ' | |||||||||||
December 28, | December 29, | |||||||||||
2013 | 2012 | |||||||||||
(In millions) | ||||||||||||
Deferred tax assets: | ||||||||||||
Net operating loss carryovers | $ | 1,701 | $ | 1,455 | ||||||||
Deferred distributor income | 49 | 55 | ||||||||||
Inventory valuation | 32 | 53 | ||||||||||
Accrued expenses not currently deductible | 113 | 118 | ||||||||||
Acquired intangibles | 343 | 385 | ||||||||||
Tax deductible goodwill | 271 | 323 | ||||||||||
Federal and state tax credit carryovers | 321 | 395 | ||||||||||
Foreign capitalized research and development costs | 22 | 36 | ||||||||||
Foreign research and development ITC credits | 305 | 316 | ||||||||||
Discount of convertible notes | 65 | 40 | ||||||||||
Other | 217 | 291 | ||||||||||
Total deferred tax assets | 3,439 | 3,467 | ||||||||||
Less: valuation allowance | (3,375 | ) | (3,401 | ) | ||||||||
Total deferred tax assets, net of valuation allowance | 64 | 66 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Acquired intangibles | (28 | ) | (33 | ) | ||||||||
Other | (17 | ) | (16 | ) | ||||||||
Total deferred tax liabilities | (45 | ) | (49 | ) | ||||||||
Net deferred tax assets | $ | 19 | $ | 17 | ||||||||
Schedule of Deferred Tax Assets and Liabilities, Current and Noncurrent | ' | |||||||||||
December 28, | December 29, | |||||||||||
2013 | 2012 | |||||||||||
(In millions) | ||||||||||||
Current deferred tax assets | $ | 2 | $ | 1 | ||||||||
Non-current deferred tax assets | 18 | 16 | ||||||||||
Current deferred tax liabilities | (1 | ) | — | |||||||||
Net deferred tax assets | $ | 19 | $ | 17 | ||||||||
Summary of Tax Attribute Carryforwards | ' | |||||||||||
Carryforward | Federal | State / | Expiration | |||||||||
Provincial | ||||||||||||
(In millions) | ||||||||||||
U.S.-net operating loss carryovers | $ | 4,598 | $ | 269 | 2018 to 2033 | |||||||
U.S.-credit carryovers | $ | 399 | $ | 188 | 2018 to 2033 | |||||||
Canada-net operating loss carryovers | $ | 355 | $ | 355 | 2025 to 2028 | |||||||
Canada-credit carryovers | $ | 387 | $ | 34 | 2021 to 2033 | |||||||
Canada-R&D pools | $ | 82 | $ | 82 | no expiration | |||||||
Barbados-net operating loss carryovers | $ | 287 | N/A | 2014 to 2017 | ||||||||
Other foreign net operating loss carryovers | $ | 8 | N/A | various | ||||||||
Schedule of Effective Income Tax Rate Reconciliation | ' | |||||||||||
2013 | 2012 | 2011 | ||||||||||
(In millions) | ||||||||||||
Statutory federal income tax provision (benefit) at 35% rate | $ | (26 | ) | $ | (426 | ) | $ | 172 | ||||
State taxes, net of federal benefit | 1 | 1 | 1 | |||||||||
Foreign income at other than U.S. rates | 15 | (13 | ) | (2 | ) | |||||||
U.S. valuation allowance generated (utilized) | 22 | 406 | (171 | ) | ||||||||
Credit monetization | (3 | ) | (2 | ) | (4 | ) | ||||||
Provision (benefit) for income taxes | $ | 9 | $ | (34 | ) | $ | (4 | ) | ||||
Schedule of Unrecognized Tax Benefits Roll Forward | ' | |||||||||||
2013 | 2012 | 2011 | ||||||||||
(In millions) | ||||||||||||
Balance at beginning of year | $ | 56 | $ | 69 | $ | 42 | ||||||
Increases for tax positions taken in prior years | 1 | 3 | 28 | |||||||||
Decreases for tax positions taken in prior years | (2 | ) | (4 | ) | (4 | ) | ||||||
Increases for tax positions taken in the current year | 4 | 3 | 8 | |||||||||
Decreases for settlements with taxing authorities | (7 | ) | (15 | ) | (5 | ) | ||||||
Balance at end of year | $ | 52 | $ | 56 | $ | 69 | ||||||
Debt_and_Other_Obligations_Tab
Debt and Other Obligations (Tables) | 12 Months Ended | |||||||||||
Dec. 28, 2013 | ||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||
Schedule of Debt and Other Obligations | ' | |||||||||||
December 28, | December 29, | |||||||||||
2013 | 2012 | |||||||||||
(In millions) | ||||||||||||
6.00% Notes, net of discount | $ | 517 | $ | 555 | ||||||||
8.125% Notes, net of discount | 470 | 464 | ||||||||||
7.75% Notes | 500 | 500 | ||||||||||
7.50% Notes | 500 | 500 | ||||||||||
Secured Revolving Line of Credit | 55 | — | ||||||||||
Capital lease obligations | 16 | 23 | ||||||||||
Total debt | 2,058 | 2,042 | ||||||||||
Less: current portion | 60 | 5 | ||||||||||
Total debt, less current portion | $ | 1,998 | $ | 2,037 | ||||||||
Schedule of Information Related to Equity and Debt Components | ' | |||||||||||
December 28, | December 29, | |||||||||||
2013 | 2012 | |||||||||||
(In millions) | ||||||||||||
Carrying amount of the equity component | $ | 159 | $ | 162 | ||||||||
Principal amount of the 6.00% Notes | 530 | 580 | ||||||||||
Unamortized discount(1) | (13 | ) | (25 | ) | ||||||||
Net carrying amount | $ | 517 | $ | 555 | ||||||||
Schedule of Information Related to Interest Rates and Expenses | ' | |||||||||||
2013 | 2012 | 2011 | ||||||||||
(In millions, except percentages) | ||||||||||||
Effective interest rate | 8 | % | 8 | % | 8 | % | ||||||
Interest cost related to contractual interest coupon | $ | 45 | $ | 44 | $ | 45 | ||||||
Interest cost related to amortization of the discount | $ | 10 | $ | 9 | $ | 11 | ||||||
Schedule of Future Payments on Debt and Other Obligations | ' | |||||||||||
Long Term | Secured Revolving Line of Credit | Capital | ||||||||||
Debt | Leases | |||||||||||
(Principal | ||||||||||||
only) | ||||||||||||
(In millions) | ||||||||||||
2014 | $ | — | $ | 55 | $ | 6 | ||||||
2015 | 530 | — | 6 | |||||||||
2016 | — | — | 6 | |||||||||
2017 | 500 | — | 1 | |||||||||
2018 | — | — | — | |||||||||
2019 and thereafter | 1,000 | — | — | |||||||||
Total | 2,030 | 55 | 19 | |||||||||
Less: imputed interest | — | — | 3 | |||||||||
Total | $ | 2,030 | $ | 55 | $ | 16 | ||||||
Other_Income_Expense_Net_Table
Other Income (Expense), Net (Tables) | 12 Months Ended | |||||||||||
Dec. 28, 2013 | ||||||||||||
Income Statement Related Disclosures [Abstract] | ' | |||||||||||
Other Income (Expense), Net | ' | |||||||||||
2013 | 2012 | 2011 | ||||||||||
(In millions) | ||||||||||||
GF investment impairment charge | $ | — | $ | — | $ | (209 | ) | |||||
Impairment charge on marketable securities | — | (4 | ) | — | ||||||||
Net loss on debt repurchases | (1 | ) | — | (6 | ) | |||||||
Other | (4 | ) | 10 | 16 | ||||||||
Other income (expense), net | $ | (5 | ) | $ | 6 | $ | (199 | ) | ||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 12 Months Ended | |||||||||||
Dec. 28, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Schedule of Segment Reporting Information, by Segment | ' | |||||||||||
2013 | 2012 | 2011 | ||||||||||
(In millions) | ||||||||||||
Net revenue: | ||||||||||||
Computing Solutions | $ | 3,104 | $ | 4,005 | $ | 5,002 | ||||||
Graphics and Visual Solutions | 2,193 | 1,417 | 1,565 | |||||||||
All Other | 2 | — | 1 | |||||||||
Total net revenue | $ | 5,299 | $ | 5,422 | $ | 6,568 | ||||||
Operating income (loss): | ||||||||||||
Computing Solutions | $ | (22 | ) | $ | (231 | ) | $ | 556 | ||||
Graphics and Visual Solutions | 216 | 105 | 51 | |||||||||
All Other | (91 | ) | (930 | ) | (239 | ) | ||||||
Total operating income (loss) | $ | 103 | $ | (1,056 | ) | $ | 368 | |||||
Interest income | 5 | 8 | 10 | |||||||||
Interest expense | (177 | ) | (175 | ) | (180 | ) | ||||||
Other income (expense), net | (5 | ) | 6 | (199 | ) | |||||||
Dilution gain in investee, net | — | — | 492 | |||||||||
Income (loss) from continuing operations before income taxes | $ | (74 | ) | $ | (1,217 | ) | $ | 491 | ||||
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area | ' | |||||||||||
2013 | 2012 | 2011 | ||||||||||
(In millions) | ||||||||||||
United States | $ | 801 | $ | 407 | $ | 456 | ||||||
Europe | 460 | 469 | 779 | |||||||||
China | 2,519 | 3,131 | 3,493 | |||||||||
Singapore | 610 | 856 | 1,056 | |||||||||
Japan | 710 | 305 | 445 | |||||||||
Other countries | 199 | 254 | 339 | |||||||||
Total sales to external customers | $ | 5,299 | $ | 5,422 | $ | 6,568 | ||||||
Schedule of Long-lived Assets in Individual Foreign Countries by Geographic Area | ' | |||||||||||
December 28, | December 29, | |||||||||||
2013 | 2012 | |||||||||||
(In millions) | ||||||||||||
United States | $ | 153 | $ | 417 | ||||||||
Malaysia | 66 | 66 | ||||||||||
China | 46 | 59 | ||||||||||
Singapore | 18 | 37 | ||||||||||
Other countries | 63 | 79 | ||||||||||
Total long-lived assets | $ | 346 | $ | 658 | ||||||||
StockBased_Incentive_Compensat1
Stock-Based Incentive Compensation Plans (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||
Schedule of Share-based Payment Award, Performance-based Awards, Valuation Assumptions | ' | ||||||||||||||||||||
Expected volatility | 57.46 | % | |||||||||||||||||||
Risk-free interest rate | 0.2 | % | |||||||||||||||||||
Expected dividends | — | % | |||||||||||||||||||
Expected life | 1.44 years | ||||||||||||||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ' | ||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
(In millions) | |||||||||||||||||||||
Cost of sales | $ | 5 | $ | 8 | $ | 6 | |||||||||||||||
Research and development | 48 | 52 | 46 | ||||||||||||||||||
Marketing, general, and administrative | 38 | 37 | 38 | ||||||||||||||||||
Total stock-based compensation expense, net of tax of $0 | $ | 91 | $ | 97 | $ | 90 | |||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | ' | ||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Expected volatility | 59.03 | % | 56.24 | % | 54.82 | % | |||||||||||||||
Risk-free interest rate | 0.79 | % | 0.52 | % | 1.6 | % | |||||||||||||||
Expected dividends | — | % | — | % | — | % | |||||||||||||||
Expected life (in years) | 3.83 | 3.79 | 3.75 | ||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity | ' | ||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Number | Weighted- | Number | Weighted- | Number | Weighted- | ||||||||||||||||
of Shares | Average | of Shares | Average | of Shares | Average | ||||||||||||||||
Exercise | Exercise | Exercise | |||||||||||||||||||
Price | Price | Price | |||||||||||||||||||
(In millions, except share price) | |||||||||||||||||||||
Stock options: | |||||||||||||||||||||
Outstanding at beginning of year | 38 | $ | 5.51 | 34 | $ | 7.36 | 37 | $ | 7.77 | ||||||||||||
Granted | 6 | $ | 3.63 | 17 | $ | 3.41 | 8 | $ | 7.16 | ||||||||||||
Canceled | (6 | ) | $ | 7.73 | (8 | ) | $ | 11.26 | (6 | ) | $ | 12.54 | |||||||||
Exercised | (3 | ) | $ | 1.56 | (5 | ) | $ | 2.71 | (5 | ) | $ | 3.82 | |||||||||
Outstanding at end of year | 35 | $ | 5.08 | 38 | $ | 5.51 | 34 | $ | 7.36 | ||||||||||||
Exercisable at end of year | 22 | $ | 5.62 | 22 | $ | 6.14 | 25 | $ | 7.48 | ||||||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units, Activity | ' | ||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Number | Weighted- | Number | Weighted- | Number | Weighted- | ||||||||||||||||
of Shares | Average | of Shares | Average | of Shares | Average | ||||||||||||||||
Fair Value | Fair Value | Fair Value | |||||||||||||||||||
(In millions except share price) | |||||||||||||||||||||
