Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 28, 2019 | Jan. 31, 2020 | Jun. 29, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 28, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-07882 | ||
Entity Registrant Name | ADVANCED MICRO DEVICES, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 94-1692300 | ||
Entity Address, Address Line One | 2485 Augustine Drive | ||
Entity Address, City or Town | Santa Clara, | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 95054 | ||
City Area Code | 408 | ||
Local Phone Number | 749-4000 | ||
Title of 12(b) Security | Common Stock, $0.01 par value per share | ||
Trading Symbol | AMD | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 32.8 | ||
Entity Common Stock, Shares Outstanding (in shares) | 1,169,661,536 | ||
Documents Incorporated by Reference | Portions of the registrant’s proxy statement for the 2020 Annual Meeting of Stockholders (2020 Proxy Statement) are incorporated into Part III hereof. The 2020 Proxy Statement will be filed with the U.S. Securities and Exchange Commission within 120 days after the registrant’s fiscal year ended December 28, 2019. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000002488 | ||
Current Fiscal Year End Date | --12-28 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income Statement [Abstract] | |||
Net revenue | $ 6,731 | $ 6,475 | $ 5,253 |
Cost of sales | 3,863 | 4,028 | 3,466 |
Gross profit | 2,868 | 2,447 | 1,787 |
Research and development | 1,547 | 1,434 | 1,196 |
Marketing, general and administrative | 750 | 562 | 516 |
Licensing gain | (60) | 0 | (52) |
Operating income | 631 | 451 | 127 |
Interest expense | (94) | (121) | (126) |
Other expense, net | (165) | 0 | (9) |
Income (loss) before income taxes and equity loss | 372 | 330 | (8) |
Provision for (benefit from) income taxes | 31 | (9) | 18 |
Equity loss in investee | 0 | (2) | (7) |
Net income (loss) | $ 341 | $ 337 | $ (33) |
Earnings (loss) per share | |||
Basic (in usd per share) | $ 0.31 | $ 0.34 | $ (0.03) |
Diluted (in usd per share) | $ 0.30 | $ 0.32 | $ (0.03) |
Shares used in per share calculation | |||
Basic ((in shares)) | 1,091 | 982 | 952 |
Diluted (in shares) | 1,120 | 1,064 | 952 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 341 | $ 337 | $ (33) |
Unrealized gains (losses) on available-for-sale securities: | |||
Unrealized gains arising during period | 0 | 0 | 1 |
Unrealized gains (losses) on cash flow hedges: | |||
Unrealized gains (losses) arising during period | 2 | ||
Reclassification adjustment for (gains) losses realized and included in net income (loss) | 6 | ||
Total change in unrealized gains (losses) on cash flow hedges | 8 | ||
Unrealized gains (losses) arising during period | (19) | 17 | |
Reclassification adjustment for (gains) losses realized and included in net income (loss) | 5 | (7) | |
Total change in unrealized gains (losses) on cash flow hedges | (14) | 10 | |
Cumulative-effect adjustment to accumulated deficit related to the adoption of ASU 2016-01, Financial Instruments | 0 | 2 | 0 |
Total comprehensive income (loss) | $ 349 | $ 325 | $ (22) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 1,466 | $ 1,078 |
Marketable securities | 37 | 78 |
Accounts receivable, net | 1,859 | 1,235 |
Inventories, net | 982 | 845 |
Prepayment and receivables—related parties | 20 | 34 |
Prepaid expenses and other current assets | 233 | 270 |
Total current assets | 4,597 | 3,540 |
Property and equipment, net | 500 | 348 |
Operating lease right-of-use assets | 205 | |
Goodwill | 289 | 289 |
Investment: equity method | 58 | 58 |
Other assets | 379 | 321 |
Total assets | 6,028 | 4,556 |
Current liabilities: | ||
Short-term debt, net | 0 | 136 |
Accounts payable | 988 | 834 |
Payables to related parties | 213 | 207 |
Accrued liabilities | 1,084 | 783 |
Other current liabilities | 74 | 24 |
Total current liabilities | 2,359 | 1,984 |
Long-term debt, net | 486 | 1,114 |
Long-term operating lease liabilities | 199 | |
Other long-term liabilities | 157 | 192 |
Commitments and contingencies (see Notes 17 and 18) | ||
Stockholders’ equity: | ||
Common stock, par value $0.01; 2,250 shares authorized, 1,175 shares issued and 1,170 shares outstanding as of December 28, 2019; 2,250 shares authorized, 1,010 shares issued and 1,005 shares outstanding as of December 29, 2018 | 12 | 10 |
Additional paid-in capital | 9,963 | 8,750 |
Treasury stock, at cost (5 shares as of December 28, 2019 and December 29, 2018) | (53) | (50) |
Accumulated deficit | (7,095) | (7,436) |
Accumulated other comprehensive income (loss) | 0 | (8) |
Total stockholders’ equity | 2,827 | 1,266 |
Total liabilities and stockholders’ equity | $ 6,028 | $ 4,556 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 28, 2019 | Dec. 29, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (shares) | 2,250,000,000 | 2,250,000,000 |
Common stock, shares issued (shares) | 1,175,000,000 | 1,010,000,000 |
Common stock, shares outstanding (shares) | 1,170,000,000 | 1,005,000,000 |
Treasury stock (shares) | 5,000,000 | 5,000,000 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders Equity - USD ($) $ in Millions | Total | Common stock | Additional paid-in capital | Treasury stock | Accumulated deficit | Accumulated other comprehensive income (loss) |
Beginning balance at Dec. 31, 2016 | $ 9 | $ 8,334 | $ (119) | $ (7,742) | $ (5) | |
Number of shares | ||||||
Common stock issued under employee equity incentive plans, net of tax withholding | 20 | (13) | ||||
Stock-based compensation | 97 | |||||
Issuance of treasury stock to partially settle debt | 13 | 24 | ||||
Net income (loss) | $ (33) | (33) | ||||
Other comprehensive income (loss) | 11 | |||||
Ending balance at Dec. 30, 2017 | 596 | 9 | 8,464 | (108) | (7,775) | 6 |
Number of shares | ||||||
Common stock issued under employee equity incentive plans, net of tax withholding | 1 | 71 | (6) | |||
Stock-based compensation | 137 | |||||
Issuance of treasury stock to partially settle debt | 78 | 64 | ||||
Net income (loss) | 337 | 337 | ||||
Other comprehensive income (loss) | (14) | |||||
Ending balance at Dec. 29, 2018 | 1,266 | 10 | 8,750 | (50) | (7,436) | (8) |
Number of shares | ||||||
Common stock issued under employee equity incentive plans, net of tax withholding | 74 | (6) | ||||
Stock-based compensation | 197 | |||||
Issuance of common stock upon warrant exercise | 1 | 448 | ||||
Issuance of common stock to partially settle convertible debt, net | 1 | 485 | ||||
Issuance of treasury stock to partially settle debt | 4 | 3 | ||||
Issuance of warrants | 5 | |||||
Net income (loss) | 341 | 341 | ||||
Other comprehensive income (loss) | $ 8 | |||||
Ending balance at Dec. 28, 2019 | $ 2,827 | $ 12 | $ 9,963 | $ (53) | $ (7,095) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 341 | $ 337 | $ (33) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 222 | 170 | 144 |
Stock-based compensation | 197 | 137 | 97 |
Amortization of debt discount and issuance costs | 30 | 38 | 36 |
Amortization of operating lease right-of-use assets | 36 | 0 | 0 |
Loss on debt redemption, repurchase and conversion | 176 | 12 | 12 |
Loss on sale/disposal of property and equipment | 42 | 27 | 0 |
Impairment of technology licenses | 0 | 45 | 0 |
Deferred income taxes | (4) | (4) | 0 |
Other | (5) | (1) | 0 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (623) | (806) | (103) |
Inventories | (137) | (151) | (3) |
Prepayment and receivables—related parties | 14 | (28) | (6) |
Prepaid expenses and other assets | (176) | (70) | (167) |
Payables to related parties | 7 | 35 | 43 |
Accounts payable, accrued liabilities and other | 373 | 293 | (8) |
Net cash provided by operating activities | 493 | 34 | 12 |
Cash flows from investing activities: | |||
Purchases of available-for-sale debt securities | 284 | 123 | 222 |
Purchases of property and equipment | (217) | (163) | (113) |
Proceeds from maturity of available-for-sale debt securities | 325 | 45 | 222 |
Collection of deferred proceeds on sale of receivables | 25 | 71 | 60 |
Other | 2 | 0 | (1) |
Net cash used in investing activities | (149) | (170) | (54) |
Cash flows from financing activities: | |||
Proceeds from issuance of common stock through employee equity incentive plans | 74 | 70 | 20 |
Proceeds from (repayments of) short-term debt | (70) | 0 | 70 |
Proceeds from warrant exercised by related party | 449 | 0 | 0 |
Payments to extinguish long-term debt | (403) | (41) | (110) |
Other | (7) | (1) | (13) |
Net cash provided by (used in) financing activities | 43 | 28 | (33) |
Net increase (decrease) in cash and cash equivalents, and restricted cash | 387 | (108) | (75) |
Cash, cash equivalents, and restricted cash at beginning of year | 1,083 | 1,191 | 1,266 |
Cash, cash equivalents, and restricted cash at end of year | 1,470 | 1,083 | 1,191 |
Cash paid during the year for: | |||
Interest | 67 | 79 | 88 |
Income taxes, net of refund | (4) | (8) | 20 |
Non-cash investing and financing activities: | |||
Purchases of property and equipment, accrued but not paid | 65 | 49 | 50 |
Issuance of common stock to partially settle convertible debt | 377 | 0 | 0 |
Issuance of treasury stock to partially settle debt | 7 | 141 | 38 |
Deferred proceeds on sale of receivables | 0 | 25 | 21 |
Transfer of assets for the acquisition of property and equipment | 115 | 28 | 12 |
Other | 9 | 0 | 0 |
Reconciliation of cash, cash equivalents, and restricted cash | |||
Total cash, cash equivalents, and restricted cash | $ 1,083 | $ 1,191 | $ 1,191 |
The Company
The Company | 12 Months Ended |
