Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 29, 2014 | Apr. 28, 2014 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 29-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Trading Symbol | 'AMD | ' |
Entity Registrant Name | 'ADVANCED MICRO DEVICES INC | ' |
Entity Central Index Key | '0000002488 | ' |
Current Fiscal Year End Date | '--12-27 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 762,041,883 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Net revenue | $1,397 | $1,088 |
Cost of sales | 910 | 643 |
Gross margin | 487 | 445 |
Research and development | 279 | 312 |
Marketing, general and administrative | 156 | 179 |
Amortization of acquired intangible assets | 3 | 5 |
Restructuring and other special charges, net | 0 | 47 |
Operating income (loss) | 49 | -98 |
Interest income | 1 | 1 |
Interest expense | -47 | -44 |
Other expense, net | -21 | -3 |
Loss before income taxes | -18 | -144 |
Provision for income taxes | 2 | 2 |
Net loss | ($20) | ($146) |
Net loss per share | ' | ' |
Basic net loss per share | ($0.03) | ($0.19) |
Diluted net loss per share | ($0.03) | ($0.19) |
Shares used in per share calculation: | ' | ' |
Basic | 761 | 749 |
Diluted | 761 | 749 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Net loss | ($20) | ($146) |
Unrealized gains (losses) on cash flow hedges: | ' | ' |
Unrealized losses arising during the period, net of tax effects of $0 and $(1) | -3 | -1 |
Reclassification adjustment for losses realized and included in net loss, net of tax effects of zero | 2 | 0 |
Total other comprehensive loss | -1 | -1 |
Total comprehensive loss | ($21) | ($147) |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Tax effect related to unrealized gains (losses) on cash flow hedges: | ' | ' |
Unrealized gains (losses) arising during period | $0 | ($1) |
Reclassification adjustment for (gains) losses realized and included in net income (loss) | $0 | $0 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $554 | $869 |
Marketable securities | 348 | 228 |
Accounts receivable, net of allowances of $0 and $0 | 840 | 832 |
Inventories, net | 869 | 884 |
Prepaid expenses and other current assets | 79 | 71 |
Total current assets | 2,690 | 2,884 |
Long-term marketable securities | 80 | 90 |
Property, plant and equipment, net | 337 | 346 |
Acquisition related intangible assets, net | 75 | 78 |
Goodwill | 553 | 553 |
Other assets | 373 | 386 |
Total assets | 4,108 | 4,337 |
Current liabilities: | ' | ' |
Short-term debt | 60 | 60 |
Accounts payable | 483 | 519 |
Payable to GLOBALFOUNDRIES | 213 | 364 |
Accrued and other current liabilities | 482 | 530 |
Deferred income on shipments to distributors | 146 | 145 |
Total current liabilities | 1,384 | 1,618 |
Long-term debt | 2,078 | 1,998 |
Other long-term liabilities | 135 | 177 |
Capital stock: | ' | ' |
Common stock, par value $0.01; 1,500 shares authorized on March 29, 2014 and December 28, 2013; shares issued: 772 shares on March 29, 2014 and 735 shares on December 28, 2013; shares outstanding: 762 shares on March 29, 2014 and 725 shares on December 28, 2013 | 8 | 7 |
Additional paid-in capital | 6,883 | 6,894 |
Treasury stock, at cost (10 shares on March 29, 2014 and December 28, 2013) | -114 | -112 |
Accumulated deficit | -6,263 | -6,243 |
Accumulated other comprehensive loss | -3 | -2 |
Total stockholders' equity | 511 | 544 |
Total liabilities and stockholders' equity | $4,108 | $4,337 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
In Millions, except Per Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Allowance for doubtful accounts | $0 | $0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 1,500 | 1,500 |
Common stock, shares issued | 772 | 735 |
Common stock, shares outstanding | 762 | 725 |
Treasury stock, shares | 10 | 10 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net loss | ($20) | ($146) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Depreciation and amortization | 53 | 66 |
Net loss on disposal of property, plant and equipment | 0 | 48 |
Deferred income taxes | 0 | 1 |
Stock-based compensation expense | 23 | 24 |
Non-cash interest expense | 6 | 6 |
Loss on debt redemptions | 15 | 0 |
Other | -4 | -1 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | -8 | -14 |
Inventories | 14 | -52 |
Prepaid expenses and other current assets | -8 | -1 |
Payable to GLOBALFOUNDRIES | -151 | -74 |
Accounts payable, accrued liabilities and other | -124 | -12 |
Net cash used in operating activities | -204 | -155 |
Cash flows from investing activities: | ' | ' |
Purchases of available-for-sale securities | -310 | -361 |
Purchases of property, plant and equipment | -21 | -20 |
Proceeds from sales and maturities of available-for-sale securities | 200 | 250 |
Proceeds from sale of property, plant, and equipment | 0 | 178 |
Net cash provided by (used in) investing activities | -131 | 47 |
Cash flows from financing activities: | ' | ' |
Proceeds from issuance of common stock | 1 | 1 |
Proceeds from borrowings, net | 589 | 0 |
Repayments of long-term debt and capital lease obligations | -569 | -1 |
Other | 1 | 0 |
Net cash provided by financing activities | 20 | 0 |
Net decrease in cash and cash equivalents | -315 | -108 |
Cash and cash equivalents at beginning of period | 869 | 549 |
Cash and cash equivalents at end of period | $554 | $441 |
Basis_of_Presentation_and_Sign
Basis of Presentation and Significant Accounting Policies (Notes) | 3 Months Ended |
Mar. 29, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation and Significant Accounting Policies | ' |
Basis of Presentation and Significant Accounting Policies | |
Basis of Presentation. The accompanying unaudited condensed consolidated financial statements of Advanced Micro Devices, Inc. and its subsidiaries (the Company or AMD) have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. The results of operations for the quarter March 29, 2014 shown in this report are not necessarily indicative of results to be expected for the full year ending December 27, 2014. In the opinion of the Company’s management, the information contained herein reflects all adjustments necessary for a fair presentation of the Company’s results of operations, financial position and cash flows. All such adjustments are of a normal, recurring nature. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 28, 2013. | |
The Company uses a 52 or 53 week fiscal year ending on the last Saturday in December. The quarters ended March 29, 2014 and March 30, 2013 each consisted of 13 weeks. | |
Principles of Consolidation. The condensed consolidated financial statements include the Company’s accounts and those of its wholly-owned subsidiaries. Upon consolidation, all significant intercompany accounts and transactions are eliminated. |
GLOBALFOUNDRIES_Notes
GLOBALFOUNDRIES (Notes) | 3 Months Ended |
Mar. 29, 2014 | |
Related Party Transactions [Abstract] | ' |
GLOBALFOUNDRIES | ' |
GLOBALFOUNDRIES | |
Wafer Supply Agreement. The Wafer Supply Agreement (WSA) governs the terms by which the Company purchases products manufactured by GLOBALFOUNDRIES Inc. (GF). | |
Third Amendment to Wafer Supply Agreement. 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. | |
Fourth Amendment to Wafer Supply Agreement. On March 30, 2014, the Company entered into a fourth amendment to the WSA. The primary effect of the fourth amendment was to establish volume purchase commitments and fixed pricing for the 2014 calendar year as well as to modify certain other terms of the WSA applicable to wafers for some of the Company’s microprocessor, graphics processor and semi-custom game console products to be delivered by GF to the Company during the 2014 calendar year. | |