Unvested balance at beginning of period | 25 | $ | 6.41 | 24 | $ | 7.07 | 24 | $ | 6.5 | ||||||||||||
Granted | 28 | $ | 3.81 | 17 | $ | 5.43 | 14 | $ | 7.34 | ||||||||||||
Forfeited | (3 | ) | $ | 5.76 | (5 | ) | $ | 6.84 | (4 | ) | $ | 6.66 | |||||||||
Vested | (10 | ) | $ | 6.93 | (11 | ) | $ | 6.05 | (10 | ) | $ | 6.25 | |||||||||
Unvested balance at end of period | 40 | $ | 4.52 | 25 | $ | 6.41 | 24 | $ | 7.07 | ||||||||||||
Commitments_and_Guarantees_Tab
Commitments and Guarantees (Tables) | 12 Months Ended | |||||||
Dec. 28, 2013 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Schedule of Future Minimum Rental Payments for Operating Leases | ' | |||||||
Year | Operating | |||||||
leases | ||||||||
(In millions) | ||||||||
2014 | $ | 59 | ||||||
2015 | 51 | |||||||
2016 | 43 | |||||||
2017 | 40 | |||||||
2018 | 39 | |||||||
2019 and thereafter | 156 | |||||||
Total non-cancelable operating lease commitments | $ | 388 | ||||||
Schedule of Future Unconditional Purchase Obligations | ' | |||||||
Year | Unconditional purchase obligations | |||||||
(In millions) | ||||||||
2014 | $ | 438 | ||||||
2015 | 80 | |||||||
2016 | 39 | |||||||
2017 | 30 | |||||||
2018 | — | |||||||
2019 and thereafter | — | |||||||
Total unconditional purchase commitments | $ | 587 | ||||||
Product Warranty Disclosure | ' | |||||||
December 28, | December 29, | |||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
Beginning balance | $ | 16 | $ | 20 | ||||
New warranties issued during the period | 27 | 28 | ||||||
Settlements during the period | (25 | ) | (30 | ) | ||||
Changes in liability for pre-existing warranties during the period, including expirations | (1 | ) | (2 | ) | ||||
Ending balance | $ | 17 | $ | 16 | ||||
Restructuring_Tables
Restructuring (Tables) | 12 Months Ended | |||||||||||
Dec. 28, 2013 | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ' | |||||||||||
Schedule of Restructuring Activities and Related Liabilities | ' | |||||||||||
Severance | Other exit | Total | ||||||||||
and related | related | |||||||||||
benefits | costs | |||||||||||
(In millions) | ||||||||||||
Balance at December 31, 2011 | $ | 22 | $ | 45 | $ | 67 | ||||||
Charges | 95 | 5 | 100 | |||||||||
Cash payments | (76 | ) | (29 | ) | (105 | ) | ||||||
Non-cash charges (reversals), net | — | (4 | ) | (4 | ) | |||||||
Balance at December 29, 2012 | 41 | 17 | 58 | |||||||||
Charges (reversals), net | (5 | ) | 11 | 6 | ||||||||
Cash payments | (33 | ) | (21 | ) | (54 | ) | ||||||
Balance at December 28, 2013 | $ | 3 | $ | 7 | $ | 10 | ||||||
Summary of Each Major Type of Restructuring Cost | ' | |||||||||||
2013 | 2012 | 2011 | ||||||||||
(In millions) | ||||||||||||
Severance and benefits charges (reversals), net | $ | (5 | ) | $ | 95 | $ | 54 | |||||
Contract or program termination charges | — | — | 45 | |||||||||
Asset impairments | — | 4 | 1 | |||||||||
Facility consolidation and closure charges (reversals), net | 11 | 1 | (2 | ) | ||||||||
Total | $ | 6 | $ | 100 | $ | 98 | ||||||
Hedging_Transactions_and_Deriv1
Hedging Transactions and Derivative Financial Instruments (Tables) | 12 Months Ended | |||||||
Dec. 28, 2013 | ||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Operations | ' | |||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
Foreign Currency Forward Contracts | ||||||||
Contracts designated as cash flow hedging instruments | ||||||||
Other comprehensive income (loss) | $ | (3 | ) | $ | 2 | |||
Research and development | (2 | ) | — | |||||
Marketing, general and administrative | (1 | ) | — | |||||
Contracts not designated as hedging instruments | ||||||||
Other income (expense), net | $ | (2 | ) | $ | 1 | |||
Schedule of Derivative Instruments in Balance Sheet | ' | |||||||
December 28, | December 29, | |||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
Foreign Currency Forward Contracts | ||||||||
Contracts designated as cash flow hedging instruments | $ | (3 | ) | $ | — | |||
Contracts not designated as hedging instruments | $ | (1 | ) | $ | — | |||
Supplementary_Financial_Inform
Supplementary Financial Information (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 28, 2013 | ||||||||||||||||||||||||||||||||
Quarterly Financial Data [Abstract] | ' | |||||||||||||||||||||||||||||||
Supplementary Financial Information | ' | |||||||||||||||||||||||||||||||
(In millions, except per share amounts) | ||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Dec. 28 | Sep. 28 | Jun. 29 | Mar. 30 | Dec. 29 | Sep. 29 | Jun. 30 | Mar. 31 | |||||||||||||||||||||||||
Net revenue | $ | 1,589 | $ | 1,461 | $ | 1,161 | $ | 1,088 | $ | 1,155 | $ | 1,269 | $ | 1,413 | $ | 1,585 | ||||||||||||||||
Cost of sales (1) | 1,036 | 940 | 702 | 643 | 977 | 877 | 775 | 1,558 | ||||||||||||||||||||||||
Gross margin | 553 | 521 | 459 | 445 | 178 | 392 | 638 | 27 | ||||||||||||||||||||||||
Research and development | 293 | 288 | 308 | 312 | 313 | 328 | 345 | 368 | ||||||||||||||||||||||||
Marketing, general and administrative | 169 | 155 | 171 | 179 | 193 | 188 | 212 | 230 | ||||||||||||||||||||||||
Amortization of acquired intangible assets | 4 | 5 | 4 | 5 | 4 | 4 | 4 | 1 | ||||||||||||||||||||||||
Restructuring and other special charges (gains), net (2) | — | (22 | ) | 5 | 47 | 90 | 3 | — | 8 | |||||||||||||||||||||||
Legal settlements (4) | (48 | ) | — | — | — | — | — | — | — | |||||||||||||||||||||||
Operating income (loss) | 135 | 95 | (29 | ) | (98 | ) | (422 | ) | (131 | ) | 77 | (580 | ) | |||||||||||||||||||
Interest income | 1 | 1 | 2 | 1 | 2 | 2 | 2 | 2 | ||||||||||||||||||||||||
Interest expense | (44 | ) | (47 | ) | (42 | ) | (44 | ) | (45 | ) | (44 | ) | (43 | ) | (43 | ) | ||||||||||||||||
Other income (expense), net | (2 | ) | 2 | (2 | ) | (3 | ) | (4 | ) | 16 | (5 | ) | (1 | ) | ||||||||||||||||||
Income (loss) before income taxes | 90 | 51 | (71 | ) | (144 | ) | (469 | ) | (157 | ) | 31 | (622 | ) | |||||||||||||||||||
Provision (benefit) for income taxes (3) | 1 | 3 | 3 | 2 | 4 | — | (6 | ) | (32 | ) | ||||||||||||||||||||||
Net income (loss) | 89 | 48 | (74 | ) | (146 | ) | (473 | ) | (157 | ) | 37 | (590 | ) | |||||||||||||||||||
Net income (loss) per share | ||||||||||||||||||||||||||||||||
Basic | $ | 0.12 | $ | 0.06 | $ | (0.10 | ) | $ | (0.19 | ) | $ | (0.63 | ) | $ | (0.21 | ) | $ | 0.05 | $ | (0.80 | ) | |||||||||||
Diluted | $ | 0.12 | $ | 0.06 | $ | (0.10 | ) | $ | (0.19 | ) | $ | (0.63 | ) | $ | (0.21 | ) | $ | 0.05 | $ | (0.80 | ) | |||||||||||
Shares used in per share calculation | ||||||||||||||||||||||||||||||||
Basic | 759 | 757 | 752 | 749 | 747 | 745 | 739 | 734 | ||||||||||||||||||||||||
Diluted | 766 | 764 | 752 | 749 | 747 | 745 | 755 | 734 | ||||||||||||||||||||||||
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ' | ||||||||||||||||
Valuation and Qualifying Accounts | ' | ||||||||||||||||
Balance | Additions | Deductions(1) | Balance | ||||||||||||||
Beginning | Charged | End of | |||||||||||||||
of Period | (Reductions | Period | |||||||||||||||
Credited) | |||||||||||||||||
To Operations | |||||||||||||||||
Allowance for doubtful accounts: | |||||||||||||||||
Years ended: | |||||||||||||||||
December 31, 2011 | $ | 4 | $ | (1 | ) | $ | (1 | ) | $ | 2 | |||||||
December 29, 2012 | $ | 2 | $ | — | $ | — | $ | 2 | |||||||||
December 28, 2013 | $ | 2 | $ | (2 | ) | $ | — | $ | — | ||||||||
Significant_Accounting_Policie3
Significant Accounting Policies (Details) (Narrative) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Marketing, communications and advertising expenses | $210 | $287 | $397 |
Weighted average number of common shares, contingently issuable | 35 | ' | ' |
Stock Options, Restricted Stock and Restricted Stock Units | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share | 59 | 45 | 33 |
5.75% Convertible Senior Notes | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share | ' | 15 | 24 |
Equipment | Maximum | ' | ' | ' |
Property, plant and equipment, useful life | '6 years | ' | ' |
Equipment | Minimum | ' | ' | ' |
Property, plant and equipment, useful life | '2 years | ' | ' |
Building and Building Improvements | Maximum | ' | ' | ' |
Property, plant and equipment, useful life | '39 years | ' | ' |
Significant_Accounting_Policie4
Significant Accounting Policies (Details) (Deferred Revenue and Related Product Costs) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Millions, unless otherwise specified | ||
Deferred Revenue And Related Product Costs [Line Items] | ' | ' |
Deferred revenue | $253 | $189 |
Deferred cost of sales | -108 | -81 |
Deferred income on shipments to distributors | $145 | $108 |
Significant_Accounting_Policie5
Significant Accounting Policies (Details) (Components of Basic and Diluted Income (loss)) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Numerator—Net income (loss): | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) from continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | ($83) | ($1,183) | $495 |
Loss from discontinued operations, net of tax | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | -4 |
Net income (loss) | $89 | $48 | ($74) | ($146) | ($473) | ($157) | $37 | ($590) | ($83) | ($1,183) | $491 |
Denominator—Weighted average shares: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic | 759 | 757 | 752 | 749 | 747 | 745 | 739 | 734 | 754 | 741 | 727 |
Employee stock options, restricted stock and restricted stock units | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 15 |
Diluted | 766 | 764 | 752 | 749 | 747 | 745 | 755 | 734 | 754 | 741 | 742 |
Basic | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | ($0.11) | ($1.60) | $0.68 |
Discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | ($0.01) |
Basic net income (loss) per share | $0.12 | $0.06 | ($0.10) | ($0.19) | ($0.63) | ($0.21) | $0.05 | ($0.80) | ($0.11) | ($1.60) | $0.68 |
Diluted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | ($0.11) | ($1.60) | $0.67 |
Discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | ($0.01) |
Diluted net income (loss) per share | $0.12 | $0.06 | ($0.10) | ($0.19) | ($0.63) | ($0.21) | $0.05 | ($0.80) | ($0.11) | ($1.60) | $0.66 |
Significant_Accounting_Policie6
Significant Accounting Policies (Details) (Accumulated Other Comprehensive Income) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Unrealized gains (losses) on available-for-sale securities: | ' | ' | ' |
Beginning balance | $0 | ($1) | ' |
Unrealized gains (losses) arising during the period, net of tax effects | -1 | 1 | 5 |
Reclassification adjustment for losses realized and included in net loss, net of tax effects | 2 | 0 | -4 |
Total other comprehensive income (loss) | 1 | 1 | 1 |
Ending balance | 1 | 0 | -1 |
Unrealized gains (losses) on cash flow hedges: | ' | ' | ' |
Beginning balance | -3 | -4 | ' |
Unrealized gains (losses) arising during the period, net of tax effects | -6 | 1 | -5 |
Reclassification adjustment for losses realized and included in net loss, net of tax effects | 6 | 0 | -3 |