Dec. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company | The CompanyAdvanced Micro Devices, Inc. is a global semiconductor company. References herein to AMD or the Company mean Advanced Micro Devices, Inc. and its consolidated subsidiaries. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 28, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Fiscal Year . The Company uses a 52 or 53 week fiscal year ending on the last Saturday in December. Fiscal 2019 , 2018 and 2017 ended December 28, 2019 , December 29, 2018 and December 30, 2017 , respectively. Fiscal 2019, 2018 and 2017 each consisted of 52 weeks. Principles of Consolidation. The consolidated financial statements include the Company’s accounts and those of its wholly-owned subsidiaries. Upon consolidation, all inter-company accounts and transactions have been eliminated. Reclassification. Certain prior period amounts have been reclassified to conform to current period presentation. Use of Estimates. The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of commitments and contingencies at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results are likely to differ from those estimates, and such differences may be material to the financial statements. Areas where management uses subjective judgment include, but are not limited to, revenue allowances, inventory valuation, valuation and impairment of goodwill and deferred income taxes. Basis of Presentation . Effective in the first quarter of 2018, the Company adopted Accounting Standard Update (ASU) 2014-09, Revenue from Contracts with Customers (ASC 606), using the full retrospective method, which required the Company to adjust prior reporting periods presented. The 2017 amounts presented in the consolidated financial statements and notes to the consolidated financial statements were previously adjusted in the Company’s 2018 Form 10-K to reflect the retrospective application. Revenue Recognition. Revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services. Sales, value-added, and other taxes collected concurrently with the provision of goods or services are excluded from revenue. Shipping and handling costs associated with product sales are included in cost of sales. Nature of products and services The Company’s microprocessors (CPUs), chipsets, graphics processing unites (GPUs), data center and professional graphics products, accelerated processing units (APUs), server and embedded processors, and System-on-Chip (SoC) products may be sold as standard non-custom products, or custom products manufactured to customers’ specifications. The Company also provides development services and licenses portions of its intellectual property (IP) portfolio. Non-custom products: The Company transfers control and recognizes revenue when non-custom products are shipped to customers, which includes original equipment manufacturers (OEM) and distributors, in accordance with the shipping terms of the sale. Certain OEMs may be entitled to rights of return and rebates under OEM agreements. The Company also sells to distributors under terms allowing the majority of distributors certain rights of return and price protection on unsold merchandise held by them. The Company estimates the amount of variable consideration under OEM and distributor arrangements and, accordingly, records a provision for product returns, allowances for price protection and rebates based on actual historical experience and any known events. The Company offers incentive programs to certain customers, including cooperative advertising, marketing promotions, volume-based incentives and special pricing arrangements. Where funds provided for such programs can be estimated, the Company recognizes a reduction to revenue at the time the related revenue is recognized; otherwise, the Company recognizes such reduction to revenue at the later of when: i) the related revenue transaction occurs; or ii) the program is offered. For transactions where the Company reimburses a customer for a portion of the customer’s cost to perform specific product advertising or marketing and promotional activities, such amounts are recognized as a reduction to revenue unless they qualify for expense recognition. Custom products: Custom products which are associated with the Company’s Enterprise, Embedded, and Semi-Custom segment (semi-custom products), sold under non-cancellable purchases orders and which have no alternative use to the Company at contract inception, are recognized as revenue, based on the value of the inventory and expected margin, over the time of production of the products by the Company. Sales of semi-custom products are not subject to a right of return. Development and intellectual property licensing agreements: From time to time, the Company may enter into arrangements with customers that combine the provision of development services and a license to the right to use the IP. These arrangements are deemed to be single or multiple performance obligations based upon the nature of the arrangements. Revenue is recognized upon the transfer of control, over time or at a point-in time, depending on the nature of the arrangements. Customers are generally required to pay for products and services within the Company’s standard contractual terms, which are typically net 30 to 60 days. The Company has determined that it does not have significant financing components in its contracts with customers. Inventories. Inventories are stated at standard cost adjusted to approximate the lower of actual cost (first-in, first-out method) or estimated net realizable value. The Company adjusts inventory carrying value for estimated excess and obsolescence equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about anticipated or forecasted demand, estimates of future selling prices, competitiveness of product offerings, market and industry conditions, customer requirements and product life cycles. The Company fully reserves for inventories and non-cancellable purchase orders for inventory deemed obsolete. The Company performs periodic reviews of inventory items to identify excess inventories on hand by comparing on-hand balances to anticipated usage using recent historical activity as well as anticipated or forecasted demand. If estimates of customer demand diminish further or market conditions become less favorable than those projected by the Company, additional inventory adjustments may be required . Goodwill. The Company performs its goodwill impairment analysis 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 a more frequent basis. The analysis may include both qualitative and quantitative factors to assess the likelihood of an impairment. Qualitative factors include industry and market consideration, overall financial performance, share price trends and market capitalization and Company-specific events. The Company first analyzes qualitative factors. If the Company concludes it is more likely than not that the fair value of a reporting unit exceeds its carrying amount, the Company does not proceed to perform a quantitative impairment test. If the Company concludes it is more likely than not that the fair value of the reporting unit is less than its carrying value, a quantitative goodwill impairment test will be performed by comparing the fair value of each reporting unit to its carrying value. A quantitative impairment analysis, if necessary, considers the income approach, which requires estimates of the present value of expected future cash flows to determine a reporting unit’s fair value. Significant estimates include revenue growth rates and operating margins used to calculate projected future cash flows, discount rates, and future economic and market conditions. A goodwill impairment charge is recognized for the amount by which the reporting unit’s fair value is less than its carrying value. Any loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Commitments and Contingencies. From time to time the Company is a defendant or plaintiff in various legal actions that arise in the normal course of business. The Company is also subject to income tax, indirect tax or other tax claims by tax agencies in jurisdictions in which it conducts business. In addition, the Company is a party to environmental matters including local, regional, state and federal government clean-up activities at or near locations where the Company currently or has in the past conducted business. The Company is required to assess the likelihood of any adverse judgments or outcomes to these matters as well as potential ranges of reasonably possible losses. A determination of the amount of reserves required for these commitments and contingencies that would be charged to earnings, if any, includes assessing the probability of adverse outcomes and estimating the amount of potential losses. The required reserves, if any, may change due to new developments in each matter or changes in circumstances such as a change in settlement strategy. Cash Equivalents. Cash equivalents consist of financial instruments that are readily convertible into cash and have original maturities of three months or less at the time of purchase. Accounts Receivable. Accounts receivable are primarily comprised of trade receivables presented net of rebates, price protection and an allowance for doubtful accounts. Accounts receivable also include unbilled receivables, which primarily represent work completed on semi-custom products under non-cancellable purchase orders that have no alternative use to the Company at contract inception, for which revenue has been recognized but not yet invoiced to customers. The Company maintains an allowance for doubtful accounts based on its assessment of the collectability of amounts owed by customers. The allowance consists of known specific troubled accounts as well as an amount based on overall estimated potential uncollectible accounts receivable based on historical experience. Investments in Available-for-sale Debt Securities . The Company classifies its investments in debt securities at the date of acquisition as available-for-sale. Available-for-sale debt securities are reported at fair value with the related unrealized gains and losses included, net of tax, in accumulated other comprehensive income (loss), a component of stockholders’ equity. Realized