The Company’s total purchases from GF related to wafer manufacturing and research and development activities in the first quarter of 2014 and the first quarter of 2013 were $260 million and $269 million, respectively. | |
The Company currently estimates that its wafer purchase obligation from GF under the fourth amendment to the WSA will be $1.2 billion for the 2014 calendar year. The Company is not able to meaningfully quantify or estimate its purchase obligations to GF beyond December 31, 2014, but it expects that its future purchases from GF will continue to be material. | |
GF is a related party of the Company because GF is affiliated with West Coast Hitech L.P. (WCH), the Company's largest stockholder. |
Debt_Notes
Debt (Notes) | 3 Months Ended | |
Mar. 29, 2014 | ||
Debt Disclosure [Abstract] | ' | |
Debt | ' | |
Debt | ||
6.75% Senior Notes Due 2019 | ||
On February 26, 2014, the Company issued $600 million of 6.75% Senior Notes due 2019 (6.75% Notes). The 6.75% Notes are general unsecured senior obligations of the Company. Interest is payable on March 1 and September 1 of each year beginning September 1, 2014 until the maturity date of March 1, 2019. The 6.75% Notes are governed by the terms of an indenture (the 6.75% Indenture) dated February 26, 2014 between the Company and Wells Fargo Bank, National Association, as trustee. | ||
At any time (which may be more than once) before March 1, 2017, the Company may redeem up to 35% of the aggregate principal amount of the 6.75% Notes within 90 days of the closing of an equity offering with the net proceeds thereof at a redemption price not greater than 106.75% of the principal amount thereof, together with accrued and unpaid interest to but excluding the date of redemption. At any time (which may be more than once) before March 1, 2019, the Company may redeem some or all of the 6.75% Notes at a price equal to 100% of the principal amount, plus accrued and unpaid interest and a “make whole” premium (as set forth in the 6.75% Indenture). | ||
Holders have the right to require the Company to repurchase all or a portion of its 6.75% Notes in the event that the Company undergoes a change of control, as defined in the 6.75% 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 6.75% Indenture) may result in the acceleration of the maturity of the 6.75% Notes. | ||
The 6.75% Indenture contains certain covenants that limit, among other things, the Company’s ability and the ability of its subsidiaries, to: | ||
• | incur additional indebtedness, except specified permitted debt; | |
• | pay dividends and make other restricted payments; | |
• | make certain investments if an event of a default exists, or if specified financial conditions are not satisfied; | |
• | create or permit certain liens; | |
• | create or permit restrictions on the ability of its subsidiaries to pay dividends or make other distributions to the Company; | |
• | use the proceeds from sales of assets; | |
• | enter into certain types of transactions with affiliates; and | |
• | consolidate, merge or sell its assets as entirety or substantially as an entirety. | |
The 6.75% 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 6.75% 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. | ||
The Company may elect to purchase or otherwise retire the 6.75% Notes with cash, stock or other assets from time to time in open market or private negotiated transactions, either directly or through intermediaries, or by tender offer, when the Company believes the market conditions are favorable to do so. | ||
6.00% Convertible Senior Notes Due 2015 | ||
During the first quarter of 2014, the Company repurchased $64 million in aggregate principal amount of its 6.00% Convertible Senior Notes Due 2015 (6.00% Notes) in open market transactions for $69 million, which included payment of accrued and unpaid interest of $1 million. Also, during the first quarter of 2014, the Company repurchased a portion of its 6.00% Notes through a partial tender offer. The Company repurchased $423 million aggregate principal amount of the 6.00% Notes for $460 million in cash, which included payment of accrued and unpaid interest of $10 million. The Company incurred a total loss of $10 million in connection with the foregoing repurchases of the 6.00% Notes. As of March 29, 2014, the outstanding aggregate principal amount of the 6.00% Notes was $42 million and the remaining carrying value was $41 million, net of a debt discount of $1 million. | ||
8.125% Senior Notes Due 2017 | ||
During the first quarter of 2014, the Company repurchased $48 million in aggregate principal amount of its 8.125% Senior Notes Due 2017 (8.125% Notes) pursuant to a partial tender offer for $51 million, which included payment of accrued and unpaid interest of $1 million. The Company incurred a total loss of $5 million in connection with the foregoing repurchase of the 8.125% Notes. As of March 29, 2014,the outstanding aggregate principal amount of the 8.125% Notes was $452 million and the remaining carrying value was $427 million, net of a debt discount of $25 million. | ||
The agreements governing the Company's 6.00% Notes, 8.125% Notes, 6.75% Notes, 7.75% Senior Notes due 2020 and 7.50% Senior Notes due 2022 and the Company's senior secured asset based line of credit for a principal amount of up to $500 million (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. |
Supplemental_Balance_Sheet_Inf
Supplemental Balance Sheet Information (Notes) | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
Balance Sheet Related Disclosures [Abstract] | ' | |||||||
Supplemental Balance Sheet Information | ' | |||||||
Supplemental Balance Sheet Information | ||||||||
Inventories | ||||||||
March 29, | December 28, | |||||||
2014 | 2013 | |||||||
(In millions) | ||||||||
Raw materials | $ | 29 | $ | 30 | ||||
Work in process | 650 | 727 | ||||||
Finished goods | 190 | 127 | ||||||
Total inventories, net | $ | 869 | $ | 884 | ||||
Property, Plant and Equipment | ||||||||
March 29, | December 28, | |||||||
2014 | 2013 | |||||||
(In millions) | ||||||||
Land and land improvements | $ | 4 | $ | 3 | ||||
Buildings and leasehold improvements | 252 | 246 | ||||||
Equipment | 1,446 | 1,466 | ||||||
Construction in progress | 23 | 18 | ||||||
1,725 | 1,733 | |||||||
Accumulated depreciation and amortization | (1,388 | ) | (1,387 | ) | ||||
Total property, plant and equipment, net | $ | 337 | $ | 346 | ||||
Other Assets | ||||||||
March 29, | December 28, | |||||||
2014 | 2013 | |||||||
(In millions) | ||||||||
Software technology and licenses | $ | 260 | $ | 280 | ||||
Other | 113 | 106 | ||||||
Total other assets | $ | 373 | $ | 386 | ||||
Accrued and Other Current Liabilities | ||||||||
March 29, | December 28, | |||||||
2014 | 2013 | |||||||
(In millions) | ||||||||
Accrued compensation and benefits | $ | 128 | $ | 186 | ||||
Marketing programs and advertising expenses | 143 | 150 | ||||||
Software technology and licenses payable | 56 | 27 | ||||||
Other accrued and current liabilities | 155 | 167 | ||||||
Total accrued and other current liabilities | $ | 482 | $ | 530 | ||||
Net_Income_Loss_Per_Share_Note
Net Income (Loss) Per Share (Notes) | 3 Months Ended | ||||||||
Mar. 29, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Net Income (Loss) Per Share | ' | ||||||||
Net Income (Loss) Per Share | |||||||||
