Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 27, 2014 | Oct. 27, 2014 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 27-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
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 | ' | 775,340,409 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 |
Net revenue | $1,429 | $1,461 | $4,267 | $3,710 |
Cost of sales | 935 | 940 | 2,788 | 2,285 |
Gross margin | 494 | 521 | 1,479 | 1,425 |
Research and development | 278 | 288 | 834 | 908 |
Marketing, general and administrative | 150 | 155 | 460 | 505 |
Amortization of acquired intangible assets | 3 | 5 | 10 | 14 |
Restructuring and other special charges (gains), net | 0 | -22 | 0 | 30 |
Operating income (loss) | 63 | 95 | 175 | -32 |
Interest income | 1 | 1 | 2 | 4 |
Interest expense | -43 | -47 | -136 | -133 |
Other income (expense), net | -2 | 2 | -72 | -3 |
Income (loss) before income taxes | 19 | 51 | -31 | -164 |
Provision for income taxes | 2 | 3 | 8 | 8 |
Net income (loss) | $17 | $48 | ($39) | ($172) |
Net income (loss) per share | ' | ' | ' | ' |
Basic net income (loss) per share | $0.02 | $0.06 | ($0.05) | ($0.23) |
Diluted net income (loss) per share | $0.02 | $0.06 | ($0.05) | ($0.23) |
Shares used in per share calculation: | ' | ' | ' | ' |
Basic | 770 | 757 | 765 | 753 |
Diluted | 785 | 764 | 765 | 753 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 |
Net income (loss) | $17 | $48 | ($39) | ($172) |
Unrealized gains (losses) on cash flow hedges: | ' | ' | ' | ' |
Unrealized gains (losses) arising during the period, net of tax effects of $(1), $0, $0 and $(2) | -3 | 3 | -3 | 0 |
Reclassification adjustment for (gains) losses realized and included in net income (loss), net of tax effects of zero | 1 | 1 | 4 | 1 |
Total other comprehensive income (loss) | -2 | 4 | 1 | 1 |
Total comprehensive income (loss) | $15 | $52 | ($38) | ($171) |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 |
Tax effect related to unrealized gains (losses) on cash flow hedges: | ' | ' | ' | ' |
Unrealized gains (losses) arising during period | ($1) | $0 | $0 | ($2) |
Reclassification adjustment for (gains) losses realized and included in net income (loss) | $0 | $0 | $0 | $0 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 27, 2014 | Dec. 28, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $640 | $869 |
Marketable securities | 298 | 228 |
Accounts receivable, net of allowances of $0 and $0 | 973 | 832 |
Inventories, net | 897 | 884 |
Prepaid expenses and other current assets | 212 | 71 |
Total current assets | 3,020 | 2,884 |
Long-term marketable securities | 0 | 90 |
Property, plant and equipment, net | 328 | 346 |
Acquisition related intangible assets, net | 69 | 78 |
Goodwill | 553 | 553 |
Other assets | 355 | 386 |
Total assets | 4,325 | 4,337 |
Current liabilities: | ' | ' |
Short-term debt | 102 | 60 |
Accounts payable | 498 | 519 |
Payable to GLOBALFOUNDRIES | 317 | 364 |
Accrued and other current liabilities | 555 | 530 |
Deferred income on shipments to distributors | 94 | 145 |
Total current liabilities | 1,566 | 1,618 |
Long-term debt | 2,106 | 1,998 |
Other long-term liabilities | 118 | 177 |
Capital stock: | ' | ' |
Common stock, par value $0.01; 1,500 shares authorized on September 27, 2014 and December 28, 2013; shares issued: 787 shares on September 27, 2014 and 735 shares on December 28, 2013; shares outstanding: 775 shares on September 27, 2014 and 725 shares on December 28, 2013 | 8 | 7 |
Additional paid-in capital | 6,928 | 6,894 |
Treasury stock, at cost (12 shares on September 27, 2014 and 10 shares on December 28, 2013) | -118 | -112 |
Accumulated deficit | -6,282 | -6,243 |
Accumulated other comprehensive loss | -1 | -2 |
Total stockholders' equity | 535 | 544 |
Total liabilities and stockholders' equity | $4,325 | $4,337 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 27, 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 | 787 | 735 |
Common stock, shares outstanding | 775 | 725 |
Treasury stock, shares | 12 | 10 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 |
Cash flows from operating activities: | ' | ' |
Net loss | ($39) | ($172) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Depreciation and amortization | 155 | 182 |
Net loss on disposal of property, plant and equipment | 0 | 30 |
Stock-based compensation expense | 65 | 67 |
Non-cash interest expense | 11 | 18 |
Loss on debt redemptions | 64 | 0 |
Other | -9 | 1 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | -144 | -242 |
Inventories | -14 | -360 |
Prepaid expenses and other assets | -156 | -85 |
Payable to GLOBALFOUNDRIES | -47 | 41 |
Accounts payable, accrued liabilities and other | -100 | 351 |
Net cash used in operating activities | -214 | -169 |
Cash flows from investing activities: | ' | ' |
Purchases of available-for-sale securities | -646 | -985 |
Purchases of property, plant and equipment | -73 | -63 |
Proceeds from sales and maturities of available-for-sale securities | 664 | 969 |
Proceeds from sale of property, plant, and equipment | 0 | 238 |
Net cash provided by (used in) investing activities | -55 | 159 |
Cash flows from financing activities: | ' | ' |
Proceeds from issuance of common stock | 4 | 3 |
Proceeds from borrowings, net | 1,080 | 0 |
Net proceeds from grants | 5 | 6 |
Repayments of long-term debt and capital lease obligations | -1,043 | -4 |
Other | -6 | -1 |
Net cash provided by financing activities | 40 | 4 |
Net decrease in cash and cash equivalents | -229 | -6 |
Cash and cash equivalents at beginning of period | 869 | 549 |
Cash and cash equivalents at end of period | $640 | $543 |
Basis_of_Presentation_and_Sign
Basis of Presentation and Significant Accounting Policies (Notes) | 9 Months Ended |
Sep. 27, 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 (U.S. GAAP) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. The results of operations for the quarter and nine months ended September 27, 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 and nine months ended September 27, 2014 and September 28, 2013 each consisted of 13 and 39 weeks, respectively. | |
Principles of Consolidation. The condensed consolidated financial statements include the Company’s accounts and those of its wholly-owned subsidiaries. Upon consolidation, all significant intercompany accounts and transactions are eliminated. | |
Change to Prior Period Information. During the third quarter of 2014, the Company realigned its organizational structure. As a result of this organizational change, beginning in third quarter of 2014, the Company is reporting its financial statements based on the new segments described in Note 8 - Segment Reporting with no other impact on the Company’s condensed consolidated financial statements. All prior-period amounts have been adjusted retrospectively to reflect the Company's reportable segment changes. | |
Impairment of Goodwill. In accordance with Accounting Standards Codification (ASC) 350, “Goodwill and Other Intangible Assets,” the Company applies a fair value based impairment test to the net book value of goodwill as of the first day of the fourth quarter of each year and, if certain events or circumstances indicate that an impairment loss may have been incurred, on an interim basis. The analysis of potential impairment of goodwill requires a two-step process. The first step of the impairment test is to compare the fair value of each reporting unit to its carrying value. If step one indicates that impairment potentially exists, the second step is performed to measure the amount of impairment, if any. Goodwill impairment exists when the estimated fair value of goodwill is less than its carrying value. | |
The Company’s realignment of its organizational structure, effective July 1, 2014, caused a change in the composition of its reportable segments and reporting units. This represented a change in circumstance requiring an interim goodwill impairment analysis and the reassignment of the goodwill to the new reporting units using a relative fair value approach. The Company completed this goodwill impairment analysis during the third quarter of 2014. For purposes of this analysis, the Company’s estimates of fair value were based on the income approach, which estimates the fair value of the Company’s reporting units based on future discounted cash flows. The Company determined that each reporting unit's estimated fair value exceeded its carrying value, indicating that there was no goodwill impairment. The Company will perform its annual goodwill impairment as of the first day of the fourth quarter of 2014. | |