Total other comprehensive income (loss) | 0 | 1 | -8 |
Ending balance | -3 | -3 | -4 |
Total: | ' | ' | ' |
Beginning balance | -3 | -5 | ' |
Unrealized gains (losses) arising during the period, net of tax effects | -7 | 2 | ' |
Reclassification adjustment for losses realized and included in net loss, net of tax effects | 8 | 0 | ' |
Total other comprehensive income (loss) | 1 | 2 | -6 |
Ending balance | ($2) | ($3) | ($5) |
GLOBALFOUNDRIES_Details_Narrat
GLOBALFOUNDRIES (Details) (Narrative) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
In Millions, unless otherwise specified | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 29, 2012 | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
First Amendment to the WSA | Second Amendment to the WSA | Third Amendment to the WSA | Third Amendment to the WSA | Third Amendment to the WSA | Globalfoundries | Globalfoundries | Globalfoundries | Globalfoundries | ||||||||||||
Globalfoundries [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Date of consolidation of GF | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2-Mar-09 | ' | ' |
Date of deconsolidation of GF | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27-Dec-09 | ' | ' |
Dilution gain in investee | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $492 | ' | ' | ' | ' | ' | ' | ' | ' | $492 |
Investment in GLOBALFOUNDRIES | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 278 |
Impairment related to the GLOBALFOUNDRIES investment | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 209 | ' | ' | ' | ' | ' | ' | ' | ' | 209 |
Date of amendment to the WSA | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2-Apr-11 | 4-Mar-12 | ' | 6-Dec-12 | ' | ' | ' | ' | ' |
Termination date of the WSA | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2-Mar-24 | ' | ' |
Cash consideration for limited waiver of exclusivity to related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 425 | ' | ' | 320 | ' | ' | 320 | ' |
Cash consideration for limited waiver of exclusivity to related party, paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200 | 40 | 80 | 200 | 40 | 80 | ' |
Fair value of stock consideration for limited waiver of exclusivity to related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 278 | ' | ' | ' | ' | ' | ' | ' |
Consideration for limited waiver of exclusivity to related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 703 | ' | ' | ' | ' | ' | ' | ' |
Lower of cost or market charge | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 273 | ' | ' | ' | ' |
Cost of sales | 1,036 | 940 | 702 | 643 | 977 | 877 | 775 | 1,558 | 3,321 | 4,187 | 3,628 | ' | ' | ' | ' | ' | ' | 1,000 | 1,200 | 900 |
Research and development | $293 | $288 | $308 | $312 | $313 | $328 | $345 | $368 | $1,201 | $1,354 | $1,453 | ' | ' | ' | ' | ' | ' | $16 | $49 | $79 |
Acquisition_Details_Narrative
Acquisition (Details) (Narrative) (USD $) | 12 Months Ended | |
In Millions, except Share data, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
Business Acquisition [Line Items] | ' | ' |
Effective date of acquisition | 23-Mar-12 | ' |
Cost of acquired entity, assumed stock options and restricted shares, vested portion | ' | $19 |
Cost of acquired entity, total purchase consideration | ' | 312 |
Cost of acquired entity, cash paid | ' | 293 |
Cash acquired from acquisition | ' | 19 |
Cost of acquired entity, transaction costs | ' | 6 |
Vested stock options issued (exchanged) in business combination | ' | 1,652,000 |
Unvested stock options issued (exchanged) in business combination | ' | 4,792,000 |
Restricted stock issued (exchanged) in business combination | ' | 322,000 |
Escrow deposit disbursements related to business acquisition | ' | 29 |
Completion of in-process research and development | ' | 0 |
In Process Research and Development | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Completion of in-process research and development | ' | $5 |
Acquisition_Details_Assets_Acq
Acquisition (Details) (Assets Acquired and Liabilities Assumed based on the Estimated Fair Value of SeaMicro) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 29, 2012 | Mar. 23, 2012 | Dec. 28, 2013 | Mar. 23, 2012 | Mar. 23, 2012 | Dec. 28, 2013 | Mar. 23, 2012 | Dec. 28, 2013 | Mar. 23, 2012 |
Developed Technology | Developed Technology | In Process Research and Development | Customer Relationships | Customer Relationships | Trade Names | Trade Names | |||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost of acquired entity, cash paid | $293 | ' | ' | ' | ' | ' | ' | ' | ' |
Cost of acquired entity, assumed stock options and restricted shares, vested portion | 19 | ' | ' | ' | ' | ' | ' | ' | ' |
Cost of acquired entity, total purchase consideration | 312 | ' | ' | ' | ' | ' | ' | ' | ' |
Tangible assets acquired | ' | 24 | ' | ' | ' | ' | ' | ' | ' |
Identified intangible assets acquired | ' | ' | ' | 86 | 11 | ' | 4 | ' | 1 |
Tangible assets acquired | ' | 126 | ' | ' | ' | ' | ' | ' | ' |
Estimated useful life | ' | ' | '8 years | ' | ' | '4 years | ' | '4 years | ' |
Liabilities assumed | ' | 8 | ' | ' | ' | ' | ' | ' | ' |
Deferred tax liabilities | ' | 36 | ' | ' | ' | ' | ' | ' | ' |
Total liabilities assumed | ' | 44 | ' | ' | ' | ' | ' | ' | ' |
Goodwill | $230 | ' | ' | ' | ' | ' | ' | ' | ' |
Sale_and_Leaseback_Transaction1
Sale and Leaseback Transactions (Details) (Narrative) (USD $) | 12 Months Ended | ||||||||
In Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Sep. 28, 2013 |
Property in Austin Texas | Sale Leaseback Transactions | Sale Leaseback Transactions | Sale Leaseback Transactions | Sale Leaseback Transactions | Sale Leaseback Transactions | ||||
Property in Austin Texas | Property in Markham Canada | Property in Singapore | Property in Singapore | ||||||
Sale Leaseback Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net proceeds from sale leaseback transaction | ' | ' | ' | $10 | ' | $164 | $13 | $46 | ' |
Net (gain) loss on disposal of property, plant and equipment | -31 | -1 | 5 | 5 | -24 | -52 | 6 | 17 | ' |
Deferred gain on sale leaseback transaction | ' | ' | ' | ' | ' | ' | ' | ' | $14 |
Lease terms of property sold and leased back | ' | ' | ' | ' | ' | 'The operating lease expires in March 2025 and provides for one 10-year optional renewal. | ' | 'The initial operating lease term expires in September 2023 and provides for options to extend the lease for 4 years, at the end of the initial operating lease term, and for an additional 3.5 years thereafter. | ' |
Supplemental_Balance_Sheet_Inf2
Supplemental Balance Sheet Information (Details) (Accounts Receivable) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Millions, unless otherwise specified | ||
Accounts receivable | $832 | $632 |
Allowance for doubtful accounts | 0 | -2 |
Accounts receivable, net | $832 | $630 |
Supplemental_Balance_Sheet_Inf3
Supplemental Balance Sheet Information (Details) (Inventories) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Millions, unless otherwise specified | ||
Raw materials | $30 | $29 |
Work in process | 727 | 357 |
Finished goods | 127 | 176 |
Inventories, net | $884 | $562 |
Supplemental_Balance_Sheet_Inf4
Supplemental Balance Sheet Information (Details) (Property, Plant And Equipment) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Land and land improvements | $3 | $31 | ' |
Buildings and leasehold improvements | 246 | 591 | ' |
Equipment | 1,466 | 1,585 | ' |
Construction in progress | 18 | 11 | ' |
Property, Plant and Equipment, Gross | 1,733 | 2,218 | ' |
Accumulated depreciation and amortization | -1,387 | -1,560 | ' |
Property, plant and equipment, net | 346 | 658 | ' |
Depreciation | $139 | $179 | $217 |
Supplemental_Balance_Sheet_Inf5
Supplemental Balance Sheet Information (Details) (Other Assets) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Millions, unless otherwise specified | ||
Software technology and licenses | $280 | $155 |
Other | 106 | 92 |
Other assets | $386 | $247 |
Supplemental_Balance_Sheet_Inf6
Supplemental Balance Sheet Information (Details) (Accrued and Other Current Liabilities) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Millions, unless otherwise specified | ||
Accrued compensation and benefits | $186 | $158 |
Marketing programs and advertising expenses | 150 | 160 |
Software technology and licenses payable | 27 | 18 |
Other accrued and current liabilities | 167 | 216 |
Accrued and other current liabilities | $530 | $552 |
Goodwill_and_Acquired_Intangib2
Goodwill and Acquired Intangible Assets (Details) (Schedule of Goodwill) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
Goodwill [Line Items] | ' | ' |
Initial goodwill | ' | $2,424 |
Accumulated impairment loss | ' | -1,871 |
Goodwill, beginning balance | 553 | ' |
Goodwill adjustments | 0 | ' |
Impairment charges | 0 | ' |
Goodwill, ending balance | 553 | ' |
Computing Solutions | ' | ' |
Goodwill [Line Items] | ' | ' |
Initial goodwill | ' | 391 |
Accumulated impairment loss | ' | -161 |
Goodwill, beginning balance | 230 | ' |
Goodwill adjustments | 0 | ' |
Impairment charges | 0 | ' |
Goodwill, ending balance | 230 | ' |
Graphics and Visual Solutions | ' | ' |
Goodwill [Line Items] | ' | ' |
Initial goodwill | ' | 1,288 |
Accumulated impairment loss | ' | -965 |
Goodwill, beginning balance | 323 | ' |
Goodwill adjustments | 0 | ' |
Impairment charges | 0 | ' |
Goodwill, ending balance | 323 | ' |
All Other | ' | ' |
Goodwill [Line Items] | ' | ' |
Initial goodwill | ' | 745 |
Accumulated impairment loss | ' | -745 |
Goodwill, beginning balance | 0 | ' |
Goodwill adjustments | 0 | ' |
Impairment charges | 0 | ' |
Goodwill, ending balance | 0 | ' |
SeaMicro Acquisition | ' | ' |
Goodwill [Line Items] | ' | ' |
Initial goodwill | ' | 230 |
SeaMicro Acquisition | Computing Solutions | ' | ' |
Goodwill [Line Items] | ' | ' |
Initial goodwill | ' | 230 |
SeaMicro Acquisition | Graphics and Visual Solutions | ' | ' |
Goodwill [Line Items] | ' | ' |
Initial goodwill | ' | 0 |
SeaMicro Acquisition | All Other | ' | ' |
Goodwill [Line Items] | ' | ' |
Initial goodwill | ' | 0 |
ATI Acquisition | ' | ' |
Goodwill [Line Items] | ' | ' |
Initial goodwill | ' | 2,194 |
ATI Acquisition | Computing Solutions | ' | ' |
Goodwill [Line Items] | ' | ' |
Initial goodwill | ' | 161 |
ATI Acquisition | Graphics and Visual Solutions | ' | ' |
Goodwill [Line Items] | ' | ' |
Initial goodwill | ' | 1,288 |
ATI Acquisition | All Other | ' | ' |
Goodwill [Line Items] | ' | ' |
Initial goodwill | ' | $745 |
Goodwill_and_Acquired_Intangib3
Goodwill and Acquired Intangible Assets (Details) (Acquisition-Related Intangible Assets) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets, net, beginning of period | ' | ' | ' | $96 | ' | ' | ' | $8 | $96 | $8 | ' |
Addition due to SeaMicro acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | 102 | ' |
Completion of in-process research and development | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' |