Basic net income (loss) per share is computed based on the weighted average number of shares outstanding and shares issuable upon exercise of a warrant issued by the Company to WCH, in connection with the GF transaction in 2009. On March 7, 2014, the Company issued 34,906,166 shares of common stock pursuant to the cashless exercise in full by WCH of its warrant to purchase up to 35,000,000 shares of the Company's common stock at an exercise price of $0.01 per share. As a result, the warrant is no longer outstanding. The issuance of the common stock did not have any effect on basic and dilutive earnings per share amounts because the full 35,000,000 shares of common stock issuable to WCH had already been included in the denominator for calculating basic and dilutive earnings per share for all periods presented. | |||||||||
Diluted net 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 and restricted stock units. | |||||||||
The following table sets forth the components of basic and diluted income (loss) per share: | |||||||||
Quarter Ended | |||||||||
March 29, | March 30, | ||||||||
2014 | 2013 | ||||||||
(In millions, except per share amounts) | |||||||||
Numerator – Net loss: | |||||||||
Numerator for basic and diluted net loss per share | $ | (20 | ) | $ | (146 | ) | |||
Denominator – Weighted average shares | |||||||||
Denominator for basic and diluted net loss per share | 761 | 749 | |||||||
Net loss per share: | |||||||||
Basic | $ | (0.03 | ) | $ | (0.19 | ) | |||
Diluted | $ | (0.03 | ) | $ | (0.19 | ) | |||
Potential shares from employee stock options, restricted stock and restricted stock units totaling 45 million were not included in the net loss per share calculation for the first quarter of 2014 because their inclusion would have been anti-dilutive. | |||||||||
Potential shares from employee stock options, restricted stock and restricted stock units totaling 56 million were not included in the net loss per share calculation for the first quarter of 2013 because their inclusion would have been anti-dilutive. |
Financial_Instruments_Notes
Financial Instruments (Notes) | 3 Months Ended | ||||||||||||||||
Mar. 29, 2014 | |||||||||||||||||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ' | ||||||||||||||||
Financial Instruments | ' | ||||||||||||||||
Financial Instruments | |||||||||||||||||
Cash, Cash Equivalents and Marketable Securities | |||||||||||||||||
Financial instruments measured and recorded at fair value on a recurring basis as of March 29, 2014 and December 28, 2013 are summarized below: | |||||||||||||||||
Total Fair | Cash and | Short-Term | Long-Term | ||||||||||||||
Value | Cash | Marketable | Marketable | ||||||||||||||
Equivalents | Securities | Securities | |||||||||||||||
(In millions) | |||||||||||||||||
March 29, 2014 | |||||||||||||||||
Cash | $ | 285 | $ | 285 | $ | — | $ | — | |||||||||
Level 1(1) (2) | |||||||||||||||||
Money market funds | $ | 18 | $ | 14 | $ | — | $ | 4 | |||||||||
Total level 1 | $ | 18 | $ | 14 | $ | — | $ | 4 | |||||||||
Level 2(2) (3) | |||||||||||||||||
Commercial paper | $ | 603 | $ | 255 | $ | 348 | $ | — | |||||||||
Corporate bonds | 76 | — | — | 76 | |||||||||||||
Total level 2 | $ | 679 | $ | 255 | $ | 348 | $ | 76 | |||||||||
Total | $ | 982 | $ | 554 | $ | 348 | $ | 80 | |||||||||
Total Fair | Cash and | Short-Term | Long-Term | ||||||||||||||
Value | Cash | Marketable | Marketable | ||||||||||||||
Equivalents | Securities | Securities | |||||||||||||||
(In millions) | |||||||||||||||||
December 28, 2013 | |||||||||||||||||
Cash | $ | 429 | $ | 429 | $ | — | $ | — | |||||||||
Level 1(1) (2) | |||||||||||||||||
Money market funds | $ | 21 | $ | 19 | $ | — | $ | 2 | |||||||||
Total level 1 | $ | 21 | $ | 19 | $ | — | $ | 2 | |||||||||
Level 2(2) (3) | |||||||||||||||||
Commercial paper | $ | 599 | $ | 421 | $ | 178 | $ | — | |||||||||
Time deposit | 50 | — | 50 | — | |||||||||||||
Corporate bonds | 88 | — | — | 88 | |||||||||||||
Total level 2 | $ | 737 | $ | 421 | $ | 228 | $ | 88 | |||||||||
Total | $ | 1,187 | $ | 869 | $ | 228 | $ | 90 | |||||||||
-1 | The Company’s Level 1 assets are valued using quoted prices for identical instruments in active markets. | ||||||||||||||||
-2 | The Company did not have any transfers between Level 1 and Level 2 of the fair value hierarchy during the quarter ended March 29, 2014 or the year ended December 28, 2013. | ||||||||||||||||
-3 | 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 service, other than that utilized by the brokers, that use a similar technique as the brokers to derive pricing as described above. | ||||||||||||||||
Available-for-sale securities held by the Company as of March 29, 2014 and December 28, 2013 consisted of money market funds, commercial paper, time deposits, corporate bonds and mutual funds. The amortized cost of available-for-sale securities approximates the fair value for all periods presented. | |||||||||||||||||
In addition to those amounts presented above, at March 29, 2014 and December 28, 2013, the Company had $18 million of available-for-sale investments in money market funds used as collateral for leased buildings and letters of credit deposits, which were included in Other Assets on the Company’s condensed consolidated balance sheets. These money market funds are classified within Level 1 because they are valued using quoted prices for identical instruments in active markets. Their amortized cost are the same as the fair value for all periods presented. The Company is restricted from accessing these deposits. | |||||||||||||||||
Also in addition to those amounts presented above, at March 29, 2014 and December 28, 2013, the Company had $13 million and $14 million, respectively, of available-for-sale investments in mutual funds held in a Rabbi trust established for the Company's deferred compensation plan, which were included in Other Assets on the Company's condensed consolidated balance sheets. These mutual funds are classified within Level 1 because they are valued using quoted prices for identical instruments in active markets. Their amortized cost approximates the fair value for all periods presented. The Company is restricted from accessing these investments. | |||||||||||||||||
There were no sales of available-for-sale securities during the quarter ended March 29, 2014. | |||||||||||||||||
At March 29, 2014 and December 28, 2013, $80 million and $90 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 March 29, 2014 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 two years, and the Company intends to invest the money market funds into corporate bonds with maturities greater than one year. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without call or prepayment penalties. | |||||||||||||||||
Financial Instruments Not Recorded at Fair Value on a Recurring Basis. The Company carries its financial instruments at fair value with the exception of its debt. Financial instruments that are not recorded at fair value are measured at fair value on a quarterly basis for disclosure purposes. The carrying amounts and estimated fair values of financial instruments not recorded at fair value are as follows: | |||||||||||||||||
March 29, 2014 | December 28, 2013 | ||||||||||||||||
Carrying | Estimated | Carrying | Estimated | ||||||||||||||
Amount | Fair Value | Amount | Fair Value | ||||||||||||||
(In millions) | |||||||||||||||||
Short-term debt (excluding capital leases) | $ | 55 | $ | 55 | $ | 55 | $ | 55 | |||||||||
Long-term debt (excluding capital leases) | $ | 2,068 | $ | 2,132 | $ | 1,986 | $ | 2,132 | |||||||||
The fair value of the Company’s short-term and long-term debt that are 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. | |||||||||||||||||
Hedging Transactions and Derivative Financial Instruments | |||||||||||||||||