Recently Issued Accounting Standards | |
Disclosure of Going Concern Uncertainties. In August 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (ASU 2014-15), which provides guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and to provide related footnote disclosures. ASU 2014-15 will be effective in the fourth quarter of 2016, with early adoption permitted. The Company is currently evaluating the impact of its pending adoption of ASU 2014-15 on its condensed consolidated financial statements. | |
Share-Based Payments with Performance Targets. In June 2014, the FASB issued Accounting Standards Update No. 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (ASU 2014-12), which requires that a performance target be treated as a performance condition if it affects vesting and could be achieved after the requisite service period is rendered. ASU 2014-12 will be effective in the first quarter of 2016, with early adoption permitted. The Company may use either of two methods: (i) prospective application to all awards granted or modified after the effective date or (ii) retrospective application to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter, with the cumulative effect of applying ASU 2014-12 as an adjustment to the opening retained earnings balance as of the beginning of the earliest annual period presented in the financial statements. The Company is currently evaluating the impact of its pending adoption of ASU 2014-12 on its condensed consolidated financial statements and has not yet determined which method it will apply. | |
Revenue Recognition. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers: Topic 606 (ASU 2014-09), which creates a single source of revenue guidance under U.S. GAAP for all companies in all industries. The core principle of ASU 2014-09 is that revenue should be recognized in a manner that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 defines a five-step process in order to achieve this core principle, which may require the use of judgment and estimates. ASU 2014-09 also requires expanded qualitative and quantitative disclosures relating to the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers, including significant judgments and estimates used. ASU 2014-09 will be effective for the Company in the first quarter of 2017 and early adoption is not permitted. The Company may adopt ASU 2014-09 either by using a full retrospective approach for all periods presented in the period of adoption or a modified retrospective approach. The Company is currently evaluating the impact of its pending adoption of ASU 2014-09 on its condensed consolidated financial statements and has not yet determined which approach it will apply. |
GLOBALFOUNDRIES_Notes
GLOBALFOUNDRIES (Notes) | 9 Months Ended |
Sep. 27, 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 accelerated processing unit (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 for the quarters ended September 27, 2014 and September 28, 2013 were $290 million and $221 million, respectively. The Company’s total purchases from GF related to wafer manufacturing and research and development activities for the nine months ended September 27, 2014 and September 28, 2013 were $843 million and $746 million, respectively. | |
At September 27, 2014, the Company had prepayments to GF of $128 million related to wafer purchases, which were included in prepaid expenses and other current assets on the Company’s condensed consolidated balance sheets. | |
The Company currently estimates that its wafer purchase obligation from GF will be approximately $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) | 9 Months Ended | ||
Sep. 27, 2014 | |||
Debt Disclosure [Abstract] | ' | ||
Debt | ' | ||
Debt | |||
7.00% Senior Notes Due 2024 | |||
On June 16, 2014, the Company issued $500 million of 7.00% Senior Notes due 2024 (7.00% Notes). The 7.00% Notes are general unsecured senior obligations of the Company. Interest is payable on January 1 and July 1 of each year beginning January 1, 2015 until the maturity date of July 1, 2024. The 7.00% Notes are governed by the terms of an indenture (the 7.00% Indenture) dated June 16, 2014 between the Company and Wells Fargo Bank, National Association, as trustee. | |||
At any time before July 1, 2017, the Company may redeem up to 35% of the aggregate principal amount of the 7.00% Notes within 90 days of the closing of an equity offering with the net proceeds thereof at a redemption price equal to 107.000% of the principal amount thereof, together with accrued and unpaid interest to but excluding the date of redemption. Prior to July 1, 2019, the Company may redeem some or all of the 7.00% 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 7.00% Indenture). | |||
Starting July 1, 2019, the Company may redeem the 7.00% Notes for cash at the following specified prices plus accrued and unpaid interest: | |||
Period | Price as | ||
Percentage of | |||
Principal Amount | |||
Beginning on July 1, 2019 through June 30, 2020 | 103.5 | % | |
Beginning on July 1, 2020 through June 30, 2021 | 102.333 | % | |
Beginning on July 1, 2021 through June 30, 2022 | 101.167 | % | |
On July 1, 2022 and thereafter | 100 | % | |
Holders have the right to require the Company to repurchase all or a portion of the 7.00% Notes in the event that the Company undergoes a change of control, as defined in the 7.00% 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 7.00% Indenture) may result in the acceleration of the maturity of the 7.00% Notes. | |||
The 7.00% 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 7.00% 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 7.00% 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. | |||
The Company may elect to purchase or otherwise retire the 7.00% 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. | |||
6.75% 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 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 the 6.75% Notes in the event that the Company undergoes a change of control, as defined in the 6.75% Indenture, at a 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. | |||
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. | |||
During the second quarter of 2014, the Company repurchased and redeemed the remaining $452 million in aggregate principal amount of the 8.125% Notes for $480 million, which included payment of accrued and unpaid interest of $7 million. The Company incurred a total loss of $49 million in connection with the foregoing repurchase and redemption of the 8.125% Notes. As of the end of the second quarter of 2014, the Company did not have any 8.125% Notes outstanding. | |||
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 the 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 September 27, 2014, the outstanding aggregate principal amount and remaining carrying value of the 6.00% Notes were $42 million. The remaining $42 million of aggregate principal amount of 6.00% Notes has been reclassified as short-term debt on the condensed consolidated balance sheet as of September 27, 2014. | |||
The agreements governing the Company's 6.00% Notes, 6.75% Notes, 7.00% Notes, 7.50% Senior Notes due 2022 (7.50% Notes), 7.75% Senior Notes due 2020 (7.75% Notes) 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, which would have a material adverse effect on us. | |||
Subsequent to September 27, 2014, the Company repurchased $50 million in principal amount of its 7.75% Notes and $17 million in principal amount of the 7.50% Notes. |
Supplemental_Balance_Sheet_Inf
Supplemental Balance Sheet Information (Notes) | 9 Months Ended | |||||||
Sep. 27, 2014 | ||||||||
Balance Sheet Related Disclosures [Abstract] | ' | |||||||
Supplemental Balance Sheet Information | ' | |||||||
Supplemental Balance Sheet Information | ||||||||
Inventories | ||||||||
September 27, | December 28, | |||||||
2014 | 2013 | |||||||
(In millions) | ||||||||
Raw materials | $ | 36 | $ | 30 | ||||
Work in process | 648 | 727 | ||||||
Finished goods | 213 | 127 | ||||||
Total inventories, net | $ | 897 | $ | 884 | ||||
Prepaid Expenses and Other Current Assets | ||||||||
September 27, | December 28, | |||||||
2014 | 2013 | |||||||
(In millions) | ||||||||
Prepayments to GF | $ | 128 | $ | — | ||||