gains and losses and declines in the value of available-for-sale debt securities determined to be other than temporary are included in other expense, net. The cost of securities sold is determined based on the specific identification method. The Company classifies investments in available-for-sale debt securities with maturities of more than three months at the time of purchase as marketable securities on its consolidated balance sheets. Classification of these securities as current is based on the Company’s intent and belief in its ability to sell these securities and use the proceeds from sale in operations within 12 months. Derivative Financial Instruments. The Company maintains a foreign currency hedging strategy which uses derivative financial instruments to mitigate the risks associated with changes in foreign currency exchange rates. This strategy takes into consideration some of the Company’s consolidated exposures. The Company does not use derivative financial instruments for trading or speculative purposes. In applying its strategy, the Company uses foreign currency forward contracts to hedge certain forecasted revenue and expenses denominated in foreign currencies. The Company designates these contracts as cash flow hedges of forecasted revenue and expenses, to the extent eligible under the accounting rules, and evaluates hedge effectiveness prospectively and retrospectively. To the extent such hedges are effective, the Company records the gain or loss on these contracts as a component of accumulated other comprehensive income (loss) and it reclassifies such gains or losses to earnings in the same period during which the hedged transaction affects earnings. Such amounts are included in the same line item in earnings as the associated forecasted transaction. The Company also uses, from time to time, foreign currency forward contracts to economically hedge recognized foreign currency exposures on the balance sheets of various subsidiaries. The Company does not designate these forward contracts as hedging instruments. Accordingly, the gain or loss associated with these contracts is immediately recorded in Other expense, net. Property and Equipment. Property and equipment are stated at cost. Depreciation and amortization are provided on a straight-line basis over the estimated useful lives of the assets. Estimated useful lives are as follows: equipment uses two to six years , and leasehold improvements are measured by the shorter of the remaining terms of the leases or the estimated useful economic lives of the improvements. Leases. The Company determines if an arrangement is a lease, or contains a lease, at the inception of the arrangement. When the Company determines the arrangement is a lease, or contains a lease, at lease inception, it then determines whether the lease is an operating lease or a finance lease. Operating and finance leases result in the Company recording a right-of-use (ROU) asset and lease liability on its balance sheet. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Operating and finance lease ROU assets and liabilities are initially recognized based on the present value of lease payments over the lease term. In determining the present value of lease payments, the Company uses the implicit interest rate if readily determinable or when the implicit interest rate is not readily determinable, the Company uses its incremental borrowing rate. The incremental borrowing rate is not a commonly quoted rate and is derived through a combination of inputs including the Company’s credit rating and the impact of full collateralization. The incremental borrowing rate is based on the Company’s collateralized borrowing capabilities over a similar term of the lease payments. The Company utilizes the consolidated group incremental borrowing rate for all leases as the Company has centralized treasury operations. The operating lease ROU asset also includes any lease payments made and excludes any lease incentives. Specific lease terms may include options to extend or terminate the lease when the Company believes it is reasonably certain that it will exercise that option. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. As allowed by the guidance, the Company has elected not to recognize ROU assets and lease liabilities that arise from short-term (12 months or less) leases for any class of underlying asset. Operating leases are included in operating lease ROU assets, other current liabilities, and long-term operating lease liabilities on the Company’s consolidated balance sheet. The Company’s finance leases are immaterial. Product Warranties. The Company generally warrants that its products sold to its customers will conform to its approved specifications and be free from defects in material and workmanship under normal use and conditions for one year . The Company may also offer one to three -year limited warranties based on product type and negotiated warranty terms with certain customers. The Company accrues warranty costs to Cost of sales at the time of sale of warranted products. Foreign Currency Translation/Transactions. The functional currency of all of the Company’s foreign subsidiaries is the U.S. dollar. Assets and liabilities denominated in non-U.S. dollars have been remeasured into U.S. dollars at current exchange rates for monetary assets and liabilities and historical exchange rates for non-monetary assets and liabilities. Non-U.S. dollar denominated transactions have been remeasured at average exchange rates in effect during each period, except for those cost of sales and expense transactions related to non-monetary balance sheet amounts which have been remeasured at historical exchange rates. The gains or losses from foreign currency remeasurement are included in earnings. Marketing and Advertising Expenses. Advertising costs are expensed as incurred. In addition, the Company’s marketing and advertising expenses include certain cooperative advertising funding obligations under customer incentive programs, which costs are recorded upon agreement with customers and vendor partners. Cooperative advertising expenses are recorded as marketing, general and administrative expense to the extent the cash paid does not exceed the estimated fair value of the advertising benefit received. Any excess of cash paid over the estimated fair value of the advertising benefit received is recorded as a reduction of revenue. Total marketing and advertising expenses for 2019 , 2018 and 2017 were approximately $217 million , $176 million and $156 million , respectively. Stock-Based Compensation . The Company estimates stock-based compensation cost for stock options at the grant date based on the option’s fair value as calculated by the lattice-binomial option-pricing model. For time-based restricted stock units, fair value is based on the closing price of the Company’s common stock on the grant date. The Company estimates the grant-date fair value of restricted stock units that involve a market condition using the Monte Carlo simulation model. The Company estimates the grant-date fair value of stock to be issued under the ESPP using the Black-Scholes model. Compensation expense is recognized over the vesting period of the applicable award using the straight-line method, except for the compensation expense related to PRSUs, which are recognized ratably for each vesting tranche from the service inception date to the end of the requisite service period. Forfeiture rates are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Income Taxes. The Company computes the provision for income taxes using the liability method and recognizes deferred tax assets and liabilities for temporary differences between financial statement and income tax bases of assets and liabilities, as well as for operating loss and tax credit carryforwards. The Company measures deferred tax assets and liabilities using tax rates applicable to taxable income in effect for the years in which those tax assets are expected to be realized or settled and provides a valuation allowance against deferred tax assets when it cannot conclude that it is more likely than not that some or all deferred tax assets will be realized. In addition, the Company recognizes tax benefits from uncertain tax positions only if it expects that its tax positions are more likely than not that they will be sustained, based on the technical merits of the positions, on examination by the jurisdictional tax authority. The Company recognizes any accrued interest and penalties to unrecognized tax benefits as interest expense and income tax expense, respectively. Recently Adopted Accounting Standards Leases. In February 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-02, Leases (Topic 842) , to increase transparency and comparability among organizations for lease recognition and disclosure. This standard requires lessees to recognize lease assets and lease liabilities on the balance sheet, while recognizing expenses on the income statements in a manner similar to legacy guidance. The Company adopted this standard in the first quarter of 2019, using the optional modified retrospective approach, which did not require an adjustment to comparative period financial statements, and recorded $228 million of right-of-use assets and $261 million of lease liabilities primarily related to office buildings on its consolidated balance sheet as of December 30, 2018. The Company’s accounting for capital leases, now referred to as finance leases, remains unchanged. The adoption of the new standard had no impact on the Company’s consolidated statement of operations or on net cash provided by or used in operating, financing, or investing activities on its consolidated statement of cash flows. Upon adoption of ASU 2016-02, the Company elected a transition practical expedient under the new accounting standard allowing it not to separate lease and non-lease components and instead to account for each separate lease component and non-lease component as a single lease component. The Company implemented internal controls and key system functionality to enable the preparation of financial information on adoption. Recently Issued Accounting Standards Financial Instruments. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments . This standard changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, using a modified retrospective adoption method. The Company will adopt this standard in the first quarter of 2020 and the adoption will not have a material impact on its consolidated financial statements. Income Taxes. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . This standard simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in Topic 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The new guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill and allocating consolidated income taxes to separate financial statements of entities not subject to income tax. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, with early adoption permitted. Upon adoption, the Company must apply certain aspects of this standard retrospectively for all periods presented while other aspects are applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. The Company is currently evaluating the impact of this new standard on its consolidated financial statements. Although there are several other new accounting pronouncements issued by the FASB, the Company does not believe any of these accounting pronouncements had or will have a material impact on its consolidated financial statements. |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 12 Months Ended |
Dec. 28, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information Accounts Receivable, net As of December 28, 2019 and December 29, 2018 , Accounts receivable, net included unbilled accounts receivable of $197 million and $308 million , respectively. Unbilled receivables primarily represent work completed on semi-custom products under non-cancellable purchase orders that have no alternative use to the Company at contract inception, for which revenue has been recognized but not yet invoiced to customers. All unbilled accounts receivables are expected to be billed and collected within 12 months. Inventories, net December 28, December 29, (In millions) Raw materials $ 94 $ 134 Work in process 691 354 Finished goods 197 357 Total inventories, net $ 982 $ 845 Property and Equipment, net December 28, December 29, (In millions) Leasehold improvements $ 203 $ 179 Equipment 951 798 Construction in progress 114 78 Property and equipment, gross 1,268 1,055 Accumulated depreciation and amortization (768 ) (707 ) Total property and equipment, net $ 500 $ 348 Depreciation expense for 2019 , 2018 and 2017 was $142 million , $94 million and $77 million , respectively. Other Assets December 28, December 29, (In millions) Software and technology licenses, net $ 210 $ 226 Other 169 95 Total other assets $ 379 $ 321 During 2018, the Company recorded an impairment charge in Cost of sales of $45 million on technology licenses that are no longer being used. Accrued Liabilities December 28, December 29, (In millions) Accrued compensation and benefits $ 285 $ 236 Marketing programs and advertising expenses 454 275 Other accrued and current liabilities 345 272 Total accrued liabilities $ 1,084 $ 783 Other Current Liabilities December 28, December 29, (In millions) Unearned revenue $ 2 $ 11 Operating lease liabilities 43 — Other 29 13 Total other current liabilities $ 74 $ 24 Unearned revenue represents consideration received or due from customers in advance of the Company satisfying its performance obligations. The unearned revenue is associated with any combination of development services, IP licensing and product revenue. Changes in unearned revenue were as follows: December 28, December 29, (In millions) Beginning balance $ 11 $ 85 Unearned revenue 43 132 Revenue recognized during the period (52 ) (186 ) Other — (20 ) Ending balance $ 2 $ 11 Revenue allocated to remaining performance obligations that are unsatisfied (or partially unsatisfied) as of December 28, 2019 is $456 million , which may include amounts received from customer but not yet earned and amounts that will be invoiced and recognized as revenue in future periods associated with any combination of development services, IP licensing and product revenue. The Company expects to recognize $188 million in the next 12 months . The revenue allocated to remaining performance obligations did not include amounts which have an original expected duration of less than one year. |
Equity Joint Ventures
Equity Joint Ventures | 12 Months Ended |
Dec. 28, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Joint Ventures | Equity Joint Ventures ATMP Joint Venture s The Company holds a 15% equity interest in two joint ventures (collectively, the ATMP JV) with Tongfu Microelectronics Co., Ltd, a Chinese joint stock company, and as such, the ATMP JV is a related party of the Company. The Company has no obligation to fund the ATMP JV. The Company accounts for its equity interests in the ATMP JV under the equity method of accounting due to its significant influence over the ATMP JV. The ATMP JV provides assembly, test, mark and packaging (ATMP) services to the Company. The Company assists the ATMP JV in its management of certain raw material inventory. The purchases from and resales to the ATMP JV of inventory under inventory management is reported within purchases and resales with the ATMP JV and does not impact the Company’s consolidated statement of operations. The Company’s total purchases from the ATMP JV during 2019 and 2018 amounted to $660 million and $574 million , respectively. As of December 28, 2019 and December 29, 2018 , the amount payable to the ATMP JV was $213 million and $207 million , respectively, included in Payables to related parties on the Company’s consolidated balance sheets. The Company’s resales back to the ATMP JV during 2019 and 2018 amounted to $56 million and $62 million , respectively. As of December 28, 2019 and December 29, 2018 , the Company had receivables from ATMP JV of $7 million and $16 million , respectively, included in Prepayment and receivables—related parties on the Company’s consolidated balance sheets. During 2019, the Company did no t record any gain or loss in Equity loss in investee on its consolidated statements of operations. During 2018 and 2017 , the Company recorded $2 million and $7 million , respectively, in Equity loss in investee , which included certain expenses incurred by the Company on behalf of the ATMP JV. As of December 28, 2019 and December 29, 2018 , the carrying value of the Company’s investment in the ATMP JV was approximately $58 million . THATIC Joint Ventures In February 2016, the Company and Higon Information Technology Co., Ltd. (THATIC), a third-party Chinese entity (JV Partner), formed a joint venture comprised of two separate legal entities, China JV1 and China JV2 (collectively, the THATIC JV). The Company’s equity share in China JV1 and China JV2 is a majority and minority interest, respectively, funded by the Company’s contribution of certain of its patents. The JV Partner is responsible for the initial and on-going financing of the THATIC JV’s operations. The Company has no obligations to fund the THATIC JV. The Company does not consolidate either of these entities and accounts for its investments in the THATIC JV under the equity method of accounting. The THATIC JV is a related party of the Company. The Company’s share in the net losses of the THATIC JV for 2019 is not recorded in the Company’s consolidated statements of operations since the Company is not obligated to fund the THATIC JV’s losses in excess of the Company’s investment in the THATIC JV, which was zero as of December 28, 2019 . In February 2016, the Company licensed certain of its intellectual property (Licensed IP) to the THATIC JV for a total of $293 million in license fees payable over several years upon achievement of certain milestones. The Company also expects to receive a royalty based on the sales of the THATIC JV’s products to be developed on the basis of such Licensed IP. The Company classifies Licensed IP income and royalty income, associated with the February 2016 agreement, as licensing gain within operating income. In March 2017, the Company entered into a development and intellectual property agreement (Development and IP) with the THATIC JV, and also expects to receive a royalty based on the sales of the THATIC JV’s products to be developed on the basis of such agreement. The Company classifies Development and IP income and royalty income, associated with the March 2017 agreement, as revenue once earned. In addition, from time to time, the Company enters into certain agreements with the THATIC JV to provide other services primarily related to research and development. During 2019 and 2017 , the Company recognized $60 million and $52 million as licensing gain associated with the Licensed IP. During 2018 , the Company recognized $86 million of IP-related revenue upon completion of all technology milestones under the Development and IP agreement. The Company’s receivable from the THATIC JV for the above agreements was $13 million and $18 million as of December 28, 2019 and December 29, 2018 , respectively, included in Prepayment and receivables—related parties on its consolidated balance sheets. In June 2019, the U.S. Commerce Department’s Bureau of Industry and Security added certain Chinese entities to the Entity List, including THATIC and the THATIC JV. The Company is complying with U.S. law pertaining to the Entity List designation. |
GLOBALFOUNDRIES
GLOBALFOUNDRIES | 12 Months Ended |
Dec. 28, 2019 | |
Related Party Transactions [Abstract] | |