Amortization expense | -4 | -5 | -4 | -5 | -4 | -4 | -4 | -1 | -18 | -14 | -29 |
Intangible assets, net, end of period | 78 | ' | ' | ' | 96 | ' | ' | ' | 78 | 96 | 8 |
Accumulated amortization of acquired intangible assets | 572 | ' | ' | ' | ' | ' | ' | ' | 572 | ' | ' |
Weighted-average amortization period | ' | ' | ' | ' | ' | ' | ' | ' | '4 years 11 months 10 days | ' | ' |
Developed Technology | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets, net, beginning of period | ' | ' | ' | 82 | ' | ' | ' | 0 | 82 | 0 | ' |
Addition due to SeaMicro acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | 86 | ' |
Completion of in-process research and development | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | ' |
Amortization expense | ' | ' | ' | ' | ' | ' | ' | ' | -13 | -9 | ' |
Intangible assets, net, end of period | 69 | ' | ' | ' | 82 | ' | ' | ' | 69 | 82 | ' |
Weighted-average amortization period | ' | ' | ' | ' | ' | ' | ' | ' | '6 years 0 months 20 days | ' | ' |
In Process Research and Development | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets, net, beginning of period | ' | ' | ' | 6 | ' | ' | ' | 0 | 6 | 0 | ' |
Addition due to SeaMicro acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11 | ' |
Completion of in-process research and development | ' | ' | ' | ' | ' | ' | ' | ' | ' | -5 | ' |
Amortization expense | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' |
Intangible assets, net, end of period | 6 | ' | ' | ' | 6 | ' | ' | ' | 6 | 6 | ' |
Customer Relationships | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets, net, beginning of period | ' | ' | ' | 3 | ' | ' | ' | 0 | 3 | 0 | ' |
Addition due to SeaMicro acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' |
Completion of in-process research and development | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' |
Amortization expense | ' | ' | ' | ' | ' | ' | ' | ' | -1 | -1 | ' |
Intangible assets, net, end of period | 2 | ' | ' | ' | 3 | ' | ' | ' | 2 | 3 | ' |
Weighted-average amortization period | ' | ' | ' | ' | ' | ' | ' | ' | '2 years 3 months 0 days | ' | ' |
Trademark and Trade Name | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets, net, beginning of period | ' | ' | ' | 5 | ' | ' | ' | 8 | 5 | 8 | ' |
Addition due to SeaMicro acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' |
Completion of in-process research and development | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' |
Amortization expense | ' | ' | ' | ' | ' | ' | ' | ' | -4 | -4 | ' |
Intangible assets, net, end of period | $1 | ' | ' | ' | $5 | ' | ' | ' | $1 | $5 | ' |
Weighted-average amortization period | ' | ' | ' | ' | ' | ' | ' | ' | '2 years 3 months 0 days | ' | ' |
Goodwill_and_Acquired_Intangib4
Goodwill and Acquired Intangible Assets (Details) (Estimated Future Amortization Expense) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Estimated Amortization of Acquired Intangible Assets [Line Items] | ' | ' | ' |
2014 | $13 | ' | ' |
2015 | 13 | ' | ' |
2016 | 11 | ' | ' |
2017 | 11 | ' | ' |
2018 | 11 | ' | ' |
2019 and beyond | 13 | ' | ' |
Total intangible assets subject to amortization | 72 | ' | ' |
In-process research and development | 6 | ' | ' |
Intangible assets, net | $78 | $96 | $8 |
Financial_Instruments_Details_
Financial Instruments (Details) (Narrative) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Schedule of Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain (loss) on sales of available-for-sale securities | ' | ' | ' | ' | ' | ' | ' | ' | ($2) | $0 | ' |
Proceeds from sale of available-for-sale securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6 | ' |
Impairment charge on marketable securities | ' | ' | ' | ' | ' | ' | ' | ' | 0 | -4 | ' |
Noncurrent marketable securities, at fair value | 90 | ' | ' | ' | 181 | ' | ' | ' | 90 | 181 | ' |
Other income (expense), net | -2 | 2 | -2 | -3 | -4 | 16 | -5 | -1 | -5 | 6 | -199 |
Auction rate securities sold, carrying value | ' | ' | ' | ' | ' | ' | ' | ' | 28 | ' | ' |
Long-term marketable securities stated maturities period maximum | '2 years | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' |
Money Market Funds | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Schedule of Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Available-for-sale securities pledged as collateral | 18 | ' | ' | ' | 10 | ' | ' | ' | 18 | 10 | ' |
Noncurrent marketable securities, at fair value | 2 | ' | ' | ' | 13 | ' | ' | ' | 2 | 13 | ' |
Mutual Funds | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Schedule of Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted Investments | $14 | ' | ' | ' | $14 | ' | ' | ' | $14 | $14 | ' |
Financial_Instruments_Details_1
Financial Instruments (Details) (Schedule of Available-For-Sale Securities) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Millions, unless otherwise specified | ||
Available-for-sale Securities [Line Items] | ' | ' |
Cash equivalents, at fair value | $440 | $477 |
Current marketable securities, at fair value | 228 | 453 |
Noncurrent marketable securities, at fair value | 90 | 181 |
Other assets, at fair value | 32 | 24 |
Money Market Funds | ' | ' |
Available-for-sale Securities [Line Items] | ' | ' |
Cash equivalents, at fair value | 19 | 402 |
Noncurrent marketable securities, at fair value | 2 | 13 |
Other assets, at fair value | 18 | 10 |
Commercial Paper | ' | ' |
Available-for-sale Securities [Line Items] | ' | ' |
Cash equivalents, at fair value | 421 | 75 |
Current marketable securities, at fair value | 178 | 324 |
Time Deposits | ' | ' |
Available-for-sale Securities [Line Items] | ' | ' |
Current marketable securities, at fair value | 50 | 100 |
Auction Rate Securities | ' | ' |
Available-for-sale Securities [Line Items] | ' | ' |
Current marketable securities, at fair value | 0 | 28 |
Equity Securities | ' | ' |
Available-for-sale Securities [Line Items] | ' | ' |
Current marketable securities, at fair value | 0 | 1 |
Corporate Bond Securities | ' | ' |
Available-for-sale Securities [Line Items] | ' | ' |
Noncurrent marketable securities, at fair value | 88 | 168 |
Mutual Funds | ' | ' |
Available-for-sale Securities [Line Items] | ' | ' |
Other assets, at fair value | $14 | $14 |
Financial_Instruments_Details_2
Financial Instruments (Details) (Fair Value Measurements) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Millions, unless otherwise specified | ||
Financial Instrument, At Fair Value [Line Items] | ' | ' |
Cash equivalents, at fair value | $440 | $477 |
Current marketable securities, at fair value | 228 | 453 |
Noncurrent marketable securities, at fair value | 90 | 181 |
Other assets, at fair value | 32 | 24 |
Foreign currency contracts, liabilities, at fair value | -4 | ' |
Total liabilities, at fair value | -4 | ' |
Money Market Funds | ' | ' |
Financial Instrument, At Fair Value [Line Items] | ' | ' |
Cash equivalents, at fair value | 19 | 402 |
Noncurrent marketable securities, at fair value | 2 | 13 |
Other assets, at fair value | 18 | 10 |
Available-for-sale securities pledged as collateral | 18 | 10 |
Corporate Bond Securities | ' | ' |
Financial Instrument, At Fair Value [Line Items] | ' | ' |
Noncurrent marketable securities, at fair value | 88 | 168 |
Commercial Paper | ' | ' |
Financial Instrument, At Fair Value [Line Items] | ' | ' |
Cash equivalents, at fair value | 421 | 75 |
Current marketable securities, at fair value | 178 | 324 |
Time Deposits | ' | ' |
Financial Instrument, At Fair Value [Line Items] | ' | ' |
Current marketable securities, at fair value | 50 | 100 |
Auction Rate Securities | ' | ' |
Financial Instrument, At Fair Value [Line Items] | ' | ' |
Current marketable securities, at fair value | 0 | 28 |
Equity Securities | ' | ' |
Financial Instrument, At Fair Value [Line Items] | ' | ' |
Current marketable securities, at fair value | 0 | 1 |
Mutual Funds | ' | ' |
Financial Instrument, At Fair Value [Line Items] | ' | ' |
Other assets, at fair value | 14 | 14 |
Quoted Prices In Active Markets For Identical Assets (Level 1) | ' | ' |
Financial Instrument, At Fair Value [Line Items] | ' | ' |
Cash equivalents, at fair value | 19 | 402 |
Current marketable securities, at fair value | 0 | ' |
Noncurrent marketable securities, at fair value | 2 | 13 |
Other assets, at fair value | 32 | 24 |
Total assets, at fair value | 53 | 440 |
Foreign currency contracts, liabilities, at fair value | 0 | ' |
Total liabilities, at fair value | 0 | ' |
Quoted Prices In Active Markets For Identical Assets (Level 1) | Money Market Funds | ' | ' |
Financial Instrument, At Fair Value [Line Items] | ' | ' |
Cash equivalents, at fair value | 19 | 402 |
Noncurrent marketable securities, at fair value | 2 | 13 |
Other assets, at fair value | ' | 10 |
Quoted Prices In Active Markets For Identical Assets (Level 1) | Corporate Bond Securities | ' | ' |
Financial Instrument, At Fair Value [Line Items] | ' | ' |
Noncurrent marketable securities, at fair value | 0 | 0 |
Quoted Prices In Active Markets For Identical Assets (Level 1) | Commercial Paper | ' | ' |
Financial Instrument, 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 Instrument, At Fair Value [Line Items] | ' | ' |
Current marketable securities, at fair value | 0 | 0 |
Quoted Prices In Active Markets For Identical Assets (Level 1) | Auction Rate Securities | ' | ' |
Financial Instrument, At Fair Value [Line Items] | ' | ' |
Current marketable securities, at fair value | ' | 0 |
Quoted Prices In Active Markets For Identical Assets (Level 1) | Mutual Funds | ' | ' |
Financial Instrument, At Fair Value [Line Items] | ' | ' |
Other assets, at fair value | 14 | ' |
Significant Other Observable Inputs (Level 2) | ' | ' |
Financial Instrument, At Fair Value [Line Items] | ' | ' |
Cash equivalents, at fair value | 421 | 75 |
Current marketable securities, at fair value | 228 | ' |
Noncurrent marketable securities, at fair value | 88 | 168 |
Other assets, at fair value | 0 | 0 |
Total assets, at fair value | 737 | 667 |
Foreign currency contracts, liabilities, at fair value | -4 | ' |
Total liabilities, at fair value | -4 | ' |
Significant Other Observable Inputs (Level 2) | Money Market Funds | ' | ' |
Financial Instrument, At Fair Value [Line Items] | ' | ' |
Cash equivalents, at fair value | 0 | 0 |
Noncurrent marketable securities, at fair value | 0 | 0 |
Other assets, at fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Corporate Bond Securities | ' | ' |
Financial Instrument, At Fair Value [Line Items] | ' | ' |
Noncurrent marketable securities, at fair value | 88 | 168 |
Significant Other Observable Inputs (Level 2) | Commercial Paper | ' | ' |
Financial Instrument, At Fair Value [Line Items] | ' | ' |
Cash equivalents, at fair value | 421 | 75 |
Current marketable securities, at fair value | 178 | 324 |
Significant Other Observable Inputs (Level 2) | Time Deposits | ' | ' |