Other prepaid expenses and other current assets | 84 | 71 | ||||||
Total prepaid expenses and other current assets | $ | 212 | $ | 71 | ||||
Property, Plant and Equipment | ||||||||
September 27, | December 28, | |||||||
2014 | 2013 | |||||||
(In millions) | ||||||||
Land and land improvements | $ | 4 | $ | 3 | ||||
Buildings and leasehold improvements | 252 | 246 | ||||||
Equipment | 1,450 | 1,466 | ||||||
Construction in progress | 34 | 18 | ||||||
1,740 | 1,733 | |||||||
Accumulated depreciation and amortization | (1,412 | ) | (1,387 | ) | ||||
Total property, plant and equipment, net | $ | 328 | $ | 346 | ||||
Other Assets | ||||||||
September 27, | December 28, | |||||||
2014 | 2013 | |||||||
(In millions) | ||||||||
Software and technology licenses | $ | 238 | $ | 280 | ||||
Other | 117 | 106 | ||||||
Total other assets | $ | 355 | $ | 386 | ||||
Accrued and Other Current Liabilities | ||||||||
September 27, | December 28, | |||||||
2014 | 2013 | |||||||
(In millions) | ||||||||
Accrued compensation and benefits | $ | 178 | $ | 186 | ||||
Marketing programs and advertising expenses | 132 | 150 | ||||||
Software and technology licenses payable | 63 | 27 | ||||||
Other accrued and current liabilities | 182 | 167 | ||||||
Total accrued and other current liabilities | $ | 555 | $ | 530 | ||||
Net_Income_Loss_Per_Share_Note
Net Income (Loss) Per Share (Notes) | 9 Months Ended | ||||||||||||||||
Sep. 27, 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 prior to the exercise of the warrant. | |||||||||||||||||
Diluted net income (loss) per share is computed based on the weighted average number of shares outstanding plus any potentially dilutive shares outstanding. Potentially dilutive shares include stock options, restricted stock and restricted stock units. | |||||||||||||||||
The following table sets forth the components of basic and diluted income (loss) per share: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(In millions, except per share amounts) | |||||||||||||||||
Numerator – Net income (loss): | |||||||||||||||||
Numerator for basic and diluted net income (loss) per share | $ | 17 | $ | 48 | $ | (39 | ) | $ | (172 | ) | |||||||
Denominator – Weighted average shares | |||||||||||||||||
Denominator for basic net income (loss) per share | 770 | 757 | 765 | 753 | |||||||||||||
Effect of potentially dilutive shares: | |||||||||||||||||
Employee stock options, restricted stock and restricted stock units | 15 | 7 | — | — | |||||||||||||
Denominator for diluted net income (loss) per share | 785 | 764 | 765 | 753 | |||||||||||||
Net income (loss) per share: | |||||||||||||||||
Basic | $ | 0.02 | $ | 0.06 | $ | (0.05 | ) | $ | (0.23 | ) | |||||||
Diluted | $ | 0.02 | $ | 0.06 | $ | (0.05 | ) | $ | (0.23 | ) | |||||||
Potential shares from employee stock options, restricted stock and restricted stock units totaling 28 million and 53 million were not included in the net income per share calculations for the quarters ended September 27, 2014 and September 28, 2013, respectively, because their inclusion would have been anti-dilutive. | |||||||||||||||||
Potential shares from employee stock options, restricted stock and restricted stock units totaling 46 million and 61 million were not included in the net loss per share calculations for the nine months ended September 27, 2014 and September 28, 2013, respectively, because their inclusion would have been anti-dilutive. |
Financial_Instruments_Notes
Financial Instruments (Notes) | 9 Months Ended | ||||||||||||||||
Sep. 27, 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 September 27, 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) | |||||||||||||||||
September 27, 2014 | |||||||||||||||||
Cash | $ | 362 | $ | 362 | $ | — | $ | — | |||||||||
Level 1(1) (2) | |||||||||||||||||
Money market funds | $ | 27 | $ | 27 | $ | — | $ | — | |||||||||
Total level 1 | $ | 27 | $ | 27 | $ | — | $ | — | |||||||||
Level 2(2) (3) | |||||||||||||||||
Commercial paper | $ | 504 | $ | 251 | $ | 253 | $ | — | |||||||||
Corporate bonds | 45 | — | 45 | — | |||||||||||||
Total level 2 | $ | 549 | $ | 251 | $ | 298 | $ | — | |||||||||
Total | $ | 938 | $ | 640 | $ | 298 | $ | — | |||||||||
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 deposits | 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 and nine months ended September 27, 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 were 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 validated, 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 September 27, 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 September 27, 2014 and December 28, 2013, the Company had approximately $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 costs 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 September 27, 2014 and December 28, 2013, the Company had approximately $15 million and $14 million of available-for-sale investments in mutual funds held in a Rabbi trust established for the Company's deferred compensation plan, which were included in Other Assets on the Company's condensed consolidated balance sheets. 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 and nine months ended September 27, 2014 or during the quarter ended September 28, 2013. During the nine months ended September 28, 2013, the Company did not realize any gain or loss on sales of available-for-sale securities of $14 million. The cost of securities sold is determined based on the specific identification method. | |||||||||||||||||
During the nine months ended September 27, 2014, the Company reclassified $45 million of its marketable securities that were previously classified as long-term to short-term. At September 27, 2014, the Company had no investments that were classified as long-term marketable securities. At December 28, 2013, $90 million of investments were classified as long-term marketable securities. | |||||||||||||||||
All contractual maturities of the Company’s available-for-sale marketable debt securities as of September 27, 2014 were within 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: | |||||||||||||||||
September 27, 2014 | December 28, 2013 | ||||||||||||||||
Carrying | Estimated | Carrying | Estimated | ||||||||||||||
Amount | Fair Value | Amount | Fair Value | ||||||||||||||
(In millions) | |||||||||||||||||
Short-term debt (excluding capital leases) | $ | 97 | $ | 98 | $ | 55 | $ | 55 | |||||||||
Long-term debt (excluding capital leases) | $ | 2,100 | $ | 2,149 | $ | 1,986 | $ | 2,132 | |||||||||
The Company’s short-term and long-term debt are classified within Level 2. The fair value of the debt 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 | |||||||||||||||||
Cash Flow Hedges | |||||||||||||||||
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 statements of operations: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(In millions) | |||||||||||||||||
Foreign Currency Forward Contracts | |||||||||||||||||
Contracts designated as cash flow hedging instruments | |||||||||||||||||
Other comprehensive income (loss) | $ | (3 | ) | $ | 3 | $ | 1 | $ | (1 | ) | |||||||
Research and development | — | (1 | ) | (2 | ) | (1 | ) | ||||||||||
Marketing, general and administrative | (1 | ) | — | (2 | ) | — | |||||||||||
Contracts not designated as hedging instruments | |||||||||||||||||
Other income (expense), net | $ | (2 | ) | $ | 1 | $ | (2 | ) | $ | (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 Company's condensed consolidated balance sheets as follows: | |||||||||||||||||
September 27, | December 28, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
(In millions) | |||||||||||||||||
Foreign Currency Forward Contracts | |||||||||||||||||
Contracts designated as cash flow hedging instruments | $ | (2 | ) | $ | (3 | ) | |||||||||||
Contracts not designated as hedging instruments | $ | (1 | ) | $ | (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 September 27, 2014 and December 28, 2013, the notional values of the Company’s outstanding foreign currency forward contracts were $211 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 September 27, 2014, the Company’s outstanding contracts were in a net loss position of $3 million. | |||||||||||||||||
Fair Value Hedges | |||||||||||||||||