GLOBALFOUNDRIES | GLOBALFOUNDRIES In March 2009, the Company and GLOBALFOUNDRIES Inc. (GF) entered into a Wafer Supply Agreement (WSA) under which the Company would purchase wafers from GF. The WSA, which has been amended from time to time, governs the terms by which the Company purchases products manufactured by GF through March 1, 2024. Pursuant to the WSA and its amendments, the Company is required to purchase all of its microprocessor and APU product requirements and a certain portion of its GPU product requirements from GF manufactured at process nodes larger than 7 nanometer (nm), with limited exceptions. Under the terms of the WSA, the Company has minimum annual wafer purchase targets through 2021. If the Company fails to meet the agreed wafer purchase target during a calendar year, it will be required to pay to GF a portion of the difference between the actual wafer purchases and the applicable annual purchase target. The Company also agreed to continue to make quarterly payments to GF based on the volume of certain wafers purchased from another wafer foundry. On August 30, 2016, in consideration for the limited waiver and rights under the WSA Sixth Amendment, the Company entered into a warrant agreement (the Warrant Agreement) with West Coast Hitech L.P. (WCH), a wholly-owned subsidiary of Mubadala Development Company PJSC (Mubadala). Under the Warrant Agreement, WCH and its permitted assigns were entitled to purchase 75 million shares of the Company’s common stock at a purchase price of $5.98 per share. On February 13, 2019, WCH exercised its warrant to purchase 75 million shares of the Company’s common stock at a purchase price of $5.98 per share for a total amount of $449 million . Through May 15, 2019, GF was a related party of the Company because Mubadala and Mubadala Technology Investments LLC (Mubadala Tech, a party to the WSA) were affiliated with WCH, and a director of the Company’s Board of Directors (the Board) was associated with Mubadala. GF, WCH and Mubadala Tech are wholly-owned subsidiaries of Mubadala. Effective May 15, 2019, the director of the Board associated with Mubadala retired from the Board, and as a result, GF was no longer considered a related party of the Company. All prior period related party classifications on the financial statements for GF have been reclassified to conform to the current period presentation. The Company’s total purchases from GF related to wafer manufacturing, research and development activities and other for 2019 (through May 15, 2019), 2018 and 2017 were $0.5 billion , $1.6 billion and $1.1 billion , respectively. Included in the total purchases were amounts related to the volume of certain wafers purchased from another wafer foundry, as agreed by the Company and GF. As of December 29, 2018, the amount of prepayment and receivables related to GF was $18 million and the amount of payable to GF was $326 million . |
Goodwill
Goodwill | 12 Months Ended |
Dec. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The carrying amount of goodwill as of both December 28, 2019 and December 29, 2018 was $289 million , which was fully allocated to reporting units within the Company’s Enterprise, Embedded and Semi-Custom segment. In the fourth quarters of 2019 and 2018 , the Company conducted its annual impairment tests of goodwill and concluded that there was no goodwill impairment with respect to its reporting units. |
Debt, Secured Revolving Facilit
Debt, Secured Revolving Facility and Secured Revolving Line of Credit | 12 Months Ended |
Dec. 28, 2019 | |
Debt Disclosure [Abstract] | |
Debt, Secured Revolving Facility and Secured Revolving Line of Credit | Debt, Secured Revolving Facility and Secured Revolving Line of Credit Debt The Company’s total debt as of December 28, 2019 and December 29, 2018 consisted of: December 28, December 29, (In millions) 6.75% Notes $ — $ 66 7.50% Notes 312 337 7.00% Notes — 250 2.125% Notes 251 805 Secured Revolving Line of Credit — 70 Total debt (principal amount) $ 563 $ 1,528 Unamortized debt discount associated with 2.125% Notes (73 ) (262 ) Unamortized debt issuance costs (4 ) (16 ) Total debt (net) $ 486 1,250 Less: current portion — (136 ) Total debt, less current portion $ 486 $ 1,114 2.125% Convertible Senior Notes Due 2026 In September 2016, the Company issued $805 million in aggregate principal amount of 2.125% Convertible Senior Notes due 2026 ( 2.125% Notes). The 2.125% Notes are general unsecured senior obligations of the Company. The interest is payable semi-annually in March and September of each year, commencing in March 2017. The 2.125% Notes mature on September 1, 2026. However, as outlined in the indenture governing the 2.125% Notes, holders of the 2.125% Notes may convert them at their option during certain time periods and upon the occurrence of one of the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on September 30, 2016 (and only during such calendar quarter), if the last reported sale price of the Company’s common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day (equivalent to an initial conversion price of approximately $8.00 per share of common stock); (2) during the five business day period after any ten consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events. On or after June 1, 2026 and until the close of business on the business day immediately preceding the maturity date, holders may convert their notes at any time regardless of the foregoing circumstances. Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock at the Company’s election. The event described in (1) above was met during the fourth calendar quarter of 2019 and, as a result, the 2.125% Notes are convertible at the option of the holder from January 1, 2020 and remain convertible until March 31, 2020. During 2019, the Company converted $554 million principal amount of its 2.125% Notes through the issuance of approximately 69 million shares of the Company’s common stock at the conversion price of $8.00 per share and an aggregate cash payment of $56 million . As of December 28, 2019 , the Company had $251 million principal of its 2.125% Notes outstanding. The Company’s current intent is to deliver shares of its common stock upon conversion of the 2.125% Notes. As such, no sinking fund is provided for the 2.125% Notes and the Company continued to classify the carrying value of the liability component of the 2.125% Notes as long-term debt and the equity component of the 2.125% Notes as permanent equity on its consolidated balance sheet as of December 28, 2019 . The determination of whether or not the 2.125% Notes are convertible is performed on a calendar-quarter basis. The 2.125% Notes consisted of the following: December 28, December 29, (In millions) Principal $ 251 $ 805 Unamortized debt discount (1) (73 ) (262 ) Unamortized debt issuance costs (3 ) (11 ) Net carrying amount $ 175 $ 532 Carrying amount of the equity component, net (2) $ 95 $ 305 (1) Included in the consolidated balance sheets within Long-term debt, net and amortized over the remaining life of the notes using the effective interest rate method. (2) Included in the consolidated balance sheets within additional paid-in capital, net of $3 million in equity issuance costs. As of December 28, 2019 , the remaining life of the 2.125% Notes was approximately 81 months. Based on the closing price of the Company’s common stock of $46.18 on December 27, 2019, the last trading day of 2019, the if-converted value of the 2.125% Notes exceeded its principal amount by approximately $1.2 billion . The effective interest rate of the liability component of the 2.125% Notes is 8% . This interest rate was based on the interest rates of similar liabilities at the time of issuance that did not have associated conversion features. The following table sets forth total interest expense recognized related to the 2.125% Notes for the year ended December 28, 2019 : December 28, December 29, (In millions) Contractual interest expense $ 15 $ 17 Interest cost related to amortization of debt issuance costs $ 1 $ 1 Interest cost related to amortization of the debt discount $ 22 $ 24 6.75% Senior Notes Due 2019 On February 26, 2014 , the Company issued $600 million of its 6.75% Senior Notes due 2019 ( 6.75% Notes). The 6.75% Notes were general unsecured senior obligations of the Company. Interest was 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 were governed by the terms of an indenture (the 6.75% Indenture) dated February 26, 2014 between the Company and Wells Fargo Bank, N.A., as trustee. In 2016, the Company repurchased $404 million in aggregate principal amount of its 6.75% Notes pursuant to a partial tender offer for $442 million . In 2017, the Company settled $30 million in aggregate principal amount of its 6.75% Notes, of which $26 million was settled in cash and $5 million was settled in treasury stock. During 2018 , the Company settled $101 million in aggregate principal amount of its 6.75% Notes for $14 million in cash and $87 million in treasury stock at a weighted-average cost of $9.04 per share. During 2019 , the Company redeemed the remaining $66 million in aggregate principal amount of its 6.75% Notes with a combination of cash and treasury stock. 