Financial Instrument, At Fair Value [Line Items] | ' | ' |
Current marketable securities, at fair value | 50 | 100 |
Significant Other Observable Inputs (Level 2) | Auction Rate Securities | ' | ' |
Financial Instrument, At Fair Value [Line Items] | ' | ' |
Current marketable securities, at fair value | ' | 0 |
Significant Other Observable Inputs (Level 2) | Mutual Funds | ' | ' |
Financial Instrument, At Fair Value [Line Items] | ' | ' |
Other assets, at fair value | 0 | ' |
Significant Unobservable Inputs (Level 3) | ' | ' |
Financial Instrument, At Fair Value [Line Items] | ' | ' |
Cash equivalents, at fair value | 0 | 0 |
Current marketable securities, at fair value | 0 | ' |
Noncurrent marketable securities, at fair value | 0 | 0 |
Other assets, at fair value | 0 | 0 |
Total assets, at fair value | 0 | 28 |
Foreign currency contracts, liabilities, at fair value | 0 | ' |
Total liabilities, at fair value | 0 | ' |
Significant Unobservable Inputs (Level 3) | Money Market Funds | ' | ' |
Financial Instrument, At Fair Value [Line Items] | ' | ' |
Cash equivalents, at fair value | 0 | 0 |
Noncurrent marketable securities, at fair value | 0 | 0 |
Other assets, at fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Corporate Bond Securities | ' | ' |
Financial Instrument, At Fair Value [Line Items] | ' | ' |
Noncurrent marketable securities, at fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Commercial Paper | ' | ' |
Financial Instrument, 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 Instrument, At Fair Value [Line Items] | ' | ' |
Current marketable securities, at fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Auction Rate Securities | ' | ' |
Financial Instrument, At Fair Value [Line Items] | ' | ' |
Current marketable securities, at fair value | ' | 28 |
Significant Unobservable Inputs (Level 3) | Mutual Funds | ' | ' |
Financial Instrument, At Fair Value [Line Items] | ' | ' |
Other assets, at fair value | $0 | ' |
Financial_Instruments_Details_3
Financial Instruments (Details) (Roll-forward of Level 3 Financial Assets) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Beginning balance | $28 | $38 |
Redemptions at par | -26 | -6 |
Losses included in net loss | -2 | 0 |
Change in fair value included in net loss | 0 | -4 |
Ending balance | $0 | $28 |
Financial_Instruments_Details_4
Financial Instruments (Details) (Quantitative Information about Level 3 Fair Value Measurements) | Dec. 29, 2012 |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Discount rate for periodic interest payment | 0.84% |
Discount rate for principle repayment | 1.31% |
Liquidity discount | 0.90% |
Maximum | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Credit discounts | 12.00% |
Estimated life of available-for-sale securities | '20 years |
Minimum | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Credit discounts | 2.00% |
Estimated life of available-for-sale securities | '17 years |
Financial_Instruments_Details_5
Financial Instruments (Details) (Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments Not Recorded at Fair Value) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Millions, unless otherwise specified | ||
Carrying Amount | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Short-term debt (excluding capital leases) | $55 | $0 |
Long-term debt (excluding capital leases) | 1,986 | 2,019 |
Estimate Fair Value | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Short-term debt (excluding capital leases) | 55 | 0 |
Long-term debt (excluding capital leases) | $2,132 | $1,837 |
Concentrations_of_Credit_and_O1
Concentrations of Credit and Operation Risk (Details) (Narrative) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Millions, unless otherwise specified | ||
Concentration Risk [Line Items] | ' | ' |
Number of concentrated customers accounted in consolidated accounts receivable | 3 | 3 |
Foreign currency contracts, liabilities, at fair value | $4 | ' |
Top Customer One | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Percentage of accounts receivable | 21.00% | 22.00% |
Top Customer Two | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Percentage of accounts receivable | 18.00% | 16.00% |
Top Customer Three | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Percentage of accounts receivable | 17.00% | 14.00% |
Income_Taxes_Details_Narrative
Income Taxes (Details) (Narrative) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Increase (decrease) in valuation allowance | ($26) | $423 | ($245) |
Deferred tax assets related to excess stock option deduction | 191 | 192 | ' |
Deferred tax assets related to deductible discount for 6.00% Convertible Senior Notes due 2015 | 10 | 10 | ' |
Cumulative undistributed earnings of foreign subsidiaries | 354 | ' | ' |
Cumulative undistributed earnings, additional income taxes | 124 | ' | ' |
Income tax holiday, aggregate dollar amount | 1 | 11 | 9 |
Income tax holiday, income tax benefits per share | $0.01 | $0.02 | $0.01 |
Unrecognized tax benefits that would impact effective tax rate | 3 | 2 | 4 |
Unrecognized tax benefits, interest on income taxes accrued | 0 | 2 | 2 |
Unrecognized tax benefits, income tax penalties accrued | 0 | 0 | 0 |
Unrecognized tax benefits, interest on income taxes expense | -2 | 0 | -2 |
Unrecognized tax benefits, income tax penalties expense | 0 | 0 | -1 |
Estimated increase (decrease) in unrecognized tax benefits within 12 months | ($31) | ' | ' |
Income_Taxes_Details_Schedule_
Income Taxes (Details) (Schedule of Provision (Benefit) for Income Taxes) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Current: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
U.S. Federal | ' | ' | ' | ' | ' | ' | ' | ' | ($2) | $0 | ($3) |
U.S. State and Local | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 1 |
Foreign National and Local | ' | ' | ' | ' | ' | ' | ' | ' | 10 | 6 | 4 |
Total | ' | ' | ' | ' | ' | ' | ' | ' | 8 | 6 | 2 |
Deferred: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
U.S. Federal | ' | ' | ' | ' | ' | ' | ' | ' | 3 | -37 | 0 |
Foreign National and Local | ' | ' | ' | ' | ' | ' | ' | ' | -2 | -3 | -6 |
Total | ' | ' | ' | ' | ' | ' | ' | ' | 1 | -40 | -6 |
Provision (benefit) for income taxes | $1 | $3 | $3 | $2 | $4 | $0 | ($6) | ($32) | $9 | ($34) | ($4) |
Income_Taxes_Details_Schedule_1
Income Taxes (Details) (Schedule of Income (Loss) before Income Tax) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Income (Loss) before Taxes, Domestic and Foreign [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
U.S. | ' | ' | ' | ' | ' | ' | ' | ' | ($397) | ($1,242) | $318 |
Foreign | ' | ' | ' | ' | ' | ' | ' | ' | 323 | 25 | 173 |
Income (loss) from continuing operations before income taxes | $90 | $51 | ($71) | ($144) | ($469) | ($157) | $31 | ($622) | ($74) | ($1,217) | $491 |
Income_Taxes_Details_Schedule_2
Income Taxes (Details) (Schedule of Deferred Tax Assets and Liabilities) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Millions, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Net operating loss carryovers | $1,701 | $1,455 |
Deferred distributor income | 49 | 55 |
Inventory valuation | 32 | 53 |
Accrued expenses not currently deductible | 113 | 118 |
Acquired intangibles | 343 | 385 |
Tax deductible goodwill | 271 | 323 |
Federal and state tax credit carryovers | 321 | 395 |
Foreign capitalized research and development costs | 22 | 36 |
Foreign research and development ITC credits | 305 | 316 |
Discount of convertible notes | 65 | 40 |
Other | 217 | 291 |
Total deferred tax assets | 3,439 | 3,467 |
Valuation allowance | -3,375 | -3,401 |
Total deferred tax assets, net of valuation allowance | 64 | 66 |
Deferred tax liabilities: | ' | ' |
Acquired intangibles | -28 | -33 |
Other | -17 | -16 |
Total deferred tax liabilities | -45 | -49 |
Deferred tax assets, net | ' | ' |
Net deferred tax assets | $19 | $17 |
Income_Taxes_Details_Schedule_3
Income Taxes (Details) (Schedule of Deferred Tax Assets and Liabilities, Current and Noncurrent) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Millions, unless otherwise specified | ||
Deferred Tax Assets and Liabilities, Current and Noncurrent [Line Items] | ' | ' |
Current deferred tax assets | $2 | $1 |
Non-current deferred tax assets | 18 | 16 |
Current deferred tax liabilities | -1 | 0 |
Net deferred tax assets | $19 | $17 |
Income_Taxes_Details_Summary_o
Income Taxes (Details) (Summary of Tax Attribute Carryforwards) (USD $) | 12 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | ||||||||||||||||
In Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 28, 2013 | Mar. 30, 2013 | Mar. 30, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Mar. 30, 2013 | Mar. 30, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Mar. 30, 2013 | Mar. 30, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Mar. 30, 2013 | Mar. 30, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Mar. 30, 2013 | Mar. 30, 2013 | Dec. 28, 2013 |
US-net operating loss carryovers | US-net operating loss carryovers | US-net operating loss carryovers | US-net operating loss carryovers | US-credit carryovers | US-credit carryovers | US-credit carryovers | US-credit carryovers | Canada-net operating loss carryovers | Canada-net operating loss carryovers | Canada-net operating loss carryovers | Canada-net operating loss carryovers | Canada-credit carryovers | Canada-credit carryovers | Canada-credit carryovers | Canada-credit carryovers | Canada-R&D pools | Canada-R&D pools | Barbados-net operating loss carryovers | Barbados-net operating loss carryovers | Barbados-net operating loss carryovers | Other foreign net operating loss carryovers | |
Federal | State/Provincial | From | To | Federal | State/Provincial | From | To | Federal | State/Provincial | From | To | Federal | State/Provincial | From | To | Federal | State/Provincial | Federal | From | To | Federal | |
Tax Attribute Carryforwards [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating loss carryforwards, amount | $4,598 | $269 | ' | ' | ' | ' | ' | ' | $355 | $355 | ' | ' | ' | ' | ' | ' | ' | ' | $287 | ' | ' | $8 |
Operating loss carryforwards, expiration dates | ' | ' | 1-Jan-18 | 31-Dec-33 | ' | ' | ' | ' | ' | ' | 1-Jan-25 | 31-Dec-28 | ' | ' | ' | ' | ' | ' | ' | 1-Jan-14 | 31-Dec-17 | ' |
Operating loss carryforwards, limitations on use | 'Utilization of $17 million of the Company’s U.S. federal net operating loss carryforwards are subject to annual limitations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax credit carryforward, amount | ' | ' | ' | ' | $399 | $188 | ' | ' | ' | ' | ' | ' | $387 | $34 | ' | ' | $82 | $82 | ' | ' | ' | ' |
Tax credit carryforward, expiration date | ' | ' | ' | ' | ' | ' | 1-Jan-18 | 31-Dec-33 | ' | ' | ' | ' | ' | ' | 1-Jan-21 | 31-Dec-33 | ' | ' | ' | ' | ' | ' |
Income_Taxes_Details_Schedule_4