In the third quarter of 2014, the Company entered into fixed-to-floating interest rate swaps on a notional amount of $250 million to hedge a portion of the Company’s 6.75% Notes. The purpose of these swaps is to manage a portion of the Company's exposure to interest rate risk by converting fixed rate interest payments to floating rate interest payments. The swaps effectively converted a portion of the fixed interest payments payable on the 6.75% Notes into variable interest payments based on LIBOR. The interest rate swaps are designated as a fair value hedge. Because the specific terms and notional amount of the swaps are intended to match the portion of the 6.75% Notes being hedged, it is assumed to be a highly effective hedge. Accordingly, changes in the fair value of the interest rate swaps are exactly offset by changes in the fair value of the 6.75% Notes. All changes in fair value of the swaps are recorded on the Company’s condensed consolidated balance sheets with no net impact to the Company's condensed consolidated statements of operations. | |||||||||||||||||
The Company’s fair value hedge 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. | |||||||||||||||||
The following table shows the fair value amounts included in long-term other assets should the fair value hedge derivative contracts be in a gain position or included in other long-term liabilities should these contracts be in a loss position. These amounts were recorded in the Company’s condensed consolidated balance sheets as follows: | |||||||||||||||||
September 27, | December 28, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
(In millions) | |||||||||||||||||
Interest Rate Swap Contracts | |||||||||||||||||
Contracts designated as fair value hedging instruments | $ | (1 | ) | $ | — | ||||||||||||
Income_Taxes_Notes
Income Taxes (Notes) | 9 Months Ended |
Sep. 27, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
In the third quarter of 2014, the Company recorded an income tax provision of $2 million, consisting of $2 million of foreign taxes in profitable locations. For the nine months ended September 27, 2014, the Company recorded an income tax provision of $8 million, arising from $9 million of foreign taxes in profitable locations, partially offset by $1 million of tax benefits arising from other comprehensive income and Canadian tax credits. | |
In the third quarter of 2013, the Company recorded an income tax provision of $3 million, consisting of $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. For the nine months ended September 28, 2013, the Company recorded an income tax provision of $8 million, arising from $7 million of foreign taxes in profitable locations and $3 million related to the reversal of previously recognized tax benefits associated with other comprehensive income, partially offset by $2 million of tax benefits for Canadian tax credits and monetization of U.S. tax credits. | |
As of September 27, 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 September 27, 2014, in management’s estimate, is not more likely than not to be achieved. | |
The Company’s total gross unrecognized tax benefits as of September 27, 2014 were $61 million. The Company currently expects to reduce its unrecognized tax benefits by approximately $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) | 9 Months Ended | ||||||||||||||||
Sep. 27, 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 revenue 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. In connection with the Company’s continued strategic transformation, effective July 1, 2014, the Company realigned its organizational structure. As a result of this organizational change, the Company has the following two reportable segments: | |||||||||||||||||
• | the Computing and Graphics segment, which primarily includes desktop and notebook processors | ||||||||||||||||
and chipsets, discrete graphics processing units (GPUs) and professional graphics; and | |||||||||||||||||
• | the Enterprise, Embedded and Semi-Custom segment, which primarily includes server and | ||||||||||||||||
embedded processors, dense servers, semi-custom System-on-Chip (SoC) products, engineering services | |||||||||||||||||
and royalties. | |||||||||||||||||
Effective October 8, 2014, Dr. Lisa T. Su became the Company's Chief Executive Officer, succeeding Rory P. Read. This management change did not result in a change in the Company's reportable segments or to the fact that the Chief Operating Decision Maker is the Chief Executive Officer. | |||||||||||||||||
In addition to these reportable segments, the Company has an All Other category, which is not a reportable segment. This category primarily includes certain expenses and credits that are not allocated to any of the reportable segments because management does not consider these expenses and credits in evaluating the performance of the reportable segments. Also included in this category are amortization of acquired intangible assets, employee stock-based compensation expense, net, restructuring and other special charges (gains) 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, the prior period results have been restated to reflect the Company's new reportable segments: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(In millions) | |||||||||||||||||
Net revenue: | |||||||||||||||||
Computing and Graphics | $ | 781 | $ | 925 | $ | 2,470 | $ | 2,832 | |||||||||
Enterprise, Embedded and Semi-Custom | 648 | 536 | 1,797 | 878 | |||||||||||||
Total net revenue | $ | 1,429 | $ | 1,461 | $ | 4,267 | $ | 3,710 | |||||||||
Operating income (loss): | |||||||||||||||||
Computing and Graphics | $ | (17 | ) | $ | 9 | $ | (20 | ) | $ | (86 | ) | ||||||
Enterprise, Embedded and Semi-Custom | 108 | 92 | 290 | 166 | |||||||||||||
All Other | (28 | ) | (6 | ) | (95 | ) | (112 | ) | |||||||||
Total operating income (loss) | $ | 63 | $ | 95 | $ | 175 | $ | (32 | ) | ||||||||
StockBased_Incentive_Compensat
Stock-Based Incentive Compensation Plans (Notes) | 9 Months Ended | ||||||||||||||||
Sep. 27, 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: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(In millions) | |||||||||||||||||
Cost of sales | $ | 1 | $ | 1 | $ | 3 | $ | 4 | |||||||||
Research and development | 11 | 12 | 34 | 35 | |||||||||||||
Marketing, general and administrative | 9 | 10 | 28 | 28 | |||||||||||||
Stock-based compensation expense, net of tax of $0 | $ | 21 | $ | 23 | $ | 65 | $ | 67 | |||||||||
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: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Expected volatility | 51.94 | % | 57.98 | % | 52.88 | % | 58.71 | % | |||||||||
Risk-free interest rate | 1.16 | % | 1.05 | % | 1.11 | % | 0.75 | % | |||||||||
Expected dividends | 0 | % | 0 | % | 0 | % | 0 | % | |||||||||
Expected life | 3.86 years | 3.83 years | 3.86 years | 3.83 years | |||||||||||||
For the quarters ended September 27, 2014 and September 28, 2013, the Company granted 5,562,000 and 4,647,000 employee stock options, respectively, with weighted average grant date fair value per share of $1.59 and $1.62, respectively. For the nine months ended September 27, 2014 and September 28, 2013, the Company granted 5,716,000 and 5,974,000 employee stock options, respectively, with weighted average grant date fair values per share of $1.59 and $1.52, respectively. | |||||||||||||||||
Restricted Stock and Restricted Stock Units | |||||||||||||||||
For the quarters ended September 27, 2014 and September 28, 2013, the Company granted 17,736,000 and 8,702,000 restricted stock units, respectively, with weighted average grant date fair values per share of $4.12 and $3.89, respectively. For the nine months ended September 27, 2014 and September 28, 2013, the Company granted 19,905,000 and 25,299,000 restricted stock units, respectively, with weighted average grant date fair values per share of $4.11 and $3.78, respectively. | |||||||||||||||||
Performance-based Restricted Stock Units | |||||||||||||||||
For the quarters ended September 27, 2014 and September 28, 2013, the Company granted 2,890,000 and 2,450,000 performance-based restricted stock units (the pRSUs), respectively, to senior executives of the Company. Each pRSU award reflects a target number of shares that may be issued to the award recipient, which may be adjusted based on the Company’s financial performance. 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 and total shareholder return (TSR) relative to the S&P 500 IT Sector over the same 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 granted for the quarters ended September 27, 2014 and September 28, 2013 was $4.36 and $4.07, respectively. The following weighted-average assumptions, in addition to projections of market conditions, were used to measure the weighted-average fair value: | |||||||||||||||||