7.50% Senior Notes Due 2022 On August 15, 2012 , the Company issued $500 million of its 7.50% Senior Notes due 2022 ( 7.50% Notes). The 7.50% Notes are general unsecured senior obligations of the Company. Interest is payable on February 15 and August 15 of each year beginning February 15, 2013 until the maturity date of August 15, 2022 . The 7.50% Notes are governed by the terms of an indenture (the 7.50% Indenture) dated August 15, 2012 between the Company and Wells Fargo Bank, N.A., as trustee. In 2014, the Company repurchased $25 million in aggregate principal amount of its 7.50% Notes in open market transactions for $24 million . In 2016, the Company repurchased $125 million in aggregate principal amount of its 7.50% Notes pursuant to a partial tender offer for $135 million . In 2017, the Company settled $3 million in aggregate principal amount of its 7.50% Notes in treasury stock. In 2018 , the Company settled $10 million in aggregate principal amount of its 7.50% Notes in treasury stock at a weighted-average cost of $9.01 per share. During 2019 , the Company repurchased $25 million in aggregate principal amount of its 7.50% Notes in cash. As of December 28, 2019 , the outstanding aggregate principal amount of the 7.50% Notes was $312 million . Prior to August 15, 2022, the Company may redeem some or all of the 7.50% Notes at a price equal to 100% of the principal amount plus accrued and unpaid interest and a “make whole” premium (as defined in the 7.50% Indenture). Holders have the right to require the Company to repurchase all or a portion of the 7.50% Notes in the event that the Company undergoes a change of control as defined in the 7.50% Indenture, at a repurchase price of 101% of the principal amount plus accrued and unpaid interest. Additionally, an event of default (as defined in the 7.50% Indenture) may result in the acceleration of the maturity of the 7.50% Notes. 7.00% Senior Notes Due 2024 On June 16, 2014 , the Company issued $500 million of its 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, N.A., as trustee. In 2016, the Company settled $84 million in aggregate principal amount of its 7.00% Notes for $77 million in cash and $8 million in treasury stock. In 2017, the Company settled $105 million in aggregate principal amount of its 7.00% Notes for $84 million in cash and $26 million in treasury stock. In 2018 , the Company settled $61 million in aggregate principal amount of its 7.00% Notes for $26 million in cash and $35 million in treasury stock at a weighted-average cost of $9.42 per share. During 2019 , the Company repurchased the remaining $250 million in aggregate principal amount of its 7.00% Notes with a combination of cash and treasury stock. Debt Covenants and Seniority The 7.50% Notes require the Company to comply with certain financial covenants and a number of restrictive covenants. The 7.50% Notes and 2.125% Notes rank equally with the Company’s existing and future senior debt and are senior to all of the Company’s future subordinated debt. The 7.50% Notes and 2.125% Notes rank junior to all of the Company’s future senior secured debt to the extent of the collateral securing such debt and are structurally subordinated to all existing and future debt and liabilities of the Company’s subsidiaries. Loss from Debt Redemption, Repurchase and Conversion In aggregate, during 2019, the Company recorded $176 million of aggregate losses from the redemption, repurchase and conversion of debt noted above in Other expense, net on its consolidated statement of operations. Potential Repurchase of Outstanding Notes The Company may elect to purchase or otherwise retire the 7.50% Notes and 2.125% Notes with cash, stock or other assets from time to time in open market or privately negotiated transactions either directly or through intermediaries or by tender offer when the Company believes the market conditions are favorable to do so. Secured Revolving Facility On June 7, 2019 , the Company entered into a secured revolving credit facility for up to $500 million (the Secured Revolving Facility) pursuant to a credit agreement by and among the Company, as borrower, the lenders party thereto and Wells Fargo Bank, National Association, as administrative agent (the Credit Agreement). The Secured Revolving Facility consists of a $500 million , five-year secured revolving loan facility, including a $50 million swingline subfacility and a $75 million sublimit for letters of credit. The Company’s obligations under the Credit Agreement are secured by a lien on substantially all of the Company’s property, other than intellectual property. The Credit Agreement also provides the ability to increase the Secured Revolving Facility or incur incremental term loans or other incremental equivalent debt by an amount not to exceed certain amounts as set forth in the Credit Agreement. The Company’s available borrowings under the Secured Revolving Facility are also subject to reduction by an amount equal to the net cash proceeds of (i) any debt issuances not permitted by the Secured Revolving Facility and (ii) any non-ordinary course asset sales, in excess of $250 million , if such net cash proceeds are not reinvested by the Company within twelve months of receipt. Borrowings under the Secured Revolving Facility bear interest at a variable rate based upon, at the Company’s option, either the LIBOR rate or the base rate (in each case, as customarily defined) plus an applicable margin. The applicable margin for LIBOR rate loans ranges, based on an applicable total leverage ratio, from 1.00% to 1.75% per annum, and the applicable margin for base rate loans ranges from 0.00% to 0.75% per annum. The Company is required to pay fees on the undrawn portion available under the Secured Revolving Facility and in respect of outstanding letters of credit. In the event the LIBOR rate is not available, the agreement allows the Company to use the base rate. The Credit Agreement contains customary affirmative and negative covenants, as well as a total leverage covenant requiring the Company to maintain a maximum ratio of consolidated funded debt to consolidated EBITDA of 4.00 :1.00 and an interest coverage covenant requiring the Company to maintain a minimum ratio of consolidated EBITDA to consolidated cash interest expense of 3.00 :1.00. The Credit Agreement also contains customary events of default, which if they occur, could result in the termination of commitments under the Secured Revolving Facility, the declaration that all outstanding loans are immediately due and payable in whole or in part and the requirement to maintain cash collateral deposits in respect of outstanding letters of credit. As of December 28, 2019 , there were no borrowings outstanding under the Credit Agreement, and the Company was in compliance with all required covenants under the Credit Agreement as of December 28, 2019 . As of December 28, 2019 , the Company had $14 million of letters of credit outstanding under the Credit Agreement. Secured Revolving Line of Credit On June 7, 2019, in connection with entering into the Credit Agreement as described above, the Company repaid its outstanding loan balance of $70 million under the secured revolving line of credit (Secured Revolving Line of Credit) and terminated the Amended and Restated Loan and Security Agreement dated as of April 14, 2015, as amended, among the Company, a group of lenders, and Bank of America, N.A., acting as agent for the lenders. Future Payments on Total Debt As of December 28, 2019 , the Company’s future debt payment obligations for the respective fiscal years were as follows: Term Debt (Principal only) (In millions) 2020 $ — 2021 — 2022 312 2023 — 2024 — 2025 and thereafter 251 Total $ 563 |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 28, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Financial Instruments | Financial Instruments Cash, Cash Equivalents, and Marketable Securities Cash and financial instruments measured and recorded at fair value on a recurring basis, which approximates amortized cost, as of December 28, 2019 and December 29, 2018 are summarized below: Total Fair Cash and (In millions) December 28, 2019 Cash $ 1,465 $ 1,465 $ — Level 1 (1) Government money market funds $ 1 $ 1 $ — Total level 1 $ 1 $ 1 $ — Level 2 (2) Commercial paper $ 37 $ — $ 37 Total level 2 $ 37 $ — $ 37 Total $ 1,503 $ 1,466 $ 37 Total Fair Cash and (In millions) December 29, 2018 Cash $ 315 $ 315 $ — Level 1 (1) Government money market funds $ 275 $ 275 $ — Total level 1 $ 275 $ 275 $ — Level 2 (2) Commercial paper $ 566 $ 488 $ 78 Total level 2 $ 566 $ 488 $ 78 Total $ 1,156 $ 1,078 $ 78 (1) Level 1 fair value estimates are based on quoted prices for identical instruments in active markets. (2) Level 2 fair value estimates are based on quoted prices for identical or comparable instruments in markets that are not active or comparable instruments in active markets. In addition to those amounts presented above, as of December 28, 2019 and December 29, 2018 , the Company had approximately $4 million and $5 million , respectively, of investments in money market funds, used as collateral for letters of credit deposits, which were included in Other current assets on the Company’s consolidated balance sheets. As of December 28, 2019 and December 29, 2018 , the Company also had approximately $30 million and $21 million , respectively, of investments in mutual funds held in a Rabbi trust established for the Company’s deferred compensation plan, which were included in Other assets on the Company’s consolidated balance sheets. These government money market funds and 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. Financial Instruments Not Recorded at Fair Value on a Recurring Basis. The Company carries its certain 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: December 28, 2019 December 29, 2018 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value (In millions) Short-term debt $ — $ — $ 136 $ 136 Long-term debt, net (1) $ 486 $ 1,823 $ 1,114 $ 2,428 (1) Carrying amounts of long-term debt are net of unamortized debt issuance costs of $4 million and $16 million as of December 28, 2019 and December 29, 2018 , respectively, and net of $73 million and $262 million unamortized debt discount associated with the 2.125% Notes as of December 28, 2019 and December 29, 2018 , respectively. The carrying amounts above do not include the equity component related to the conversion feature of the 2.125% Notes of $95 million and $305 million as of December 28, 2019 and December 29, 2018 , respectively. The estimated fair value of the Company’s short-term and long-term debt are based on Level 2 inputs. The Company’s 2.125% Notes, included in Long-term debt, net, above, were convertible at the option of the holder as of December 28, 2019 . The estimated fair value of the 2.125% Notes takes into account the value of the Company’s stock price of $46.18 as of December 28, 2019 and the initial conversion price of approximately $8.00 per share of common stock. 