Income Taxes (Details) (Schedule of Effective Income Tax Rate Reconciliation) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Schedule of Effective Income Tax Rate Reconciliation [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Statutory federal income tax provision (benefit) at 35% rate | ' | ' | ' | ' | ' | ' | ' | ' | ($26) | ($426) | $172 |
State taxes, net of federal benefit | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 1 | 1 |
Foreign income at other than U.S. rates | ' | ' | ' | ' | ' | ' | ' | ' | 15 | -13 | -2 |
US valuation allowance utilized | ' | ' | ' | ' | ' | ' | ' | ' | 22 | 406 | -171 |
Credit monetization | ' | ' | ' | ' | ' | ' | ' | ' | -3 | -2 | -4 |
Provision (benefit) for income taxes | $1 | $3 | $3 | $2 | $4 | $0 | ($6) | ($32) | $9 | ($34) | ($4) |
Income_Taxes_Details_Schedule_5
Income Taxes (Details) (Schedule of Gross Unrecognized Tax Benefits) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Schedule of Gross Unrecognized Tax Benefits [Line Items] | ' | ' | ' |
Unrecognized tax benefits, beginning | $56 | $69 | $42 |
Increases for tax positions taken in prior years | 1 | 3 | 28 |
Decreases for tax positions taken in prior years | -2 | -4 | -4 |
Increases for tax positions taken in the current year | 4 | 3 | 8 |
Decreases for settlements with taxing authorities | -7 | -15 | -5 |
Unrecognized tax benefits, ending | $52 | $56 | $69 |
Debt_and_Other_Obligations_Det
Debt and Other Obligations (Details) (Narrative) (USD $) | 12 Months Ended | |||||
Dec. 27, 2014 | Dec. 28, 2013 | Dec. 31, 2011 | Dec. 27, 2008 | Dec. 29, 2012 | Mar. 28, 2009 | |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' |
Long-term debt, gross | ' | $2,030,000,000 | ' | ' | ' | ' |
Secured revolving line of credit, outstanding balance | ' | ' | ' | ' | 0 | ' |
Capital lease obligations | ' | 16,000,000 | ' | ' | 23,000,000 | ' |
Capital leased assets, gross | ' | 23,000,000 | ' | ' | 23,000,000 | ' |
Capital leased assets, accumulated depreciation | ' | -16,000,000 | ' | ' | -14,000,000 | ' |
Secured Revolving Line of Credit | ' | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' |
Secured revolving line of credit, maximum borrowing capacity | ' | 500,000,000 | ' | ' | ' | ' |
Letters of credit, maximum borrowing capacity | ' | 75,000,000 | ' | ' | ' | ' |
Secured revolving line of credit, borrowing base description | ' | 'Borrowings under the Secured Revolving Line of Credit are limited to up to 85% of eligible account receivable minus certain reserves. | ' | ' | ' | ' |
Secured revolving line of credit, interest rate description | ' | 'per annum equal to (a) London Interbank Offered Rate (LIBOR) plus an applicable margin ranging from 2.00% to 2.75%, or (b) (i) the greater of (x) the Agent’s prime rate, (y) the federal funds rate as published by the Federal Reserve Bank of New York plus 0.50%, and (z) LIBOR for a one-month period plus 1.00%, plus (ii) an applicable margin ranging from 1.00% to 1.75%. | ' | ' | ' | ' |
Secured revolving line of credit, outstanding balance | ' | 55,000,000 | ' | ' | ' | ' |
Secured revolving line of credit, remaining borrowing capacity | ' | 445,000,000 | ' | ' | ' | ' |
6.00% Convertible Senior Notes Due 2015 | ' | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' |
Principal amount, at time of issuance | ' | 2,200,000,000 | ' | ' | ' | ' |
Issuance date | ' | 27-Apr-07 | ' | ' | ' | ' |
Maturity date | ' | 1-May-15 | ' | ' | ' | ' |
Debt instrument, increase (decrease), net | -64,000,000 | -50,000,000 | -1,600,000,000 | ' | ' | ' |
Repayments of debt | ' | 53,000,000 | ' | 1,400,000,000 | ' | ' |
Repayments of debt, convertible, allocation to equity component | ' | 3,000,000 | ' | ' | ' | ' |
Carrying amount of equity component | ' | 159,000,000 | ' | ' | 162,000,000 | 259,000,000 |
Long-term debt, gross | ' | 530,000,000 | ' | ' | 580,000,000 | ' |
Debt discount | ' | -13,000,000 | ' | ' | -25,000,000 | ' |
Long-term debt, net of discount | ' | 517,000,000 | ' | ' | 555,000,000 | ' |
Convertible debt, conversion ratio, number of shares | ' | 35.6125 | ' | ' | ' | ' |
Convertible debt, conversion ratio, denomination value | ' | 1,000 | ' | ' | ' | ' |
Convertible debt, conversion price per share | ' | $28.08 | ' | ' | ' | ' |
Convertible debt, terms of conversion feature | ' | 'This initial conversion price represents a premium of 100% relative to the last reported sale price of the Company’s common stock on April 23, 2007 (the trading date preceding the date of pricing of the 6.00% Notes) of $14.04 per share. | ' | ' | ' | ' |
Convertible debt, remaining discount amortization period | ' | '16 months | ' | ' | ' | ' |
8.125% Senior Notes Due 2017 | ' | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' |
Principal amount, at time of issuance | ' | 500,000,000 | ' | ' | ' | ' |
Issuance date | ' | 30-Nov-09 | ' | ' | ' | ' |
Maturity date | ' | 15-Dec-17 | ' | ' | ' | ' |
Long-term debt, gross | ' | 500,000,000 | ' | ' | ' | ' |
Debt discount | ' | -30,000,000 | ' | ' | ' | ' |
Long-term debt, net of discount | ' | 470,000,000 | ' | ' | 464,000,000 | ' |
Long-term debt, redemption terms | ' | 'As of December 15, 2013, the Company may redeem all or part of the 8.125% Notes at any time at specified redemption prices, plus accrued and unpaid interest. | ' | ' | ' | ' |
Percentage of repurchase price over to principal amount | ' | 101.00% | ' | ' | ' | ' |
7.75% Senior Notes Due 2020 | ' | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' |
Principal amount, at time of issuance | ' | 500,000,000 | ' | ' | ' | ' |
Issuance date | ' | 4-Aug-10 | ' | ' | ' | ' |
Maturity date | ' | 1-Aug-20 | ' | ' | ' | ' |
Long-term debt, net of discount | ' | 500,000,000 | ' | ' | 500,000,000 | ' |
Long-term debt, redemption terms | ' | 'Prior to August 1, 2015, the Company may redeem some or all of the 7.75% Notes at a price equal to 100% of the principal amount, plus accrued and unpaid interest and a “make whole†premium (as defined in the 7.75% Indenture). From August 1, 2015, the Company may redeem the 7.75% Notes at specified redemption prices, plus accrued and unpaid interest. | ' | ' | ' | ' |
Percentage of repurchase price over to principal amount | ' | 101.00% | ' | ' | ' | ' |
7.50% Senior Notes due 2022 | ' | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' |
Principal amount, at time of issuance | ' | 500,000,000 | ' | ' | ' | ' |
Issuance date | ' | 15-Aug-12 | ' | ' | ' | ' |
Maturity date | ' | 15-Aug-22 | ' | ' | ' | ' |
Long-term debt, net of discount | ' | $500,000,000 | ' | ' | $500,000,000 | ' |
Long-term debt, redemption terms | ' | 'At any time (which may be more than once) before August 15, 2015, the Company can redeem up to 35% of the aggregate principal amount of the 7.50% Notes within 90 days of the closing of an equity offering with the net proceeds thereof at a redemption price not greater than 107.5% of the principal amount thereof, together with accrued and unpaid interest to but excluding the date of redemption. Prior to August 15, 2022, the Company may redeem some or all of the 7.50% Notes at a price equal to 100% of the principal amount, plus accrued and unpaid interest and a “make whole†premium (as defined in the 7.50% Indenture). | ' | ' | ' | ' |
Percentage of repurchase price over to principal amount | ' | 101.00% | ' | ' | ' | ' |
Debt_and_Other_Obligations_Det1
Debt and Other Obligations (Details) (Summary of Debt and Other Obligations) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Secured revolving line of credit, outstanding balance | ' | $0 |
Capital lease obligations | 16 | 23 |
Long-term debt and capital lease obligation including current portion | 2,058 | 2,042 |
Current portion of long-term debt and capital lease obligations | 60 | 5 |
Long-term debt and capital lease obligations, less current portion | 1,998 | 2,037 |
6.00% Convertible Senior Notes Due 2015 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt, net of discount | 517 | 555 |
8.125% Senior Notes Due 2017 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt, net of discount | 470 | 464 |
7.75% Senior Notes Due 2020 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt, net of discount | 500 | 500 |
7.50% Senior Notes due 2022 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt, net of discount | 500 | 500 |
Secured Revolving Line of Credit | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Secured revolving line of credit, outstanding balance | $55 | ' |
Debt_and_Other_Obligations_Det2
Debt and Other Obligations (Details) (Information related to Interest Rate and Expense) (6.00% Convertible Senior Notes Due 2015, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
6.00% Convertible Senior Notes Due 2015 | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Effective interest rate | 8.00% | 8.00% | 8.00% |
Interest cost related to contractual interest coupon | $45 | $44 | $45 |
Interest cost related to amortization of the discount | $10 | $9 | $11 |
Debt_and_Other_Obligations_Det3
Debt and Other Obligations (Details) (Future Payments on Debt and Other Obligations) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Millions, unless otherwise specified | ||
Long-term Debt, Future Payments | ' | ' |
Long-term debt (principal only), 2014 | $0 | ' |
Long-term debt (principal only), 2015 | 530 | ' |
Long-term debt (principal only), 2016 | 0 | ' |
Long-term debt (principal only), 2017 | 500 | ' |
Long-term debt (principal only), 2018 | 0 | ' |
Long-term debt (principal only), 2019 and thereafter | 1,000 | ' |
Long-term debt, gross | 2,030 | ' |
Line of Credit Facility, Future Payments | ' | ' |
Line of Credit Facility, Repayments, 2014 | 55 | ' |
Line of Credit Facility, Gross | 55 | ' |
Capital Lease Obligations, Future Payments | ' | ' |
Capital leases, 2014 | 6 | ' |
Capital leases, 2015 | 6 | ' |
Capital leases, 2016 | 6 | ' |
Capital leases, 2017 | 1 | ' |
Capital leases, 2018 | 0 | ' |
Capital leases, 2019 and thereafter | 0 | ' |
Capital Leases, total | 19 | ' |
Less: amount representing interest | 3 | ' |
Capital lease obligations | $16 | $23 |
Other_Income_Expense_Net_Detai
Other Income (Expense), Net (Details) (Other Income (Expense), Net) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Other Income (Expense), Net [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
GF investment impairment charge | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | ($209) |
Impairment charge on marketable securities | ' | ' | ' | ' | ' | ' | ' | ' | 0 | -4 | 0 |
Net gain (loss) on debt repurchases | ' | ' | ' | ' | ' | ' | ' | ' | -1 | 0 | -6 |
Other | ' | ' | ' | ' | ' | ' | ' | ' | -4 | 10 | 16 |
Other income (expense), net | ($2) | $2 | ($2) | ($3) | ($4) | $16 | ($5) | ($1) | ($5) | $6 | ($199) |
Segment_Reporting_Details_Summ
Segment Reporting (Details) (Summary of Operations by Segment) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | $1,589 | $1,461 | $1,161 | $1,088 | $1,155 | $1,269 | $1,413 | $1,585 | $5,299 | $5,422 | $6,568 |