Three Months Ended | |||||||||||||||||
September 27, | September 28, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Expected volatility | 46.68 | % | 57.46 | % | |||||||||||||
Risk-free interest rate | 0.24 | % | 0.2 | % | |||||||||||||
Expected dividends | 0 | % | 0 | % | |||||||||||||
Expected life | 1.39 years | 1.44 years | |||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Notes) | 9 Months Ended | ||||||||||||||||
Sep. 27, 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 and nine months ended September 27, 2014 and September 28, 2013 were as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(In millions) | |||||||||||||||||
Beginning balance | $ | 19 | $ | 14 | $ | 17 | $ | 16 | |||||||||
New warranties issued | 6 | 7 | 22 | 19 | |||||||||||||
Settlements | (9 | ) | (6 | ) | (28 | ) | (17 | ) | |||||||||
Changes in liability for pre-existing warranties, including expirations | 3 | — | 8 | (3 | ) | ||||||||||||
Ending balance | $ | 19 | $ | 15 | $ | 19 | $ | 15 | |||||||||
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 April 4, 2011 through October 18, 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) | 9 Months Ended | |||||||||||||||||||||||
Sep. 27, 2014 | ||||||||||||||||||||||||
Statement of Comprehensive Income [Abstract] | ' | |||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||
The tables below summarize the changes in accumulated other comprehensive income (loss) by component for the quarters and nine months ended September 27, 2014 and September 28, 2013. | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
September 27, | September 28, | |||||||||||||||||||||||
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 | $ | — | $ | 1 | $ | — | $ | (6 | ) | $ | (6 | ) | ||||||||||
Unrealized gains (losses) arising during the period, net of tax effects | — | (3 | ) | (3 | ) | — | 3 | 3 | ||||||||||||||||
Reclassification adjustment for (gains) losses realized and included in net income (loss), net of tax effects | — | 1 | 1 | — | 1 | 1 | ||||||||||||||||||
Total other comprehensive income (loss) | — | (2 | ) | (2 | ) | — | 4 | 4 | ||||||||||||||||
Ending balance | $ | 1 | $ | (2 | ) | $ | (1 | ) | $ | — | $ | (2 | ) | $ | (2 | ) | ||||||||
Nine Months Ended | ||||||||||||||||||||||||
September 27, | September 28, | |||||||||||||||||||||||
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 gains (losses) arising during the period, net of tax effects | — | (3 | ) | (3 | ) | — | — | — | ||||||||||||||||
Reclassification adjustment for (gains) losses realized and included in net income (loss), net of tax effects | — | 4 | 4 | — | 1 | 1 | ||||||||||||||||||
Total other comprehensive income (loss) | — | 1 | 1 | — | 1 | 1 | ||||||||||||||||||
Ending balance | $ | 1 | $ | (2 | ) | $ | (1 | ) | $ | — | $ | (2 | ) | $ | (2 | ) | ||||||||
Subsequent_Events_Notes
Subsequent Events (Notes) | 9 Months Ended |
Sep. 27, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Events | |
In October 2014, the Company announced a restructuring plan (the 2014 Restructuring Plan). Under the 2014 Restructuring Plan, the Company expects to reduce global headcount by approximately 7 percent, largely expected to be completed by the end of the fourth quarter of 2014, and to align its real estate footprint with its reduced headcount, largely expected to be completed by the end of first half of 2015. | |
The Company currently estimates that it will record a restructuring and impairment charge of approximately $57 million in the fourth quarter of 2014, primarily related to severance, and a restructuring charge of approximately $13 million in the first half of 2015, primarily related to real estate actions. The Company expects to make cash payments related to the 2014 Restructuring Plan of approximately $34 million in the fourth quarter of 2014 and approximately $20 million in the first half of 2015. |
Debt_Tables
Debt (Tables) | 9 Months Ended | ||
Sep. 27, 2014 | |||
Debt Disclosure [Abstract] | ' | ||
Debt Instrument Redemption | ' | ||
Period | Price as | ||
Percentage of | |||
Principal Amount | |||
Beginning on July 1, 2019 through June 30, 2020 | 103.5 | % | |
Beginning on July 1, 2020 through June 30, 2021 | 102.333 | % | |
Beginning on July 1, 2021 through June 30, 2022 | 101.167 | % | |
On July 1, 2022 and thereafter | 100 | % |
Supplemental_Balance_Sheet_Inf1
Supplemental Balance Sheet Information (Tables) | 9 Months Ended | |||||||
Sep. 27, 2014 | ||||||||
Balance Sheet Related Disclosures [Abstract] | ' | |||||||
Inventories | ' | |||||||
September 27, | December 28, | |||||||
2014 | 2013 | |||||||
(In millions) | ||||||||
Raw materials | $ | 36 | $ | 30 | ||||
Work in process | 648 | 727 | ||||||
Finished goods | 213 | 127 | ||||||
Total inventories, net | $ | 897 | $ | 884 | ||||
Prepaid Expenses and Other Current Assets | ' | |||||||
September 27, | December 28, | |||||||
2014 | 2013 | |||||||
(In millions) | ||||||||
Prepayments to GF | $ | 128 | $ | — | ||||
Other prepaid expenses and other current assets | 84 | 71 | ||||||
Total prepaid expenses and other current assets | $ | 212 | $ | 71 | ||||
Property, Plant and Equipment | ' | |||||||
September 27, | December 28, | |||||||
2014 | 2013 | |||||||
(In millions) | ||||||||
Land and land improvements | $ | 4 | $ | 3 | ||||
Buildings and leasehold improvements | 252 | 246 | ||||||
Equipment | 1,450 | 1,466 | ||||||
Construction in progress | 34 | 18 | ||||||
1,740 | 1,733 | |||||||
Accumulated depreciation and amortization | (1,412 | ) | (1,387 | ) | ||||
Total property, plant and equipment, net | $ | 328 | $ | 346 | ||||
Other Assets | ' | |||||||
September 27, | December 28, | |||||||
2014 | 2013 | |||||||
(In millions) | ||||||||
Software and technology licenses | $ | 238 | $ | 280 | ||||
Other | 117 | 106 | ||||||
Total other assets | $ | 355 | $ | 386 | ||||
Accrued and Other Current Liabilities | ' | |||||||
September 27, | December 28, | |||||||
2014 | 2013 | |||||||
(In millions) | ||||||||
Accrued compensation and benefits | $ | 178 | $ | 186 | ||||
Marketing programs and advertising expenses | 132 | 150 | ||||||
Software and technology licenses payable | 63 | 27 | ||||||
Other accrued and current liabilities | 182 | 167 | ||||||
Total accrued and other current liabilities | $ | 555 | $ | 530 | ||||
Net_Income_Loss_Per_Share_Tabl
Net Income (Loss) Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 27, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Net Income (Loss) Per Share | ' | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(In millions, except per share amounts) | |||||||||||||||||
Numerator – Net income (loss): | |||||||||||||||||
Numerator for basic and diluted net income (loss) per share | $ | 17 | $ | 48 | $ | (39 | ) | $ | (172 | ) | |||||||
Denominator – Weighted average shares | |||||||||||||||||
Denominator for basic net income (loss) per share | 770 | 757 | 765 | 753 | |||||||||||||
Effect of potentially dilutive shares: | |||||||||||||||||
Employee stock options, restricted stock and restricted stock units | 15 | 7 | — | — | |||||||||||||
Denominator for diluted net income (loss) per share | 785 | 764 | 765 | 753 | |||||||||||||
Net income (loss) per share: | |||||||||||||||||
Basic | $ | 0.02 | $ | 0.06 | $ | (0.05 | ) | $ | (0.23 | ) | |||||||
Diluted | $ | 0.02 | $ | 0.06 | $ | (0.05 | ) | $ | (0.23 | ) | |||||||
Financial_Instruments_Tables
Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 27, 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) | |||||||||||||||||
September 27, 2014 | |||||||||||||||||
Cash | $ | 362 | $ | 362 | $ | — | $ | — | |||||||||
Level 1(1) (2) | |||||||||||||||||
Money market funds | $ | 27 | $ | 27 | $ | — | $ | — | |||||||||
Total level 1 | $ | 27 | $ | 27 | $ | — | $ | — | |||||||||
Level 2(2) (3) | |||||||||||||||||
Commercial paper | $ | 504 | $ | 251 | $ | 253 | $ | — | |||||||||
Corporate bonds | 45 | — | 45 | — | |||||||||||||
Total level 2 | $ | 549 | $ | 251 | $ | 298 | $ | — | |||||||||
Total | $ | 938 | $ | 640 | $ | 298 | $ | — | |||||||||
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 deposits | 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 | ' | ||||||||||||||||
September 27, 2014 | December 28, 2013 | ||||||||||||||||