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 and Foreign Currency Forward Contracts not Designated as Hedges The following table shows the amount of losses included in accumulated other comprehensive income (loss) (AOCI), the amount of losses 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 losses included in other expense, net, related to contracts not designated as hedging instruments which was allocated in the consolidated statements of operations: Year Ended December 28, 2019 December 29, 2018 Cost of sales Research and development Marketing, general and administrative Other expense, net Research and development Marketing, general and administrative Other expense, net (In millions) Contracts designated as cash flow hedging instruments Losses reclassified from AOCI into earnings $ (1 ) $ (4 ) $ (1 ) $ — $ (4 ) $ (1 ) $ — Contracts not designated as hedging instruments Losses recognized in earnings — — — (1 ) — — (3 ) Total losses $ (1 ) $ (4 ) $ (1 ) $ (1 ) $ (4 ) $ (1 ) $ (3 ) 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 of the Company’s foreign currency derivative contracts depending on whether the foreign currency forward contracts were a gain or loss position. These amounts were recorded in the Company’s consolidated balance sheets in either Other current assets or Other current liabilities. December 28, December 29, (In millions) Foreign Currency Forward Contracts - gains (losses) Contracts designated as cash flow hedging instruments - gains $ 2 $ 1 Contracts designated as cash flow hedging instruments - losses $ (2 ) $ (8 ) For the foreign currency contracts designated as cash flow hedges, the ineffective portions of the hedging relationship and the amounts excluded from the assessment of hedge effectiveness were immaterial. As of December 28, 2019 and December 29, 2018 , the notional values of the Company’s outstanding foreign currency forward contracts were $739 million and $396 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 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 28, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Unrealized holding gains or losses on the Company’s available-for-sale debt securities and unrealized holding gains and losses on derivative financial instruments qualifying as cash flow hedges are included in other comprehensive income (loss). The table below summarizes the changes in accumulated other comprehensive income (loss) for the years ended December 28, 2019 and December 29, 2018 : Year Ended December 28, 2019 December 29, 2018 Unrealized gains (losses) on cash flow hedges Unrealized gains (losses) on cash flow hedges Beginning balance $ (8 ) $ 6 Unrealized gain (losses) arising during the period, net of tax of zero 2 (19 ) Reclassification adjustment for gains realized and included in net income, net of tax of zero 6 5 Total other comprehensive income (loss) 8 (14 ) Ending balance $ — $ (8 ) |
Concentrations of Credit and Op
Concentrations of Credit and Operation Risk | 12 Months Ended |
Dec. 28, 2019 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Credit and Operation Risk | Concentrations of Credit and Operation Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of investments in available-for-sale debt securities, trade receivables and derivative financial instruments used in hedging activities. The Company places its investments with high credit quality financial institutions and, by policy, limits the amount of credit exposure with any one financial institution. At the time an investment is made, investments in commercial paper of industrial firms and financial institutions are rated A1, P1 or better. The Company invests in tax-exempt securities including municipal notes and bonds and bonds that are rated A, A2 or better and repurchase agreements, each of which have securities of the type and quality listed above as collateral. The Company believes that concentrations of credit risk with respect to trade receivables are limited because a large number of geographically diverse customers make up the Company’s customer base, thus diluting the trade credit risk. The Company’s top three customers with the highest accounts receivable balances each accounted for approximately 15% , 9% and 8% , respectively, of the total consolidated accounts receivable balance as of December 28, 2019 and 16% , 12% and 7% , respectively, of the total consolidated accounts receivable balance as of December 29, 2018 . However, the Company does not believe the receivable balance from these customers represents a significant credit risk based on past collection experience and review of their current credit quality. The Company manages its exposure to customer credit risk through credit limits, credit lines, ongoing monitoring procedures and credit approvals. Furthermore, the Company performs in-depth credit evaluations of all new customers and, at intervals, for existing customers. From this, the Company may require letters of credit, bank or corporate guarantees or advance payments if deemed necessary. The Company’s existing derivative financial instruments are with large international financial institutions of investment grade credit rating. The Company does not believe that there is significant risk of nonperformance by these counterparties because the Company monitors their credit rating on an ongoing basis. By using derivative instruments, the Company is subject to credit and market risk. If a counter-party fails to fulfill its performance obligations under a derivative contract, the Company’s credit risk will equal the fair value of the derivative instrument. Generally, when the fair value of a derivative contract is positive, the counter-party owes the Company, thus creating a receivable risk for the Company. Based upon certain factors including a review of the credit default swap rates for the Company’s counter-parties, the Company determined its counter-party credit risk to be immaterial. At December 28, 2019 , the Company’s obligations under the contracts did not exceed counter-parties’ obligations. The Company is dependent on certain equipment and materials from a limited number of suppliers and relies on a limited number of foreign companies to supply the majority of certain types of integrated circuit packages for back-end manufacturing operations. Similarly, certain non-proprietary materials or components such as memory, PCBs, substrates and capacitors used in the manufacture of the Company’s graphics products are currently available from only a limited number of sources. Interruption of supply or increased demand in the industry could cause shortages and price increases in various essential materials. If the Company or its third-party manufacturing suppliers are unable to procure certain of these materials or its foundries are unable to procure materials for manufacturing its products, its business would be materially adversely affected. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 28, 2019 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Basic earnings (loss) per share is computed based on the weighted-average number of shares outstanding. Diluted earnings (loss) per share is computed based on the weighted-average number of shares outstanding plus potentially dilutive shares outstanding during the period. Potentially dilutive shares are determined by applying the treasury stock method to the assumed exercise of outstanding stock options, the assumed vesting of outstanding RSUs, the assumed issuance of common stock under the employee stock purchase plan (ESPP) and the assumed exercise of the warrants. Potentially dilutive shares issuable upon conversion of the 2.125% Convertible Senior Notes due 2026 ( 2.125% Notes) are calculated using the if-converted method. The following table sets forth the components of basic and diluted earnings (loss) per share: 2019 2018 2017 (In millions, except per share amounts) Numerator-Net income (loss): Numerator for basic and diluted earnings per share 341 337 (33 ) Denominator-Weighted average shares: Denominator for basic earnings per share 1,091 982 952 Effect of potentially dilutive shares: Employee equity incentive plans and warrants 29 82 — Denominator for diluted earnings per share 1,120 1,064 952 Earnings (loss) per share: Basic $ 0.31 $ 0.34 $ (0.03 ) Diluted $ 0.30 $ 0.32 $ (0.03 ) Potential shares from employee equity incentive plans and the conversion of the 2.125% Notes totaling 93 million and 105 million shares for 2019 and 2018 , respectively, and potential shares from employee equity incentive plans, the conversion of the 2.125% Notes and the warrants under the Warrant Agreement totaling 189 million shares for 2017 , were not included in the diluted earnings (loss) per share calculation as their inclusion would have been anti-dilutive. |
Common Stock and Stock-Based In
Common Stock and Stock-Based Incentive Compensation Plans | 12 Months Ended |