Operating income (loss) | 135 | 95 | -29 | -98 | -422 | -131 | 77 | -580 | 103 | -1,056 | 368 |
Interest income | 1 | 1 | 2 | 1 | 2 | 2 | 2 | 2 | 5 | 8 | 10 |
Interest expense | -44 | -47 | -42 | -44 | -45 | -44 | -43 | -43 | -177 | -175 | -180 |
Other income (expense), net | -2 | 2 | -2 | -3 | -4 | 16 | -5 | -1 | -5 | 6 | -199 |
Dilution gain in investee | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 492 |
Income (loss) from continuing operations before income taxes | 90 | 51 | -71 | -144 | -469 | -157 | 31 | -622 | -74 | -1,217 | 491 |
Computing Solutions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | ' | ' | ' | ' | 3,104 | 4,005 | 5,002 |
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -22 | -231 | 556 |
Graphics and Visual Solutions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | ' | ' | ' | ' | 2,193 | 1,417 | 1,565 |
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 216 | 105 | 51 |
All Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 0 | 1 |
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ($91) | ($930) | ($239) |
Segment_Reporting_Details_Sale
Segment Reporting (Details) (Sales by Country) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | $1,589 | $1,461 | $1,161 | $1,088 | $1,155 | $1,269 | $1,413 | $1,585 | $5,299 | $5,422 | $6,568 |
Top Customer One | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Customer accounted for more than 10% of revenue | ' | ' | ' | ' | ' | ' | ' | ' | 17.00% | 22.00% | 22.00% |
Top Customer Two | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Customer accounted for more than 10% of revenue | ' | ' | ' | ' | ' | ' | ' | ' | 11.00% | ' | ' |
Top Customer Three | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Customer accounted for more than 10% of revenue | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' |
United States | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | ' | ' | ' | ' | 801 | 407 | 456 |
Europe | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | ' | ' | ' | ' | 460 | 469 | 779 |
China | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | ' | ' | ' | ' | 2,519 | 3,131 | 3,493 |
Singapore | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | ' | ' | ' | ' | 610 | 856 | 1,056 |
Japan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | ' | ' | ' | ' | 710 | 305 | 445 |
Other Countries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | ' | ' | ' | ' | $199 | $254 | $339 |
Segment_Reporting_Details_Long
Segment Reporting (Details) (Long-lived Assets by Geographic Area) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Millions, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ' | ' |
Property, plant and equipment, net | $346 | $658 |
United States | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property, plant and equipment, net | 153 | 417 |
Malaysia | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property, plant and equipment, net | 66 | 66 |
China | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property, plant and equipment, net | 46 | 59 |
Singapore | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property, plant and equipment, net | 18 | 37 |
Other Countries | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property, plant and equipment, net | $63 | $79 |
StockBased_Incentive_Compensat2
Stock-Based Incentive Compensation Plans (Details) (Narrative) (USD $) | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Dec. 25, 2010 | Mar. 30, 2013 | Mar. 30, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Dec. 25, 2010 | Mar. 30, 2013 | Dec. 28, 2013 | Dec. 28, 2013 |
In Millions, except Share data, unless otherwise specified | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Restricted Stock and Restricted Stock Units | Restricted Stock and Restricted Stock Units | Restricted Stock and Restricted Stock Units | Restricted Stock and Restricted Stock Units | Restricted Stock and Restricted Stock Units | Restricted Stock and Restricted Stock Units | Restricted Stock and Restricted Stock Units | |
Unvested, Issued upon SeaMicro Acquisition | Vested, Issued upon SeaMicro Acquisition | Market-based | Unvested, Issued upon SeaMicro Acquisition | Performance-based | Market-based | ||||||||||
Number of shares available for future grants | 5,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares reserved for future issuance | 76,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options, shares outstanding | ' | 35,000,000 | 38,000,000 | 34,000,000 | 37,000,000 | ' | ' | 739,000 | ' | ' | ' | ' | ' | ' | ' |
Stock options, shares outstanding, weighted average remaining contractual life | ' | '4 years 3 months 0 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options, shares outstanding, aggregate intrinsic value | ' | $18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options, shares exercisable, weighted average remaining contractual life | ' | '3 years 2 months 12 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options, shares exercisable, aggregate intrinsic value | ' | 13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options, shares granted | ' | 6,000,000 | 17,000,000 | 8,000,000 | ' | 4,792,000 | 1,652,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options, shares granted, weighted average estimated grant date fair value per share | ' | $1.52 | $2.12 | $2.85 | ' | $6.60 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options, shares exercised, total intrinsic value | ' | 5 | 18 | 21 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate estimated grant-date fair value of outstanding options units | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.8 |
Aggregate estimated grant-date fair value of non-vested restricted stock units | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' |
Restricted stock units, shares purchased, weighted average price per share | ' | ' | ' | ' | ' | ' | ' | ' | $0 | ' | ' | ' | ' | ' | ' |
Restricted stock units, shares nonvested | ' | ' | ' | ' | ' | ' | ' | ' | 40,000,000 | 25,000,000 | 24,000,000 | 24,000,000 | ' | ' | 1,693,000 |
Restricted stock units, shares granted | ' | ' | ' | ' | ' | ' | ' | ' | 28,000,000 | 17,000,000 | 14,000,000 | ' | 322,000 | 2,450,000 | ' |
Restricted stock units, shares granted, weighted average grant date fair value | ' | ' | ' | ' | ' | ' | ' | ' | $3.81 | $5.43 | $7.34 | ' | $4.03 | $4.07 | ' |
Restricted stock units, shares vested, total fair value | ' | ' | ' | ' | ' | ' | ' | ' | 36 | ' | 60 | 74 | ' | ' | ' |
Restricted stock units, share-based compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | 68 | ' | 77 | 73 | ' | ' | ' |
Stock options, total unrecognized compensation expense, net of estimated forfeitures | ' | 26 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted stock units, total unrecognized compensation expense, net of estimated forfeitures | ' | ' | ' | ' | ' | ' | ' | ' | $112 | ' | ' | ' | ' | ' | ' |
Weighted average remaining contractual term | ' | '1 year 10 months 25 days | ' | ' | ' | ' | ' | ' | '2 years 0 months 12 days | ' | ' | ' | ' | ' | ' |
StockBased_Incentive_Compensat3
Stock-Based Incentive Compensation Plans (Details) (Weighted Average Valuation Assumptions for Performance-based Awards) (Restricted Stock and Restricted Stock Units, Performance-based) | 12 Months Ended |
Dec. 28, 2013 | |
Restricted Stock and Restricted Stock Units | Performance-based | ' |
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 | '1 year 5 months 10 days |
StockBased_Incentive_Compensat4
Stock-Based Incentive Compensation Plans (Details) (Share-based Compensation, Allocation of Recognized Period Costs) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Allocated share-based compensation expense | $91 | $97 | $90 |
Cost of Sales | ' | ' | ' |
Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Allocated share-based compensation expense | 5 | 8 | 6 |
Research and Development Expense | ' | ' | ' |
Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Allocated share-based compensation expense | 48 | 52 | 46 |
Selling, General and Administrative Expenses | ' | ' | ' |
Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Allocated share-based compensation expense | $38 | $37 | $38 |
StockBased_Incentive_Compensat5
Stock-Based Incentive Compensation Plans (Details) (Weighted Average Valuation Assumptions for Stock Options) (Stock Options) | 12 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Stock Options | ' | ' | ' |
Stock Options, Valuation Assumptions [Line Items] | ' | ' | ' |
Expected volatility | 59.03% | 56.24% | 54.82% |
Risk-free interest rate | 0.79% | 0.52% | 1.60% |
Expected dividends | 0.00% | 0.00% | 0.00% |
Expected life | '3 years 10 months 0 days | '3 years 9 months 15 days | '3 years 8 months 30 days |
StockBased_Incentive_Compensat6
Stock-Based Incentive Compensation Plans (Details) (Stock Option Activities) (Stock Options, USD $) | 12 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Stock Options | ' | ' | ' |
Number of Options [Roll Forward] | ' | ' | ' |
Stock options, shares outstanding at beginning of year | 38,000,000 | 34,000,000 | 37,000,000 |
Stock options, shares granted | 6,000,000 | 17,000,000 | 8,000,000 |
Stock options, shares cancelled | -6,000,000 | -8,000,000 | -6,000,000 |
Stock options, shares exercised | -3,000,000 | -5,000,000 | -5,000,000 |
Stock options, shares outstanding at end of year | 35,000,000 | 38,000,000 | 34,000,000 |
Stock options, shares exercisable at end of year | 22,000,000 | 22,000,000 | 25,000,000 |
Weighted Average Exercise Price [Roll Forward] | ' | ' | ' |
Stock options, shares outstanding at beginning of year, weighted average exercise price | $5.51 | $7.36 | $7.77 |
Stock options, shares granted, weighted average exercise price | $3.63 | $3.41 | $7.16 |
Stock options, shares cancelled, weighted average exercise price | $7.73 | $11.26 | $12.54 |
Stock options, shares exercised, weighted average exercise price | $1.56 | $2.71 | $3.82 |
Stock options, shares outstanding at end of year, weighted average exercise price | $5.08 | $5.51 | $7.36 |
Stock options, shares exercisable at end of year, weighted average exercise price | $5.62 | $6.14 | $7.48 |
StockBased_Incentive_Compensat7
Stock-Based Incentive Compensation Plans (Details) (Restricted Stock Units Activities) (Restricted Stock and Restricted Stock Units, USD $) | 12 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Restricted Stock and Restricted Stock Units | ' | ' | ' |
Number of Restricted Stock and Restricted Stock Units [Roll Forward] | ' | ' | ' |
Restricted stock units, shares nonvested at beginning of period | 25,000,000 | 24,000,000 | 24,000,000 |
Restricted stock units, shares granted | 28,000,000 | 17,000,000 | 14,000,000 |
Restricted stock units, shares forfeited | -3,000,000 | -5,000,000 | -4,000,000 |
Restricted stock units, shares vested | -10,000,000 | -11,000,000 | -10,000,000 |
Restricted stock units, shares nonvested at end of period | 40,000,000 | 25,000,000 | 24,000,000 |