The following table shows the amount of gain (loss) included in accumulated other comprehensive income (loss), the amount of gain (loss) reclassified from accumulated other comprehensive income (loss) and included in earnings related to the foreign currency forward contracts designated as cash flow hedges and the amount of gain (loss) included in other income (expense), net, related to contracts not designated as hedging instruments, which was allocated in the condensed consolidated statement of operations: | |||||||||||||||||
Quarter Ended | |||||||||||||||||
March 29, | March 30, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
(In millions) | |||||||||||||||||
Foreign Currency Forward Contracts | |||||||||||||||||
Contracts designated as cash flow hedging instruments | |||||||||||||||||
Other comprehensive loss | $ | (1 | ) | $ | (2 | ) | |||||||||||
Research and development | (1 | ) | — | ||||||||||||||
Marketing, general and administrative | (1 | ) | — | ||||||||||||||
Contracts not designated as hedging instruments | |||||||||||||||||
Other expense, net | $ | (1 | ) | $ | (1 | ) | |||||||||||
The Company’s foreign currency derivative contracts are classified within Level 2 because the valuation inputs are based on quoted prices and market observable data of similar instruments in active markets, such as currency spot and forward rates. | |||||||||||||||||
The following table shows the fair value amounts included in 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 condensed consolidated balance sheet as follows: | |||||||||||||||||
March 29, | December 28, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
(In millions) | |||||||||||||||||
Foreign Currency Forward Contracts | |||||||||||||||||
Contracts designated as cash flow hedging instruments | $ | (4 | ) | $ | (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 March 29, 2014 and December 28, 2013, the notional values of the Company’s outstanding foreign currency forward contracts were $118 million and $124 million, respectively. All the contracts mature within 12 months, and, upon maturity, the amounts recorded in accumulated other comprehensive income (loss) are expected to be reclassified into earnings. The Company hedges its exposure to the variability in future cash flows for forecasted transactions over a maximum of 12 months. As of March 29, 2014, 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 March 29, 2014, the Company was not required to post any collateral. |
Income_Taxes_Notes
Income Taxes (Notes) | 3 Months Ended |
Mar. 29, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
In the first quarter of 2014, the Company recorded an income tax provision of $2 million due to foreign taxes in profitable locations. | |
In the first quarter of 2013, the Company recorded an income tax provision of $2 million due to $2 million of foreign taxes in profitable locations and $1 million related to the reversal of previously recognized tax benefits associated with other comprehensive income, partially offset by $1 million of tax benefits from Canadian co-op credits and the monetization of U.S. tax credits. | |
As of March 29, 2014, substantially all of the Company's U.S. and Canadian deferred tax assets, net of deferred tax liabilities, continue to be subject to a valuation allowance. The realization of these assets is dependent on substantial future taxable income which, at March 29, 2014, in management's estimate, is not more likely than not to be achieved. | |
The Company's gross unrecognized tax benefits increased by $1 million during the first quarter of 2014 due to an increase in Canadian tax credits. The total gross unrecognized tax benefits as of March 29, 2014 were $53 million. As of March 29, 2014, the Company recognized $2 million of previously unrecognized tax benefits available to offset $2 million of tax liabilities. There were no material changes to accrued interest or penalties in the first quarter of 2014. | |
The Company currently expects to reduce its unrecognized tax benefits by $31 million primarily as a result of the potential settlement of tax audits with certain foreign tax authorities over the next 12 months. The Company does not believe it is reasonably possible that other unrecognized tax benefits will materially change in the next 12 months. However, the settlement, resolution or closure of tax audits are highly uncertain. |
Segment_Reporting_Notes
Segment Reporting (Notes) | 3 Months Ended | ||||||||
Mar. 29, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Segment Reporting | ' | ||||||||
Segment Reporting | |||||||||
Management, including the Chief Operating Decision Maker, who is the Company’s Chief Executive Officer, reviews and assesses operating performance using segment net revenues and operating income (loss) before interest, other income (expense), net, and income taxes. These performance measures include the allocation of expenses to the operating segments based on management’s judgment. | |||||||||
The Company uses the following two reportable segments: | |||||||||
• | the Computing Solutions segment, which primarily includes x86 microprocessors, as standalone devices or as incorporated as an accelerated processing unit (APU), chipsets, embedded processors and dense servers; and | ||||||||
• | the Graphics and Visual Solutions segment, which primarily includes graphics processing units (GPU), including professional graphics, semi-custom System-on-Chip (SOC) products, development services and technology for game consoles. | ||||||||
In addition to these reportable segments, the Company has an All Other category, which is not a reportable segment. This category primarily includes certain expenses and credits that are not allocated to any of the operating segments because management does not consider these expenses and credits in evaluating the performance of the operating segments. Also included in this category are amortization of acquired intangible assets, employee stock-based compensation expense, net restructuring and other special charges and workforce rebalancing severance charges. 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: | |||||||||
Quarter Ended | |||||||||
March 29, | March 30, | ||||||||
2014 | 2013 | ||||||||
(In millions) | |||||||||
Net revenue: | |||||||||
Computing Solutions | $ | 663 | $ | 751 | |||||
Graphics and Visual Solutions | 734 | 337 | |||||||
Total net revenue | $ | 1,397 | $ | 1,088 | |||||
Operating income (loss): | |||||||||
Computing Solutions | $ | (3 | ) | $ | (39 | ) | |||
Graphics and Visual Solutions | 91 | 16 | |||||||
All Other | (39 | ) | (75 | ) | |||||
Total operating income (loss) | $ | 49 | $ | (98 | ) | ||||
StockBased_Incentive_Compensat
Stock-Based Incentive Compensation Plans (Notes) | 3 Months Ended | ||||||||
Mar. 29, 2014 | |||||||||
Share-based Compensation [Abstract] | ' | ||||||||
Stock-Based Incentive Compensation Plans | ' | ||||||||
Stock-Based Incentive Compensation Plans | |||||||||
The following table summarizes stock-based compensation expense related to employee stock options, restricted stock and restricted stock units, which is allocated within the Company’s condensed consolidated statements of operations as follows: | |||||||||
Quarter Ended | |||||||||
March 29, | March 30, | ||||||||
2014 | 2013 | ||||||||
(In millions) | |||||||||
Cost of sales | $ | 1 | $ | 2 | |||||
Research and development | 12 | 13 | |||||||
Marketing, general and administrative | 10 | 9 | |||||||
Stock-based compensation expense, net of tax of $0 | $ | 23 | $ | 24 | |||||
For all periods presented, the Company did not realize any excess tax benefit related to stock-based compensation and therefore did not record any related financing cash flows. | |||||||||