Carrying | Estimated | Carrying | Estimated | ||||||||||||||
Amount | Fair Value | Amount | Fair Value | ||||||||||||||
(In millions) | |||||||||||||||||
Short-term debt (excluding capital leases) | $ | 97 | $ | 98 | $ | 55 | $ | 55 | |||||||||
Long-term debt (excluding capital leases) | $ | 2,100 | $ | 2,149 | $ | 1,986 | $ | 2,132 | |||||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Operations | ' | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(In millions) | |||||||||||||||||
Foreign Currency Forward Contracts | |||||||||||||||||
Contracts designated as cash flow hedging instruments | |||||||||||||||||
Other comprehensive income (loss) | $ | (3 | ) | $ | 3 | $ | 1 | $ | (1 | ) | |||||||
Research and development | — | (1 | ) | (2 | ) | (1 | ) | ||||||||||
Marketing, general and administrative | (1 | ) | — | (2 | ) | — | |||||||||||
Contracts not designated as hedging instruments | |||||||||||||||||
Other income (expense), net | $ | (2 | ) | $ | 1 | $ | (2 | ) | $ | (1 | ) | ||||||
Schedule of Derivative Instruments in Balance Sheet | ' | ||||||||||||||||
September 27, | December 28, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
(In millions) | |||||||||||||||||
Foreign Currency Forward Contracts | |||||||||||||||||
Contracts designated as cash flow hedging instruments | $ | (2 | ) | $ | (3 | ) | |||||||||||
Contracts not designated as hedging instruments | $ | (1 | ) | $ | (1 | ) | |||||||||||
September 27, | December 28, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
(In millions) | |||||||||||||||||
Interest Rate Swap Contracts | |||||||||||||||||
Contracts designated as fair value hedging instruments | $ | (1 | ) | $ | — | ||||||||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 27, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Schedule of Segment Reporting Information, by Segment | ' | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(In millions) | |||||||||||||||||
Net revenue: | |||||||||||||||||
Computing and Graphics | $ | 781 | $ | 925 | $ | 2,470 | $ | 2,832 | |||||||||
Enterprise, Embedded and Semi-Custom | 648 | 536 | 1,797 | 878 | |||||||||||||
Total net revenue | $ | 1,429 | $ | 1,461 | $ | 4,267 | $ | 3,710 | |||||||||
Operating income (loss): | |||||||||||||||||
Computing and Graphics | $ | (17 | ) | $ | 9 | $ | (20 | ) | $ | (86 | ) | ||||||
Enterprise, Embedded and Semi-Custom | 108 | 92 | 290 | 166 | |||||||||||||
All Other | (28 | ) | (6 | ) | (95 | ) | (112 | ) | |||||||||
Total operating income (loss) | $ | 63 | $ | 95 | $ | 175 | $ | (32 | ) | ||||||||
StockBased_Incentive_Compensat1
Stock-Based Incentive Compensation Plans (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 27, 2014 | |||||||||||||||||
Share-based Compensation [Abstract] | ' | ||||||||||||||||
Schedule of Stock-based Compensation Expense, Allocation of Recognized Period Costs | ' | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(In millions) | |||||||||||||||||
Cost of sales | $ | 1 | $ | 1 | $ | 3 | $ | 4 | |||||||||
Research and development | 11 | 12 | 34 | 35 | |||||||||||||
Marketing, general and administrative | 9 | 10 | 28 | 28 | |||||||||||||
Stock-based compensation expense, net of tax of $0 | $ | 21 | $ | 23 | $ | 65 | $ | 67 | |||||||||
Weighted Average Valuation Assumptions for Stock Options | ' | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Expected volatility | 51.94 | % | 57.98 | % | 52.88 | % | 58.71 | % | |||||||||
Risk-free interest rate | 1.16 | % | 1.05 | % | 1.11 | % | 0.75 | % | |||||||||
Expected dividends | 0 | % | 0 | % | 0 | % | 0 | % | |||||||||
Expected life | 3.86 years | 3.83 years | 3.86 years | 3.83 years | |||||||||||||
Weighted Average Valuation Assumptions for Performance-based Restricted Stock Units | ' | ||||||||||||||||
Three Months Ended | |||||||||||||||||
September 27, | September 28, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Expected volatility | 46.68 | % | 57.46 | % | |||||||||||||
Risk-free interest rate | 0.24 | % | 0.2 | % | |||||||||||||
Expected dividends | 0 | % | 0 | % | |||||||||||||
Expected life | 1.39 years | 1.44 years | |||||||||||||||
Commitments_and_Contingencies_1
Commitments and Contingencies (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 27, 2014 | |||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||||||
Changes in Estimated Liability for Product Warranty | ' | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(In millions) | |||||||||||||||||
Beginning balance | $ | 19 | $ | 14 | $ | 17 | $ | 16 | |||||||||
New warranties issued | 6 | 7 | 22 | 19 | |||||||||||||
Settlements | (9 | ) | (6 | ) | (28 | ) | (17 | ) | |||||||||
Changes in liability for pre-existing warranties, including expirations | 3 | — | 8 | (3 | ) | ||||||||||||
Ending balance | $ | 19 | $ | 15 | $ | 19 | $ | 15 | |||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 27, 2014 | ||||||||||||||||||||||||
Statement of Comprehensive Income [Abstract] | ' | |||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
September 27, | September 28, | |||||||||||||||||||||||
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 | $ | — | $ | 1 | $ | — | $ | (6 | ) | $ | (6 | ) | ||||||||||
Unrealized gains (losses) arising during the period, net of tax effects | — | (3 | ) | (3 | ) | — | 3 | 3 | ||||||||||||||||
Reclassification adjustment for (gains) losses realized and included in net income (loss), net of tax effects | — | 1 | 1 | — | 1 | 1 | ||||||||||||||||||
Total other comprehensive income (loss) | — | (2 | ) | (2 | ) | — | 4 | 4 | ||||||||||||||||
Ending balance | $ | 1 | $ | (2 | ) | $ | (1 | ) | $ | — | $ | (2 | ) | $ | (2 | ) | ||||||||
Nine Months Ended | ||||||||||||||||||||||||
September 27, | September 28, | |||||||||||||||||||||||
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 gains (losses) arising during the period, net of tax effects | — | (3 | ) | (3 | ) | — | — | — | ||||||||||||||||
Reclassification adjustment for (gains) losses realized and included in net income (loss), net of tax effects | — | 4 | 4 | — | 1 | 1 | ||||||||||||||||||
Total other comprehensive income (loss) | — | 1 | 1 | — | 1 | 1 | ||||||||||||||||||
Ending balance | $ | 1 | $ | (2 | ) | $ | (1 | ) | $ | — | $ | (2 | ) | $ | (2 | ) | ||||||||
GLOBALFOUNDRIES_Details
GLOBALFOUNDRIES (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | |||||
In Millions, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 | Dec. 28, 2013 | Mar. 29, 2014 | Jun. 29, 2013 | Dec. 29, 2012 | Dec. 29, 2012 | Sep. 27, 2014 | Dec. 27, 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 | Estimate | ||||||
Globalfoundries | |||||||||||
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 | ' | ' |
Cash consideration for limited waiver of exclusivity to GF, paid | ' | ' | ' | ' | ' | 200 | 40 | 80 | ' | ' | ' |
Lower of cost or market charge | ' | ' | ' | ' | ' | ' | ' | ' | 273 | ' | ' |
Purchases from GF related to wafer manufacturing and research and development activities | 290 | 221 | 843 | 746 | ' | ' | ' | ' | ' | ' | ' |
Prepayments to GF | 128 | ' | 128 | ' | 0 | ' | ' | ' | ' | ' | ' |
Purchase obligations from GF | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,200 |
Debt_Details_Narrative
Debt (Details) (Narrative) (USD $) | 9 Months Ended | 9 Months Ended | 3 Months Ended | 3 Months Ended | |||||||||||
In Millions, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Dec. 28, 2013 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 27, 2014 | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 29, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Sep. 27, 2014 | Dec. 27, 2014 | Dec. 27, 2014 |
Secured Revolving Line of Credit | 6.00% Convertible Senior Notes Due 2015 | 6.75% Senior Notes due 2019 | 7.00% Senior Notes due 2024 | 6.00% Convertible Senior Notes Due 2015 | 6.00% Convertible Senior Notes Due 2015 | 6.00% Convertible Senior Notes Due 2015 | 8.125% Senior Notes Due 2017 | 8.125% Senior Notes Due 2017 | 8.125% Senior Notes Due 2017 | Subsequent Event | Subsequent Event | ||||