Weighted Average Grant Date Fair Value [Roll Forward] | ' | ' | ' |
Restricted stock units, shares nonvested at beginning of period, weighted average grant date fair value | $6.41 | $7.07 | $6.50 |
Restricted stock units, shares granted, weighted average grant date fair value | $3.81 | $5.43 | $7.34 |
Restricted stock units, shares forfeited, weighted average grant date fair value | $5.76 | $6.84 | $6.66 |
Restricted stock units, shares vested, weighted average grant date fair value | $6.93 | $6.05 | $6.25 |
Restricted stock units, shares nonvested at end of period, weighted average grant date fair value | $4.52 | $6.41 | $7.07 |
Other_Employee_Benefit_Plans_D
Other Employee Benefit Plans (Details) (Narrative) (USD $) | 12 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Defined Contribution Plans Disclosures [Line Items] | ' | ' | ' |
Amount of the Company's contributions to the 401(k) plan | $19,000,000 | $22,000,000 | $20,000,000 |
Maximum allowed percentage of employee's pre-tax salary contributed to the 401(k) plan | 100.00% | ' | ' |
Employer matching contribution, percent of match | 6.00% | ' | ' |
Amount of annual maximum allowed employer matching contributions per employee | $11,475 | $11,250 | $11,025 |
Commitments_and_Guarantees_Det
Commitments and Guarantees (Details) (Narrative) (USD $) | 12 Months Ended | |||||||
In Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 28, 2013 |
Globalfoundries | Globalfoundries | Globalfoundries | Wafers and Substrates | Software and Technology License | ||||
Long-term Purchase Commitment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Rent expense | $64 | $49 | $48 | ' | ' | ' | ' | ' |
Total non-cancelable operating lease commitments | 388 | ' | ' | ' | ' | ' | ' | ' |
Total unconditional purchase commitments | 587 | ' | ' | ' | ' | ' | 456 | 131 |
Inventory purchase obligations for 2014 | ' | ' | ' | ' | 250 | ' | ' | ' |
Cash consideration for limited waiver of exclusivity to related party | ' | ' | ' | ' | ' | 320 | ' | ' |
Cash consideration for limited waiver of exclusivity to related party, paid | ' | ' | ' | $200 | $40 | $80 | ' | ' |
Commitments_and_Guarantees_Det1
Commitments and Guarantees (Details) (Non-Cancelable Long-Term Operating Lease Obligations) (USD $) | Dec. 28, 2013 |
In Millions, unless otherwise specified | |
Future Non-cancelable Operating Lease Commitments [Abstract] | ' |
2014 | $59 |
2015 | 51 |
2016 | 43 |
2017 | 40 |
2018 | 39 |
2019 and thereafter | 156 |
Total non-cancelable operating lease commitments | $388 |
Commitments_and_Guarantees_Det2
Commitments and Guarantees (Details) (Unconditional Purchase Obligations) (USD $) | Dec. 28, 2013 |
In Millions, unless otherwise specified | |
Unconditional Purchase Commitments [Line Items] | ' |
2014 | $438 |
2015 | 80 |
2016 | 39 |
2017 | 30 |
2018 | 0 |
2019 and thereafter | 0 |
Total unconditional purchase commitments | $587 |
Commitments_and_Guarantees_Det3
Commitments and Guarantees (Details) (Schedule of Changes in Product Warranty Liability) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
Changes in Product Warranty Liability [Roll Forward] | ' | ' |
Beginning balance | $16 | $20 |
New warranties issued during the period | 27 | 28 |
Settlements during the period | -25 | -30 |
Changes in liability for pre-existing warranties during the period, including expirations | -1 | -2 |
Ending balance | $17 | $16 |
Contingencies_Details
Contingencies (Details) (USD $) | Dec. 28, 2013 |
In Millions, unless otherwise specified | |
Environmental Exist Cost [Line Items] | ' |
Estimated enviromental liability | $5.40 |
Restructuring_Details_Narrativ
Restructuring (Details) (Narrative) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring charges (reversals), net | $6 | $100 | ' |
Severance and benefits charges (reversals), net | -5 | 95 | 54 |
Contract or program termination charges | 0 | 0 | 45 |
Asset impairment charges | 0 | 4 | 1 |
Facility consolidations and closure charges (reversals), net | 11 | 1 | -2 |
2008 Restructuring Plan | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring charges (reversals), net | ' | ' | 2 |
2011 Restructuring Plan | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring charges (reversals), net | ' | ' | 100 |
Severance and benefits charges (reversals), net | ' | 8 | 54 |
Contract or program termination charges | ' | ' | 45 |
Asset impairment charges | ' | ' | 1 |
Reduction of the Company's global workforce | 13.00% | ' | ' |
2012 Restructuring Plan | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring charges (reversals), net | ' | 90 | ' |
Severance and benefits charges (reversals), net | -5 | ' | ' |
Asset impairment charges | ' | 4 | ' |
Facility consolidations and closure charges (reversals), net | $11 | ' | ' |
Reduction of the Company's global workforce | 14.00% | ' | ' |
Restructuring_Schedule_of_Rest
Restructuring (Schedule of Restructuring Activities and Related Liabilities) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring reserve balance, beginning of period | $58 | $67 |
Restructuring charges (reversals), net | 6 | 100 |
Cash payments | -54 | -105 |
Non-cash charges (reversals), net | ' | -4 |
Restructuring reserve balance, end of period | 10 | 58 |
Severance and Related Benefits | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring reserve balance, beginning of period | 41 | 22 |
Restructuring charges (reversals), net | -5 | 95 |
Cash payments | -33 | -76 |
Non-cash charges (reversals), net | ' | 0 |
Restructuring reserve balance, end of period | 3 | 41 |
Other Exit Related Costs | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring reserve balance, beginning of period | 17 | 45 |
Restructuring charges (reversals), net | 11 | 5 |
Cash payments | -21 | -29 |
Non-cash charges (reversals), net | ' | -4 |
Restructuring reserve balance, end of period | $7 | $17 |
Restructuring_Summary_of_Each_
Restructuring (Summary of Each Major Type of Restructuring Cost) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Severance and benefits charges (reversals), net | ($5) | $95 | $54 |
Contract or program termination charges | 0 | 0 | 45 |
Asset impairment charges | 0 | 4 | 1 |
Facility consolidations and closure charges (reversals), net | 11 | 1 | -2 |
Total restructuring charges | $6 | $100 | $98 |
Hedging_Transactions_and_Deriv2
Hedging Transactions and Derivative Financial Instruments (Details) (Gain (Loss) from Hedging Transactions) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Foreign Currency Forward Contracts [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Research and development | ($293) | ($288) | ($308) | ($312) | ($313) | ($328) | ($345) | ($368) | ($1,201) | ($1,354) | ($1,453) |
Marketing, general and administrative | -169 | -155 | -171 | -179 | -193 | -188 | -212 | -230 | -674 | -823 | -992 |
Other income (expense), net | -2 | 2 | -2 | -3 | -4 | 16 | -5 | -1 | -5 | 6 | -199 |
Contracts Designated as Cash Flow Hedging Instruments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign Currency Forward Contracts [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -3 | 2 | ' |
Research and development | ' | ' | ' | ' | ' | ' | ' | ' | -2 | 0 | ' |
Marketing, general and administrative | ' | ' | ' | ' | ' | ' | ' | ' | -1 | 0 | ' |
Contracts not Designated as Hedging Instruments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign Currency Forward Contracts [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other income (expense), net | ' | ' | ' | ' | ' | ' | ' | ' | ($2) | $1 | ' |
Hedging_Transactions_and_Deriv3
Hedging Transactions and Derivative Financial Instruments (Details) (Summary of Derivative Instruments) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Millions, unless otherwise specified | ||
Foreign Currency Forward Contracts [Line Items] | ' | ' |
Contracts designated as cash flow hedging instrumentss | ($3) | $0 |
Contracts not designated as hedging instruments | -1 | 0 |
Notional amount of foreign currency fair value hedge derivatives | 124 | 142 |
Foreign currency contracts, liabilities, at fair value | $4 | ' |
Supplementary_Financial_Inform1
Supplementary Financial Information (Details) (Supplementary Financial Information) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Net revenue | $1,589 | $1,461 | $1,161 | $1,088 | $1,155 | $1,269 | $1,413 | $1,585 | $5,299 | $5,422 | $6,568 |
Cost of sales | 1,036 | 940 | 702 | 643 | 977 | 877 | 775 | 1,558 | 3,321 | 4,187 | 3,628 |
Gross margin | 553 | 521 | 459 | 445 | 178 | 392 | 638 | 27 | 1,978 | 1,235 | 2,940 |
Research and development | 293 | 288 | 308 | 312 | 313 | 328 | 345 | 368 | 1,201 | 1,354 | 1,453 |
Marketing, general and administrative | 169 | 155 | 171 | 179 | 193 | 188 | 212 | 230 | 674 | 823 | 992 |
Amortization of acquired intangible assets | 4 | 5 | 4 | 5 | 4 | 4 | 4 | 1 | 18 | 14 | 29 |
Restructuring charges (reversals), net | 0 | -22 | 5 | 47 | 90 | 3 | 0 | 8 | 30 | 100 | 98 |
Legal settlements, net | -48 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -48 | 0 | 0 |
Operating income (loss) | 135 | 95 | -29 | -98 | -422 | -131 | 77 | -580 | 103 | -1,056 | 368 |
Interest income | 1 | 1 | 2 | 1 | 2 | 2 | 2 | 2 | 5 | 8 | 10 |
Interest expense | -44 | -47 | -42 | -44 | -45 | -44 | -43 | -43 | -177 | -175 | -180 |
Other income (expense), net | -2 | 2 | -2 | -3 | -4 | 16 | -5 | -1 | -5 | 6 | -199 |
Income (loss) from continuing operations before income taxes | 90 | 51 | -71 | -144 | -469 | -157 | 31 | -622 | -74 | -1,217 | 491 |
Provision (benefit) for income taxes | 1 | 3 | 3 | 2 | 4 | 0 | -6 | -32 | 9 | -34 | -4 |
Dilution gain in investee | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 492 |
Income (loss) from continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | -83 | -1,183 | 495 |
Loss from discontinued operations, net of tax | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | -4 |
Net income (loss) | $89 | $48 | ($74) | ($146) | ($473) | ($157) | $37 | ($590) | ($83) | ($1,183) | $491 |
Basic net income (loss) per share | $0.12 | $0.06 | ($0.10) | ($0.19) | ($0.63) | ($0.21) | $0.05 | ($0.80) | ($0.11) | ($1.60) | $0.68 |
Diluted net income (loss) per share | $0.12 | $0.06 | ($0.10) | ($0.19) | ($0.63) | ($0.21) | $0.05 | ($0.80) | ($0.11) | ($1.60) | $0.66 |
Shares used in per share calculation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic | 759 | 757 | 752 | 749 | 747 | 745 | 739 | 734 | 754 | 741 | 727 |
Diluted | 766 | 764 | 752 | 749 | 747 | 745 | 755 | 734 | 754 | 741 | 742 |
Valuation_and_Qualifying_Accou1
Valuation and Qualifying Accounts (Details) (Valuation and Qualifying Accounts) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Valuation allowances and reserves, balance | $2 | $2 | $4 |
Valuation allowances and reserves, charged to cost and expense | -2 | 0 | -1 |
Valuation allowances and reserves, deductions | 0 | 0 | -1 |
Valuation allowances and reserves, balance | $0 | $2 | $2 |