Stock Options | |||||||||
The weighted average assumptions applied in the lattice-binomial model that the Company uses to estimate the fair value employee stock options are as follows: | |||||||||
Quarter Ended | |||||||||
March 29, | March 30, | ||||||||
2014 | 2013 | ||||||||
Expected volatility | 55.03 | % | 60.97 | % | |||||
Risk-free interest rate | 1.06 | % | 0.61 | % | |||||
Expected dividends | 0 | % | 0 | % | |||||
Expected life | 3.86 years | 3.83 years | |||||||
For the quarters ended March 29, 2014 and March 30, 2013, the Company granted 60,000 and 1,327,000, respectively, employee stock options with weighted average grant date fair values per share of $1.62 and $1.17, respectively. | |||||||||
Restricted Stock and Restricted Stock Units | |||||||||
For the quarters ended March 29, 2014 and March 30, 2013, the Company granted 480,000 and 2,447,000 restricted stock units, respectively, with weighted average grant date fair values per share of $3.80 and $2.69, respectively. |
Commitments_and_Contingencies_
Commitments and Contingencies (Notes) | 3 Months Ended | ||||||||
Mar. 29, 2014 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||
Commitments and Contingencies | ' | ||||||||
Commitments and Contingencies | |||||||||
Warranties and Indemnities | |||||||||
The Company generally warrants that its products sold to its customers will conform to the Company’s approved specifications and be free from defects in material and workmanship under normal use and service for one year. Subject to certain exceptions, the Company also offers a three-year limited warranty to end users for only those central processing unit (CPU) and AMD APU products that are commonly referred to as “processors in a box” and for PC workstations products. The Company also offered extended limited warranties to certain customers of “tray” microprocessor products and/or workstation graphics products who have written agreements with the Company and target their computer systems at the commercial and/or embedded markets. | |||||||||
Changes in the Company’s estimated liability for product warranty during the quarters ended March 29, 2014 and March 30, 2013 were as follows: | |||||||||
Quarter Ended | |||||||||
March 29, | March 30, | ||||||||
2014 | 2013 | ||||||||
(In millions) | |||||||||
Beginning balance | $ | 17 | $ | 16 | |||||
New warranties issued | 8 | 6 | |||||||
Settlements | (9 | ) | (6 | ) | |||||
Changes in liability for pre-existing warranties, including expirations | 2 | (2 | ) | ||||||
Ending balance | $ | 18 | $ | 14 | |||||
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 | |||||||||
Securities Litigation | |||||||||
On March 20, 2014, a purported shareholder derivative lawsuit captioned Wessels v. Read, et al., Case No. 1:14-cv-262486 was filed against the Company (as a nominal defendant only) and certain of its directors and officers in the Santa Clara County Superior Court of the State of California. The complaint purports to assert claims against the Company and certain individual directors and officers for breach of fiduciary duty, waste of corporate assets and unjust enrichment. The complaint seeks damages allegedly caused by alleged materially misleading statements and/or material omissions by the Company and the individual directors and officers regarding the Company's 32nm technology and “Llano” product, which statements and omissions, the plaintiffs claim, allegedly operated to inflate artificially the price paid for the Company's common stock during the period. 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 the Company's financial condition, cash flows or results of operations. | |||||||||
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 the Company's 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 the Company’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 the Company's financial condition, cash flows or results of operations. | |||||||||
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 business, consolidated financial position, results of operations or cash flows. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) (Notes) | 3 Months Ended | |||||||||||||||||||||
Mar. 29, 2014 | ||||||||||||||||||||||
Statement of Comprehensive Income [Abstract] | ' | |||||||||||||||||||||
Comprehensive Income (Loss) Note [Text Block] | ' | |||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||
The table below summarizes the changes in accumulated other comprehensive loss by component for the quarters ended March 29, 2014 and March 30, 2013. | ||||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||||
March 29, | March 30, | |||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||
Unrealized gains (losses) on available-for-sale securities | Unrealized gains (losses) on cash flow hedges | Total | Unrealized gains (losses) on available-for-sale securities | Unrealized gains (losses) on cash flow hedges | Total | |||||||||||||||||
(In millions) | ||||||||||||||||||||||
Beginning balance | 1 | $ | (3 | ) | $ | (2 | ) | — | $ | (3 | ) | $ | (3 | ) | ||||||||
Unrealized losses arising during the period, net of tax effects | — | (3 | ) | (3 | ) | — | (1 | ) | (1 | ) | ||||||||||||
Reclassification adjustment for losses realized and included in net loss, net of tax effects | — | 2 | 2 | — | — | — | ||||||||||||||||
Total other comprehensive loss | — | (1 | ) | (1 | ) | — | (1 | ) | (1 | ) | ||||||||||||
Ending balance | 1 | $ | (4 | ) | $ | (3 | ) | — | $ | (4 | ) | $ | (4 | ) | ||||||||
Supplemental_Balance_Sheet_Inf1
Supplemental Balance Sheet Information (Tables) | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
Balance Sheet Related Disclosures [Abstract] | ' | |||||||
Inventories | ' | |||||||
March 29, | December 28, | |||||||
2014 | 2013 | |||||||
(In millions) | ||||||||
Raw materials | $ | 29 | $ | 30 | ||||
Work in process | 650 | 727 | ||||||
Finished goods | 190 | 127 | ||||||
Total inventories, net | $ | 869 | $ | 884 | ||||
Property, Plant and Equipment | ' | |||||||
March 29, | December 28, | |||||||
2014 | 2013 | |||||||
(In millions) | ||||||||
Land and land improvements | $ | 4 | $ | 3 | ||||
Buildings and leasehold improvements | 252 | 246 | ||||||
Equipment | 1,446 | 1,466 | ||||||
Construction in progress | 23 | 18 | ||||||
1,725 | 1,733 | |||||||
Accumulated depreciation and amortization | (1,388 | ) | (1,387 | ) | ||||
Total property, plant and equipment, net | $ | 337 | $ | 346 | ||||
Other Assets | ' | |||||||
March 29, | December 28, | |||||||
2014 | 2013 | |||||||
(In millions) | ||||||||
Software technology and licenses | $ | 260 | $ | 280 | ||||
Other | 113 | 106 | ||||||
Total other assets | $ | 373 | $ | 386 | ||||
Accrued and Other Current Liabilities | ' | |||||||
March 29, | December 28, | |||||||
2014 | 2013 | |||||||
(In millions) | ||||||||
Accrued compensation and benefits | $ | 128 | $ | 186 | ||||
Marketing programs and advertising expenses | 143 | 150 | ||||||
Software technology and licenses payable | 56 | 27 | ||||||
Other accrued and current liabilities | 155 | 167 | ||||||
Total accrued and other current liabilities | $ | 482 | $ | 530 | ||||
Net_Income_Loss_Per_Share_Tabl
Net Income (Loss) Per Share (Tables) | 3 Months Ended | ||||||||
Mar. 29, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Net Income (Loss) Per Share | ' | ||||||||
Quarter Ended | |||||||||
March 29, | March 30, | ||||||||
2014 | 2013 | ||||||||
(In millions, except per share amounts) | |||||||||
Numerator – Net loss: | |||||||||
Numerator for basic and diluted net loss per share | $ | (20 | ) | $ | (146 | ) | |||
Denominator – Weighted average shares | |||||||||