Repurchase in Open Market | Repurchase Pursuant to Tender Offer | 7.75% Senior Notes Due 2020 | 7.50% Senior Notes due 2022 | ||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, redemption price, percentage | ' | ' | ' | ' | ' | 101.00% | 101.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, issuance date | ' | ' | ' | ' | ' | 26-Feb-14 | 16-Jun-14 | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, face amount | ' | ' | ' | ' | ' | $600 | $500 | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, maturity date | ' | ' | ' | ' | ' | 1-Mar-19 | 1-Jul-24 | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt, redemption terms | ' | ' | ' | ' | ' | 'At any time 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). | 'At any time before July 1, 2017, the Company may redeem up to 35% of the aggregate principal amount of the 7.00% Notes within 90 days of the closing of an equity offering with the net proceeds thereof at a redemption price equal to 107.000% of the principal amount thereof, together with accrued and unpaid interest to but excluding the date of redemption. Prior to July 1, 2019, the Company may redeem some or all of the 7.00% 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 7.00% Indenture). | ' | ' | ' | ' | ' | ' | ' | ' |
Extinguishment of debt, amount | ' | ' | ' | ' | ' | ' | ' | ' | 64 | 423 | 452 | 48 | ' | 50 | 17 |
Repayments of debt, including accrued interest | ' | ' | ' | ' | ' | ' | ' | ' | 69 | 460 | 480 | 51 | ' | ' | ' |
Interest paid | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 10 | 7 | 1 | ' | ' | ' |
Loss on debt redemptions | 64 | 0 | ' | ' | ' | ' | ' | 10 | ' | ' | 49 | 5 | ' | ' | ' |
Short-term debt, gross | ' | ' | ' | ' | 42 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt, gross | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' |
Short-term debt, net of discount | 97 | ' | 55 | ' | 42 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Secured revolving line of credit, maximum borrowing capacity | ' | ' | ' | $500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt_Details_Debt_Instrument_R
Debt (Details) (Debt Instrument Redemption) (7.00% Senior Notes due 2024) | 9 Months Ended |
Sep. 27, 2014 | |
Debt Instrument, Redemption [Line Items] | ' |
Debt instrument, redemption price, percentage | 101.00% |
Beginning on July 1, 2019 through June 30, 2020 | ' |
Debt Instrument, Redemption [Line Items] | ' |
Debt instrument, redemption price, percentage | 103.50% |
Beginning on July 1, 2020 through June 30, 2021 | ' |
Debt Instrument, Redemption [Line Items] | ' |
Debt instrument, redemption price, percentage | 102.33% |
Beginning on July 1, 2021 through June 30, 2022 | ' |
Debt Instrument, Redemption [Line Items] | ' |
Debt instrument, redemption price, percentage | 101.17% |
On July 1, 2022 and thereafter | ' |
Debt Instrument, Redemption [Line Items] | ' |
Debt instrument, redemption price, percentage | 100.00% |
Supplemental_Balance_Sheet_Inf2
Supplemental Balance Sheet Information (Details) (Inventories) (USD $) | Sep. 27, 2014 | Dec. 28, 2013 |
In Millions, unless otherwise specified | ||
Raw materials | $36 | $30 |
Work in process | 648 | 727 |
Finished goods | 213 | 127 |
Total inventories, net | $897 | $884 |
Supplemental_Balance_Sheet_Inf3
Supplemental Balance Sheet Information (Details) (Prepaid Expenses and Other Current Assets) (USD $) | Sep. 27, 2014 | Dec. 28, 2013 |
In Millions, unless otherwise specified | ||
Prepayments to GF | $128 | $0 |
Other prepaid expenses and other current assets | 84 | 71 |
Prepaid expenses and other current assets | $212 | $71 |
Supplemental_Balance_Sheet_Inf4
Supplemental Balance Sheet Information (Details) (Property, Plant and Equipment) (USD $) | Sep. 27, 2014 | Dec. 28, 2013 |
In Millions, unless otherwise specified | ||
Land and land improvements | $4 | $3 |
Buildings and leasehold improvements | 252 | 246 |
Equipment | 1,450 | 1,466 |
Construction in progress | 34 | 18 |
Property, plant and equipment, gross | 1,740 | 1,733 |
Accumulated depreciation and amortization | -1,412 | -1,387 |
Total property, plant and equipment, net | $328 | $346 |
Supplemental_Balance_Sheet_Inf5
Supplemental Balance Sheet Information (Details) (Other Assets) (USD $) | Sep. 27, 2014 | Dec. 28, 2013 |
In Millions, unless otherwise specified | ||
Software and technology licenses | $238 | $280 |
Other | 117 | 106 |
Total other assets | $355 | $386 |
Supplemental_Balance_Sheet_Inf6
Supplemental Balance Sheet Information (Details) (Accrued and Other Current Liabilities) (USD $) | Sep. 27, 2014 | Dec. 28, 2013 |
In Millions, unless otherwise specified | ||
Accrued compensation and benefits | $178 | $186 |
Marketing programs and advertising expenses | 132 | 150 |
Software and technology licenses payable | 63 | 27 |
Other accrued and current liabilities | 182 | 167 |
Total accrued and other current liabilities | $555 | $530 |
Net_Income_Loss_Per_Share_Deta
Net Income (Loss) Per Share (Details) (WCH Warrants) (WCH Warrant) | 9 Months Ended |
Sep. 27, 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 | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 |
Numerator b Net income (loss): | ' | ' | ' | ' |
Net income (loss) | $17 | $48 | ($39) | ($172) |
Denominator b Weighted average shares | ' | ' | ' | ' |
Weighted-average shares outstanding, basic | 770 | 757 | 765 | 753 |
Effect of potentially dilutive shares: | ' | ' | ' | ' |
Employee stock options, restricted stock and restricted stock units | 15 | 7 | 0 | 0 |
Weighted-average shares outstanding, diluted | 785 | 764 | 765 | 753 |
Basic net income (loss) per share | $0.02 | $0.06 | ($0.05) | ($0.23) |
Diluted net income (loss) per share | $0.02 | $0.06 | ($0.05) | ($0.23) |
Stock Options, Restricted Stock and Restricted Stock Units | ' | ' | ' | ' |
Earnings per Share [Line Items] | ' | ' | ' | ' |
Anti-dilutive shares | 28 | 53 | 46 | 61 |
Financial_Instruments_Details_
Financial Instruments (Details) (Narrative) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Dec. 28, 2013 | Sep. 27, 2014 | Dec. 28, 2013 |
Money Market Funds | Money Market Funds | Mutual Funds | Mutual Funds | |||||
Financial Instruments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Available-for-sale investments used as collateral | ' | ' | ' | ' | $18 | $18 | ' | ' |
Restricted investments | ' | ' | ' | ' | ' | ' | 15 | 14 |
Marketable securities reclassified from LT to ST | 45 | ' | ' | ' | ' | ' | ' | ' |
Proceeds from sale of available-for-sale securities | 0 | ' | 0 | 14 | ' | ' | ' | ' |
Realized gain (loss) from Proceeds from sales of available-for-sale securities | $0 | $0 | $0 | $0 | ' | ' | ' | ' |
Financial_Instruments_Details_1
Financial Instruments (Details) (Schedule of Available-For-Sale Securities and Fair Value Measurements) (USD $) | Sep. 27, 2014 | Dec. 28, 2013 |
In Millions, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cash and cash equivalents, at fair value | $640 | $869 |
Current marketable securities, at fair value | 298 | 228 |
Noncurrent marketable securities, at fair value | 0 | 90 |
Cash, cash equivalents and marketable securities, at fair value | 938 | 1,187 |
Foreign currency contracts, liability, at fair value | -4 | -4 |
Fair Value, Inputs, Level 1 | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cash and cash equivalents, at fair value | 27 | 19 |
Current marketable securities, at fair value | 0 | 0 |
Noncurrent marketable securities, at fair value | 0 | 2 |
Cash, cash equivalents and marketable securities, at fair value | 27 | 21 |
Other assets, at fair value | 33 | 32 |
Fair Value, Inputs, Level 2 | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cash and cash equivalents, at fair value | 251 | 421 |
Current marketable securities, at fair value | 298 | 228 |
Noncurrent marketable securities, at fair value | 0 | 88 |
Cash, cash equivalents and marketable securities, at fair value | 549 | 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 | 362 | 429 |
Cash, cash equivalents and marketable securities, at fair value | 362 | 429 |
Money Market Funds | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cash and cash equivalents, at fair value | 27 | 19 |
Current marketable securities, at fair value | 0 | 0 |
Noncurrent marketable securities, at fair value | 0 | 2 |
Cash, cash equivalents and marketable securities, at fair value | 27 | 21 |
Available-for-sale Securities Pledged as Collateral | 18 | 18 |
Commercial Paper | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cash and cash equivalents, at fair value | 251 | 421 |
Current marketable securities, at fair value | 253 | 178 |
Noncurrent marketable securities, at fair value | 0 | 0 |
Cash, cash equivalents and marketable securities, at fair value | 504 | 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 | 0 | 88 |
Cash, cash equivalents and marketable securities, at fair value | 45 | 88 |