Denominator for basic and diluted net loss per share | 761 | 749 | |||||||
Net loss per share: | |||||||||
Basic | $ | (0.03 | ) | $ | (0.19 | ) | |||
Diluted | $ | (0.03 | ) | $ | (0.19 | ) |
Financial_Instruments_Tables
Financial Instruments (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 29, 2014 | |||||||||||||||||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ' | ||||||||||||||||
Summary of Available-for-sale Securities | ' | ||||||||||||||||
Total Fair | Cash and | Short-Term | Long-Term | ||||||||||||||
Value | Cash | Marketable | Marketable | ||||||||||||||
Equivalents | Securities | Securities | |||||||||||||||
(In millions) | |||||||||||||||||
March 29, 2014 | |||||||||||||||||
Cash | $ | 285 | $ | 285 | $ | — | $ | — | |||||||||
Level 1(1) (2) | |||||||||||||||||
Money market funds | $ | 18 | $ | 14 | $ | — | $ | 4 | |||||||||
Total level 1 | $ | 18 | $ | 14 | $ | — | $ | 4 | |||||||||
Level 2(2) (3) | |||||||||||||||||
Commercial paper | $ | 603 | $ | 255 | $ | 348 | $ | — | |||||||||
Corporate bonds | 76 | — | — | 76 | |||||||||||||
Total level 2 | $ | 679 | $ | 255 | $ | 348 | $ | 76 | |||||||||
Total | $ | 982 | $ | 554 | $ | 348 | $ | 80 | |||||||||
Total Fair | Cash and | Short-Term | Long-Term | ||||||||||||||
Value | Cash | Marketable | Marketable | ||||||||||||||
Equivalents | Securities | Securities | |||||||||||||||
(In millions) | |||||||||||||||||
December 28, 2013 | |||||||||||||||||
Cash | $ | 429 | $ | 429 | $ | — | $ | — | |||||||||
Level 1(1) (2) | |||||||||||||||||
Money market funds | $ | 21 | $ | 19 | $ | — | $ | 2 | |||||||||
Total level 1 | $ | 21 | $ | 19 | $ | — | $ | 2 | |||||||||
Level 2(2) (3) | |||||||||||||||||
Commercial paper | $ | 599 | $ | 421 | $ | 178 | $ | — | |||||||||
Time deposit | 50 | — | 50 | — | |||||||||||||
Corporate bonds | 88 | — | — | 88 | |||||||||||||
Total level 2 | $ | 737 | $ | 421 | $ | 228 | $ | 88 | |||||||||
Total | $ | 1,187 | $ | 869 | $ | 228 | $ | 90 | |||||||||
Financial Instruments Not Recorded at Fair Value on a Recurring Basis | ' | ||||||||||||||||
March 29, 2014 | December 28, 2013 | ||||||||||||||||
Carrying | Estimated | Carrying | Estimated | ||||||||||||||
Amount | Fair Value | Amount | Fair Value | ||||||||||||||
(In millions) | |||||||||||||||||
Short-term debt (excluding capital leases) | $ | 55 | $ | 55 | $ | 55 | $ | 55 | |||||||||
Long-term debt (excluding capital leases) | $ | 2,068 | $ | 2,132 | $ | 1,986 | $ | 2,132 | |||||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Operations | ' | ||||||||||||||||
Quarter Ended | |||||||||||||||||
March 29, | March 30, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
(In millions) | |||||||||||||||||
Foreign Currency Forward Contracts | |||||||||||||||||
Contracts designated as cash flow hedging instruments | |||||||||||||||||
Other comprehensive loss | $ | (1 | ) | $ | (2 | ) | |||||||||||
Research and development | (1 | ) | — | ||||||||||||||
Marketing, general and administrative | (1 | ) | — | ||||||||||||||
Contracts not designated as hedging instruments | |||||||||||||||||
Other expense, net | $ | (1 | ) | $ | (1 | ) | |||||||||||
Schedule of Derivative Instruments in Balance Sheet | ' | ||||||||||||||||
March 29, | December 28, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
(In millions) | |||||||||||||||||
Foreign Currency Forward Contracts | |||||||||||||||||
Contracts designated as cash flow hedging instruments | $ | (4 | ) | $ | (3 | ) | |||||||||||
Contracts not designated as hedging instruments | $ | — | $ | (1 | ) | ||||||||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 3 Months Ended | ||||||||
Mar. 29, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Schedule of Segment Reporting Information, by Segment | ' | ||||||||
Quarter Ended | |||||||||
March 29, | March 30, | ||||||||
2014 | 2013 | ||||||||
(In millions) | |||||||||
Net revenue: | |||||||||
Computing Solutions | $ | 663 | $ | 751 | |||||
Graphics and Visual Solutions | 734 | 337 | |||||||
Total net revenue | $ | 1,397 | $ | 1,088 | |||||
Operating income (loss): | |||||||||
Computing Solutions | $ | (3 | ) | $ | (39 | ) | |||
Graphics and Visual Solutions | 91 | 16 | |||||||
All Other | (39 | ) | (75 | ) | |||||
Total operating income (loss) | $ | 49 | $ | (98 | ) | ||||
StockBased_Incentive_Compensat1
Stock-Based Incentive Compensation Plans (Tables) | 3 Months Ended | ||||||||
Mar. 29, 2014 | |||||||||
Share-based Compensation [Abstract] | ' | ||||||||
Schedule of Stock-based Compensation Expense, Allocation of Recognized Period Costs | ' | ||||||||
Quarter Ended | |||||||||
March 29, | March 30, | ||||||||
2014 | 2013 | ||||||||
(In millions) | |||||||||
Cost of sales | $ | 1 | $ | 2 | |||||
Research and development | 12 | 13 | |||||||
Marketing, general and administrative | 10 | 9 | |||||||
Stock-based compensation expense, net of tax of $0 | $ | 23 | $ | 24 | |||||
Weighted Average Valuation Assumptions for Stock Options | ' | ||||||||
Quarter Ended | |||||||||
March 29, | March 30, | ||||||||
2014 | 2013 | ||||||||
Expected volatility | 55.03 | % | 60.97 | % | |||||
Risk-free interest rate | 1.06 | % | 0.61 | % | |||||
Expected dividends | 0 | % | 0 | % | |||||
Expected life | 3.86 years | 3.83 years | |||||||
Commitments_and_Contingencies_1
Commitments and Contingencies (Tables) | 3 Months Ended | ||||||||
Mar. 29, 2014 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||
Changes in Estimated Liability for Product Warranty | ' | ||||||||
Quarter Ended | |||||||||
March 29, | March 30, | ||||||||
2014 | 2013 | ||||||||
(In millions) | |||||||||
Beginning balance | $ | 17 | $ | 16 | |||||
New warranties issued | 8 | 6 | |||||||
Settlements | (9 | ) | (6 | ) | |||||
Changes in liability for pre-existing warranties, including expirations | 2 | (2 | ) | ||||||
Ending balance | $ | 18 | $ | 14 | |||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended | |||||||||||||||||||||
Mar. 29, 2014 | ||||||||||||||||||||||
Statement of Comprehensive Income [Abstract] | ' | |||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||||
March 29, | March 30, | |||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||
Unrealized gains (losses) on available-for-sale securities | Unrealized gains (losses) on cash flow hedges | Total | Unrealized gains (losses) on available-for-sale securities | Unrealized gains (losses) on cash flow hedges | Total | |||||||||||||||||
(In millions) | ||||||||||||||||||||||
Beginning balance | 1 | $ | (3 | ) | $ | (2 | ) | — | $ | (3 | ) | $ | (3 | ) | ||||||||
Unrealized losses arising during the period, net of tax effects | — | (3 | ) | (3 | ) | — | (1 | ) | (1 | ) | ||||||||||||
Reclassification adjustment for losses realized and included in net loss, net of tax effects | — | 2 | 2 | — | — | — | ||||||||||||||||
Total other comprehensive loss | — | (1 | ) | (1 | ) | — | (1 | ) | (1 | ) | ||||||||||||
Ending balance | 1 | $ | (4 | ) | $ | (3 | ) | — | $ | (4 | ) | $ | (4 | ) | ||||||||
GLOBALFOUNDRIES_Details
GLOBALFOUNDRIES (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | |||||
Mar. 29, 2014 | Mar. 30, 2013 | Mar. 29, 2014 | Jun. 29, 2013 | Dec. 29, 2012 | Dec. 29, 2012 | Mar. 29, 2014 | Mar. 29, 2014 | |
Third Amendment to the WSA | Third Amendment to the WSA | Third Amendment to the WSA | Third Amendment to the WSA | Fourth Amendment to WSA | Purchase Commitment for 2014 Calendar Year | |||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Date of amendment to the WSA | ' | ' | ' | ' | ' | 6-Dec-12 | 30-Mar-14 | ' |
Cash consideration for limited waiver of exclusivity to GF | ' | ' | ' | ' | ' | $320,000,000 | ' | ' |