Mutual Funds | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Other assets, at fair value | $15 | $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 $) | Sep. 27, 2014 | Dec. 28, 2013 |
In Millions, unless otherwise specified | ||
Financial Instrument [Line Items] | ' | ' |
Short-term debt (excluding capital leases), at carrying amount | $97 | $55 |
Short-term debt (excluding capital leases), at estimated fair value | 98 | 55 |
Long-term debt (excluding capital leases), at carrying amount | 2,100 | 1,986 |
Long-term debt (excluding capital leases), at estimated fair value | $2,149 | $2,132 |
Financial_Instruments_Details_3
Financial Instruments (Details) (Gain (Loss) from Hedging Transactions) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 |
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net [Abstract] | ' | ' | ' | ' |
Other comprehensive income (loss) | ' | ' | $1 | ($1) |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | ' | ' | ' | ' |
Research and development | -278 | -288 | -834 | -908 |
Marketing, general and administrative | -150 | -155 | -460 | -505 |
Other income (expense), net | -2 | 2 | -72 | -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) | -3 | 3 | ' | ' |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | ' | ' | ' | ' |
Research and development | 0 | -1 | -2 | -1 |
Marketing, general and administrative | -1 | 0 | -2 | 0 |
Contracts not designated as hedging instruments | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | ' | ' | ' | ' |
Other income (expense), net | ($2) | $1 | ($2) | ($1) |
Financial_Instruments_Details_4
Financial Instruments (Details) (Summary of Derivative Instruments) (Details) (USD $) | Sep. 27, 2014 | Dec. 28, 2013 |
In Millions, unless otherwise specified | ||
Foreign Exchange Contract | ' | ' |
Derivative [Line Items] | ' | ' |
Contracts designated as cash flow hedging instruments | ($2) | ($3) |
Contracts not designated as hedging instruments | -1 | -1 |
Derivative contracts, net | -3 | ' |
Cash Flow Hedging | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative, notional amount | 211 | 124 |
Fair Value Hedging | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative, notional amount | 250 | ' |
Derivative contracts, net | ($1) | $0 |
Income_Taxes_Details_Narrative
Income Taxes (Details) (Narratives) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 |
Income Taxes [Line Items] | ' | ' | ' | ' |
Provision (benefit) for income taxes | $2 | $3 | $8 | $8 |
Gross unrecognized tax benefits | 61 | ' | 61 | ' |
Unrecognized tax benefits, estimated increase (decrease) over the next 12 months | -31 | ' | -31 | ' |
Foreign Taxes in Profitable Locations | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Provision (benefit) for income taxes | 2 | 2 | 9 | 7 |
Other Comprehensive Income and Tax Credits | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Provision (benefit) for income taxes | ' | ' | -1 | ' |
Other Comprehensive Income (Loss) | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Provision (benefit) for income taxes | ' | 1 | ' | 3 |
Canadian Tax Credits and Monetization of U.S. Tax Credits. | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Provision (benefit) for income taxes | ' | ' | ' | ($2) |
Segment_Reporting_Details_Summ
Segment Reporting (Details) (Summary of Net Revenue and Operating Income (Loss) by Segment) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net revenue | $1,429 | $1,461 | $4,267 | $3,710 |
Operating income (loss) | 63 | 95 | 175 | -32 |
Computing and Graphics | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net revenue | 781 | 925 | 2,470 | 2,832 |
Operating income (loss) | -17 | 9 | -20 | -86 |
Enterprise, Embedded and Semi-Custom | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net revenue | 648 | 536 | 1,797 | 878 |
Operating income (loss) | 108 | 92 | 290 | 166 |
All Other | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Operating income (loss) | ($28) | ($6) | ($95) | ($112) |
StockBased_Incentive_Compensat2
Stock-Based Incentive Compensation Plans (Details) (Narrative) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 | |
Stock options, shares granted | 5,562,000 | 4,647,000 | 5,716,000 | 5,974,000 |
Stock options, shares granted, weighted average estimated grant date fair value per share | $1.59 | $1.62 | $1.59 | $1.52 |
Restricted stock units, shares granted | 17,736,000 | 8,702,000 | 19,905,000 | 25,299,000 |
Restricted stock units, shares granted, weighted average grant date fair value | $4.12 | $3.89 | $4.11 | $3.78 |
Performance-based | ' | ' | ' | ' |
Restricted stock units, shares granted | 2,890,000 | 2,450,000 | ' | ' |
Restricted stock units, shares granted, weighted average grant date fair value | $4.36 | $4.07 | ' | ' |
StockBased_Incentive_Compensat3
Stock-Based Incentive Compensation Plans (Details) (Share-based Compensation, Allocation of Recognized Period Costs) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | $21 | $23 | $65 | $67 |
Cost of Sales | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | 1 | 1 | 3 | 4 |
Research and Development | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | 11 | 12 | 34 | 35 |
Marketing, General and Administrative | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | $9 | $10 | $28 | $28 |
StockBased_Incentive_Compensat4
Stock-Based Incentive Compensation Plans (Details) (Weighted-average Valuation Assumptions) | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 | |
Stock Options | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ' | ' | ' | ' |
Expected volatility | 51.94% | 57.98% | 52.88% | 58.71% |
Risk-free interest rate | 1.16% | 1.05% | 1.11% | 0.75% |
Expected dividends | 0.00% | 0.00% | 0.00% | 0.00% |
Expected life | '3 years 10 months 10 days | '3 years 10 months 0 days | '3 years 10 months 10 days | '3 years 10 months 0 days |
Performance-based | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ' | ' | ' | ' |
Expected volatility | 46.68% | 57.46% | ' | ' |
Risk-free interest rate | 0.24% | 0.20% | ' | ' |
Expected dividends | 0.00% | 0.00% | ' | ' |
Expected life | '1 year 4 months 20 days | '1 year 5 months 10 days | ' | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details) (Schedule of Changes in Product Warranty Liability) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 |
Changes in Product Warranty Liability [Roll Forward] | ' | ' | ' | ' |
Beginning balance | $19 | $14 | $17 | $16 |
New warranties issued | 6 | 7 | 22 | 19 |
Settlements | -9 | -6 | -28 | -17 |
Changes in liability for pre-existing warranties, including expirations | 3 | 0 | 8 | -3 |
Ending balance | $19 | $15 | $19 | $15 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (Details) (Schedule of Accumulated Other Comprehensive Income (Loss)) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 |
Unrealized gains (losses) on available-for-sale securities: | ' | ' | ' | ' |
Beginning Balance | $1 | $0 | $1 | $0 |
Unrealized gains (losses) arising during the period, net of tax effects | 0 | 0 | 0 | 0 |
Reclassification adjustment for (gains) losses realized and included in net loss, net of tax effects | 0 | 0 | 0 | 0 |
Total other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Ending Balance | 1 | 0 | 1 | 0 |
Unrealized gains (losses) on cash flow hedges: | ' | ' | ' | ' |
Beginning balance | 0 | -6 | -3 | -3 |
Unrealized gains (losses) arising during the period, net of tax effects | -3 | 3 | -3 | 0 |
Reclassification adjustment for (gains) losses realized and included in net loss, net of tax effects | 1 | 1 | 4 | 1 |
Total other comprehensive income (loss) | -2 | 4 | 1 | 1 |
Ending balance | -2 | -2 | -2 | -2 |
Total: | ' | ' | ' | ' |
Beginning balance | 1 | -6 | -2 | -3 |
Unrealized gains (losses) arising during the period, net of tax effects | -3 | 3 | -3 | 0 |
Reclassification adjustment for (gains) losses realized and included in net loss, net of tax effects | 1 | 1 | 4 | 1 |
Total other comprehensive income (loss) | -2 | 4 | 1 | 1 |
Ending balance | ($1) | ($2) | ($1) | ($2) |
Subsequent_Events_Details_Narr
Subsequent Events (Details) (Narratives) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 | Dec. 27, 2014 | Jun. 27, 2015 |
Estimate | Estimate | |||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' |
Reduction of the Company's global workforce | 7.00% | ' | 7.00% | ' | ' | ' |
Restructuring and other special charges (gains), net | $0 | ($22) | $0 | $30 | $57 | $13 |
Payments for restructuring | ' | ' | ' | ' | $34 | $20 |