Cash consideration for limited waiver of exclusivity to GF, paid | ' | ' | 200,000,000 | 40,000,000 | 80,000,000 | ' | ' | ' |
Lower of cost or market charge | ' | ' | ' | ' | ' | 273,000,000 | ' | ' |
Purchases from GF related to wafer manufacturing and research and development activities | 260,000,000 | 269,000,000 | ' | ' | ' | ' | ' | ' |
Purchase obligations from GF | ' | ' | ' | ' | ' | ' | ' | $1,200,000,000 |
Debt_Details_Narrative
Debt (Details) (Narrative) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Debt Instrument [Line Items] | ' | ' |
Loss on debt redemptions | $15 | $0 |
6.75% Senior Notes due 2019 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, issuance date | 26-Feb-14 | ' |
Debt instrument, face amount | 600 | ' |
Debt instrument, maturity date | 1-Mar-19 | ' |
Long-term debt, redemption terms | 'At any time (which may be more than once) before March 1, 2017, the Company may redeem up to 35% of the aggregate principal amount of the 6.75% Notes within 90 days of the closing of an equity offering with the net proceeds thereof at a redemption price not greater than 106.75% of the principal amount thereof, together with accrued and unpaid interest to but excluding the date of redemption. At any time (which may be more than once) before March 1, 2019, the Company may redeem some or all of the 6.75% Notes at a price equal to 100% of the principal amount, plus accrued and unpaid interest and a bmake wholeb premium (as set forth in the 6.75% Indenture). | ' |
Percentage of repurchase price over to principal amount | 101.00% | ' |
6.00% Convertible Senior Notes Due 2015 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Loss on debt redemptions | 10 | ' |
Long-term debt, gross | 42 | ' |
Long-term debt, net of discount | 41 | ' |
Debt instrument, unamortized discount | 1 | ' |
Repurchase of 6.00% Notes Pursuant to Tender Offer | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, increase (decrease), net | -423 | ' |
Repayments of debt, including accrued interest | 460 | ' |
Interest paid | 10 | ' |
Repurchase of 6.00% Notes in Open Market | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, increase (decrease), net | -64 | ' |
Repayments of debt, including accrued interest | 69 | ' |
Interest paid | 1 | ' |
8.125% Senior Notes Due 2017 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, increase (decrease), net | -48 | ' |
Repayments of debt, including accrued interest | 51 | ' |
Interest paid | 1 | ' |
Loss on debt redemptions | 5 | ' |
Long-term debt, gross | 452 | ' |
Long-term debt, net of discount | 427 | ' |
Debt instrument, unamortized discount | 25 | ' |
Revolving Credit Facility | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Line of credit facility, maximum borrowing capacity | $500 | ' |
Supplemental_Balance_Sheet_Inf2
Supplemental Balance Sheet Information (Details) (Inventories) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
In Millions, unless otherwise specified | ||
Raw materials | $29 | $30 |
Work in process | 650 | 727 |
Finished goods | 190 | 127 |
Total inventories, net | $869 | $884 |
Supplemental_Balance_Sheet_Inf3
Supplemental Balance Sheet Information (Details) (Property, Plant and Equipment) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
In Millions, unless otherwise specified | ||
Land and land improvements | $4 | $3 |
Buildings and leasehold improvements | 252 | 246 |
Equipment | 1,446 | 1,466 |
Construction in progress | 23 | 18 |
Property, plant and equipment, gross | 1,725 | 1,733 |
Accumulated depreciation and amortization | 1,388 | 1,387 |
Total property, plant and equipment, net | $337 | $346 |
Supplemental_Balance_Sheet_Inf4
Supplemental Balance Sheet Information (Details) (Other Assets) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
In Millions, unless otherwise specified | ||
Software technology and licenses | $260 | $280 |
Other | 113 | 106 |
Total other assets | $373 | $386 |
Supplemental_Balance_Sheet_Inf5
Supplemental Balance Sheet Information (Details) (Accrued and Other Current Liabilities) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
In Millions, unless otherwise specified | ||
Accrued compensation and benefits | $128 | $186 |
Marketing programs and advertising expenses | 143 | 150 |
Software technology and licenses payable | 56 | 27 |
Other accrued and current liabilities | 155 | 167 |
Total accrued and other current liabilities | $482 | $530 |
Net_Income_Loss_Per_Share_Deta
Net Income (Loss) Per Share (Details) (WCH Warrants) (WCH Warrant) | 3 Months Ended |
Mar. 29, 2014 | |
WCH Warrant | ' |
Class of Warrant or Right [Line Items] | ' |
Warrant, exercise date | 7-Mar-14 |
Warrant, exercised | 35,000,000 |
Warrant, common shares issued from cashless exercise | 34,906,166 |
Warrant, outstanding | 0 |
Net_Income_Loss_Per_Share_Deta1
Net Income (Loss) Per Share (Details) (Components of Basic and Diluted Income (Loss) Per Share) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Numerator | ' | ' |
Net loss | ($20) | ($146) |
Denominator | ' | ' |
Weighted-average shares outstanding, basic | 761 | 749 |
Basic net loss per share | ($0.03) | ($0.19) |
Diluted net loss per share | ($0.03) | ($0.19) |
Stock Options, Restricted Stock and Restricted Stock Units | ' | ' |
Denominator | ' | ' |
Anti-dilutive shares | 45 | 56 |
Financial_Instruments_Details_
Financial Instruments (Details) (Narrative) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
In Millions, unless otherwise specified | ||
Financial Instruments [Line Items] | ' | ' |
Noncurrent marketable securities, at fair value | $80 | $90 |
Money Market Funds | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Available-for-sale investments used as collateral | 18 | 18 |
Noncurrent marketable securities, at fair value | 4 | 2 |
Corporate Bonds | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Noncurrent marketable securities, at fair value | 76 | 88 |
Mutual Funds | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Restricted investments | $13 | $14 |
Financial_Instruments_Details_1
Financial Instruments (Details) (Schedule of Available-For-Sale Securities and Fair Value Measurements) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
In Millions, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cash and cash equivalents, at fair value | $554 | $869 |
Current marketable securities, at fair value | 348 | 228 |
Noncurrent marketable securities, at fair value | 80 | 90 |
Cash, cash equivalents and marketable securities, at fair value | 982 | 1,187 |
Foreign currency contracts, liability, at fair value | -4 | -4 |
Level 1 | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cash and cash equivalents, at fair value | 14 | 19 |
Current marketable securities, at fair value | 0 | 0 |
Noncurrent marketable securities, at fair value | 4 | 2 |
Cash, cash equivalents and marketable securities, at fair value | 18 | 21 |
Level 2 | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cash and cash equivalents, at fair value | 255 | 421 |
Current marketable securities, at fair value | 348 | 228 |
Noncurrent marketable securities, at fair value | 76 | 88 |
Cash, cash equivalents and marketable securities, at fair value | 679 | 737 |
Foreign currency contracts, liability, at fair value | -4 | -4 |
Cash | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cash and cash equivalents, at fair value | 285 | 429 |
Cash, cash equivalents and marketable securities, at fair value | 285 | 429 |
Money Market Funds | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cash and cash equivalents, at fair value | 14 | 19 |
Current marketable securities, at fair value | 0 | 0 |
Noncurrent marketable securities, at fair value | 4 | 2 |
Cash, cash equivalents and marketable securities, at fair value | 18 | 21 |
Other assets, at fair value | 18 | 18 |
Commercial Paper | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cash and cash equivalents, at fair value | 255 | 421 |
Current marketable securities, at fair value | 348 | 178 |
Noncurrent marketable securities, at fair value | 0 | ' |
Cash, cash equivalents and marketable securities, at fair value | 603 | 599 |
Time Deposits | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cash, cash equivalents and marketable securities, at fair value | ' | 50 |
Corporate Bonds | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Noncurrent marketable securities, at fair value | 76 | 88 |
Cash, cash equivalents and marketable securities, at fair value | 76 | 88 |
Mutual Funds | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Other assets, at fair value | $13 | $14 |
Financial_Instruments_Details_2
Financial Instruments (Details) (Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments not Recorded at Fair Value) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
In Millions, unless otherwise specified | ||
Financial Instrument [Line Items] | ' | ' |
Long-term debt (excluding capital leases), at carrying amount | $2,068 | $1,986 |
Long-term debt (excluding capital leases), at estimated fair value | 2,132 | 2,132 |
Reported Value Measurement [Member] | ' | ' |
Financial Instrument [Line Items] | ' | ' |
Short-term debt | 55 | 55 |
Estimate of Fair Value Measurement [Member] | ' | ' |
Financial Instrument [Line Items] | ' | ' |
Short-term debt | $55 | $55 |
Financial_Instruments_Details_3
Financial Instruments (Details) (Gain (Loss) from Hedging Transactions) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | ' | ' |
Research and development | ($279) | ($312) |
Marketing, general and administrative | -156 | -179 |
Other expense, net | -21 | -3 |
Contracts designated as cash flow hedging instruments | ' | ' |
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net [Abstract] | ' | ' |
Other comprehensive income (loss) | -1 | -2 |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | ' | ' |
Research and development | -1 | 0 |
Marketing, general and administrative | -1 | 0 |
Contracts not designated as hedging instruments | ' | ' |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | ' | ' |
Other expense, net | ($1) | ($1) |
Financial_Instruments_Details_4
Financial Instruments (Details) (Summary of Derivative Instruments) (Details) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
In Millions, unless otherwise specified | ||
Derivative [Line Items] | ' | ' |
Contracts designated as cash flow hedging instruments | ($4) | ($3) |
Contracts not designated as hedging instruments | 0 | -1 |
Notional amount of foreign currency fair value hedge derivatives | 118 | 124 |
Foreign currency derivative contracts, net | ($4) | ' |
Income_Taxes_Details_Narrative
Income Taxes (Details) (Narratives) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Income Taxes [Line Items] | ' | ' |
Provision (benefit) for income taxes | $2 | $2 |
Increase in gross unrecognized tax benefits | 1 | ' |
Gross unrecognized tax benefits | 53 | ' |
Unrecognized tax benefits, period increase (decrease) | -2 | ' |
Unrecognized tax benefits, decrease resulting from current period tax positions | 2 | ' |
Unrecognized tax benefits, estimated increase (decrease) over the next 12 months | -31 | ' |
Foreign Taxes in Profitable Locations | ' | ' |
Income Taxes [Line Items] | ' | ' |
Provision (benefit) for income taxes | 2 | 2 |
Other Comprehensive Income (Loss) | ' | ' |
Income Taxes [Line Items] | ' | ' |
Provision (benefit) for income taxes | ' | 1 |
Tax Benefits for Canadian Coop Tax Credits | ' | ' |
Income Taxes [Line Items] | ' | ' |
Provision (benefit) for income taxes | ' | ($1) |
Segment_Reporting_Details_Summ
Segment Reporting (Details) (Summary of Net Revenue and Operating Income (Loss) by Segment) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Segment Reporting Information [Line Items] | ' | ' |
Net revenue | $1,397 | $1,088 |
Operating income (loss) | 49 | -98 |
Computing Solutions | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net revenue | 663 | 751 |
Operating income (loss) | -3 | -39 |
Graphics and Visual Solutions | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net revenue | 734 | 337 |
Operating income (loss) | 91 | 16 |
All Other | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Operating income (loss) | ($39) | ($75) |
StockBased_Incentive_Compensat2
Stock-Based Incentive Compensation Plans (Details) (Narrative) (USD $) | 3 Months Ended | |
Mar. 29, 2014 | Mar. 30, 2013 | |
Stock options, shares granted | 60,000 | 1,327,000 |
Stock options, shares granted, weighted average estimated grant date fair value per share | $1.62 | $1.17 |
Restricted stock units, shares granted | 480,000 | 2,447,000 |
Restricted stock units, shares granted, weighted average grant date fair value | $3.80 | $2.69 |
StockBased_Incentive_Compensat3
Stock-Based Incentive Compensation Plans (Details) (Share-based Compensation, Allocation of Recognized Period Costs) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Stock-based compensation expense | $23 | $24 |
Cost of Sales | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Stock-based compensation expense | 1 | 2 |
Research and Development | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Stock-based compensation expense | 12 | 13 |
Marketing, General and Administrative | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Stock-based compensation expense | $10 | $9 |
StockBased_Incentive_Compensat4
Stock-Based Incentive Compensation Plans (Details) (Weighted-average Valuation Assumptions) | 3 Months Ended | |
Mar. 29, 2014 | Mar. 30, 2013 | |
Stock Options, Valuation Assumptions [Line Items] | ' | ' |
Expected volatility | 55.03% | 60.97% |
Risk-free interest rate | 1.06% | 0.61% |
Expected dividends | 0.00% | 0.00% |
Expected life | '3 years 10 months 10 days | '3 years 10 months 0 days |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details) (Schedule of Changes in Product Warranty Liability) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Changes in Product Warranty Liability [Roll Forward] | ' | ' |
Beginning balance | $17 | $16 |
New warranties issued | 8 | 6 |
Settlements | -9 | -6 |
Changes in liability for pre-existing warranties, including expirations | 2 | -2 |
Ending balance | $18 | $14 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (Details) (Schedule of Accumulated Other Comprehensive Income (Loss)) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Unrealized gains (losses) on available-for-sale securities: | ' | ' |
Beginning Balance | $1 | $0 |
Unrealized losses arising during the period, net of tax effects | 0 | 0 |
Reclassification adjustment for losses realized and included in net loss, net of tax effects | 0 | 0 |
Total other comprehensive loss | 0 | 0 |
Ending Balance | 1 | 0 |
Unrealized gains (losses) on cash flow hedges: | ' | ' |
Beginning balance | -3 | -3 |
Unrealized losses arising during the period, net of tax effects | -3 | -1 |
Reclassification adjustment for losses realized and included in net loss, net of tax effects | 2 | 0 |
Total other comprehensive loss | -1 | -1 |
Ending balance | -4 | -4 |
Total: | ' | ' |
Beginning balance | -2 | -3 |
Unrealized losses arising during the period, net of tax effects | -3 | -1 |
Reclassification adjustment for losses realized and included in net loss, net of tax effects | 2 | 0 |
Total other comprehensive loss | -1 | -1 |
Ending balance | ($3) | ($4) |