Dec. 28, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Common Stock and Stock-Based Incentive Compensation Plans | Common Stock and Stock-Based Incentive Compensation Plans Shares Outstanding Shares of common stock outstanding were as follows: Year Ended December 28, December 29, December 30, (In millions) Number of shares Balance, beginning of period 1,005 967 935 Common stock issued under employee equity 20 31 32 Issuance of common stock upon warrant exercise 75 — — Issuance of common stock to partially settle convertible debt 69 — — Issuance of treasury stock to partially settle debt 1 7 — Balance, end of period 1,170 1,005 967 The Company’s stock-based incentive programs are intended to attract, retain and motivate highly qualified employees. On April 29, 2004, the Company’s stockholders approved the 2004 Equity Incentive Plan (the 2004 Plan). The Company introduced the Employee Stock Purchase Plan (ESPP) in the fourth quarter of 2017. Under the 2004 Plan, stock options generally vest and become exercisable over a three -year period from the date of grant and expire within ten years after the grant date. Unvested shares that are reacquired by the Company from forfeited outstanding equity awards become available for grant and may be reissued as new awards. Under the 2004 Plan, the Company can grant (i) stock options, and (ii) RSUs, including time-based RSUs and Performance-based Restricted Stock Units (PRSUs). Stock Options. A stock option is the right to purchase shares of the Company’s common stock at a fixed exercise price for a fixed period of time. Under the 2004 Plan, nonstatutory and incentive stock options may be granted. The exercise price of the shares subject to each nonstatutory stock option and incentive stock option cannot be less than 100% of the fair market value of the Company’s common stock on the date of the grant. The exercise price of each option granted under the 2004 Plan must be paid in full at the time of the exercise. Time-based RSUs. Time-based RSUs are awards that can be granted to any employee, director or consultant and that obligate the Company to issue a specific number of shares of the Company’s common stock in the future if the vesting terms and conditions are satisfied. The purchase price for the shares is $0.00 per share. Performance-based Restricted Stock Units. Performance-based Restricted Stock Units (PRSUs) can be granted to certain of the Company’s senior executives. The performance metrics can be financial performance, non-financial performance and/or market conditions. Each PRSU award reflects a target number of shares (Target Shares) that may be issued to an award recipient before adjusting based on the Company’s financial performance, non-financial performance and/or market conditions. The actual number of shares that a grant recipient receives at the end of the period may range from 0% to 250% of the Target Shares granted, depending upon the degree of achievement of the performance target designated by each individual award. Employee Stock Purchase Plan. Under the ESPP, eligible employees who participate in an offering period may have up to 10% of their earnings withheld, up to certain limitations, to purchase shares of common stock at 85% of the lower of the fair market value on the first or the last business day of the six -month offering period. The offering periods commence in May and November each year. As of December 28, 2019 , the Company had 61 million shares of common stock that were available for future grants and 30 million shares reserved for issuance upon the exercise of outstanding stock options or the vesting of unvested restricted stock units. In addition, the Company had 42 million shares of common stock that were available for issuance under the ESPP. Valuation and Expense Stock-based compensation expense was allocated in the consolidated statements of operations as follows: 2019 2018 2017 (In millions) Cost of sales $ 6 $ 4 $ 2 Research and development 129 91 57 Marketing, general, and administrative 62 42 38 Total stock-based compensation expense, net of tax of $0 $ 197 $ 137 $ 97 During 2019 , 2018 and 2017 , the Company did no t realize any excess tax benefits related to stock-based compensation and therefore the Company did not record any related financing cash flows. Stock Options. The weighted-average estimated fair value of employee stock options granted for the years ended December 28, 2019 , December 29, 2018 and December 30, 2017 was $13.31 , $7.62 and $5.46 per share, respectively, using the following assumptions: 2019 2018 2017 Expected volatility 52.60% - 56.51% 51.51% - 60.46% 57.26 % Risk-free interest rate 1.53% - 2.51% 2.20% - 2.83% 1.68 % Expected dividends — % — % — % Expected life (in years) 3.94 - 3.95 3.92 - 3.94 3.92 The Company uses a combination of the historical volatility of its common stock and the implied volatility for publicly traded options on the Company’s common stock as the expected volatility assumption required by the lattice-binomial model. The risk-free interest rate is based on the rate for a U.S. Treasury zero-coupon yield curve with a term that approximates the expected life of the option grant at the date closest to the option grant date. The expected dividend yield is zero as the Company does not expect to pay dividends in the near future. The expected term of employee stock options represents the weighted-average period the stock options are expected to remain outstanding and is a derived output of the lattice-binomial model. The following table summarizes stock option activity and related information: Outstanding Number Weighted- Average Exercise Price Aggregate Intrinsic Value Weighted-Average Remaining Contractual Life (In millions, except share price) Balance as of December 29, 2018 13 $ 5.33 Granted 1 $ 32.86 Canceled (1 ) $ 17.52 Exercised (3 ) $ 3.74 Balance as of December 28, 2019 10 $ 7.56 $ 226 3.20 Exercisable December 28, 2019 9 $ 4.56 $ 215 2.72 The total intrinsic value of stock options exercised for 2019 , 2018 and 2017 was $84 million , $67 million and $27 million , respectively. As of December 28, 2019 , the Company had $12 million of total unrecognized compensation expense related to stock options, which will be recognized over the weighted-average period of 1.87 years . Time-based RSUs. The weighted-average grant date fair values of time-based RSUs granted during 2019 , 2018 and 2017 were $32.52 , $17.66 and $12.65 per share, respectively. The following table summarizes time-based RSU activity and related information: Number of Shares Weighted- Average Fair Value Aggregate Intrinsic Value Weighted-Average Remaining Contractual Life (in years) (In millions except share price) Unvested shares as of December 29, 2018 24 $ 12.86 Granted 8 $ 32.52 Forfeited (2 ) $ 16.49 Vested (12 ) $ 10.39 Unvested shares as of December 28, 2019 18 $ 22.93 $ 503 1.19 The total fair value of time-based RSUs vested during 2019 , 2018 and 2017 was $395 million , $315 million and $294 million , respectively. As of December 28, 2019 , the Company had $322 million of total unrecognized compensation expense related to time-based RSUs, which will be recognized over the weighted-average period of 1.80 years . PRSUs. The weighted-average grant date fair values of PRSUs granted during 2019 , 2018 and 2017 were $50.00 , $21.67 and $17.18 , respectively, using the following assumptions: 2019 2018 2017 Expected volatility 60.54% - 62.52% 63.77% - 67.97% 64.39 % Risk-free interest rate 1.56% - 2.49% 2.06% - 2.82% 1.50 % Expected dividends — % — % — % Expected term (in years) 2.48 - 5.00 2.48 - 3.00 3.00 The Company uses the historical volatility of its common stock and risk-free interest rate based on the rate for a U.S. Treasury zero-coupon yield curve with a term that approximates the expected life of the PRSUs grant at the date closest to the grant date. The expected dividend yield is zero as the Company does not expect to pay dividends in the near future. The expected term of PRSUs represents the weighted-average period the PRSUs are expected to remain outstanding. The following table summarizes PRSU activity and related information: Number Weighted- Aggregate Intrinsic Value Weighted-Average Remaining Contractual Life (in years) (In millions except share price) Unvested shares as of December 29, 2018 2 $ 14.58 Granted 2 $ 50.00 Forfeited — $ 22.39 Vested (1 ) $ 3.60 Unvested shares as of December 28, 2019 3 $ 36.13 $ 90 2.56 The total fair value of PRSUs vested during 2019 , 2018 and 2017 was $65 million , $84 million and $34 million , respectively. As of December 28, 2019 , the Company had $85 million of total unrecognized compensation expense related to PRSUs, which will be recognized over the weighted-average period of 2.56 years . ESPP. The weighted-average grant date fair value for the ESPP during 2019 , 2018 and 2017 was $9.96 , $4.71 and $3.46 per share, respectively, using the following assumptions: 2019 2018 2017 Expected volatility 48.95% - 67.02% 45.88% - 66.66% 56.07 % Risk-free interest rate 1.58% - 2.46% 2.05% - 2.52% 1.36 % Expected dividends — % — % — % Expected term (in years) 0.50 0.50 0.49 The Company uses the historical volatility of its common stock and the risk-free interest rate based on the rate for a U.S. Treasury zero-coupon yield curve with a term that approximates the expected life of the ESPP grant at the date closest to the ESPP grant date. The expected dividend yield is zero as the Company does not expect to pay dividends in the near future. The expected term of the ESPP represents the weighted-average period the ESPP is expected to remain outstanding. During 2019 , 1.8 million and 1.4 million shares of common stock were purchased in each of the two six -month offering periods under the ESPP at a purchase price of $16.18 and $23.77 per share, respectively, resulting in aggregate cash proceeds of $62 million . As of December 28, 2019 , the Company had $9 million of total unrecognized compensation expense related to the ESPP, which will be recognized over the weighted-average period of 0.37 years . |
Retirement Benefit Plans
Retirement Benefit Plans | 12 Months Ended |
Dec. 28, 2019 | |
Retirement Benefits [Abstract] | |
Retirement Benefit Plans | Retirement Benefit Plans The Company provides retirement benefit plans in the United States and certain foreign countries. The Company has a 401(k) retirement plan that allows participating employees in the United States to contribute as defined by the plan and subject to Internal Revenue Service limitations. The Company matches 75% of employees’ contributions up to 6% of their compensation. The Company’s contributions to the 401(k) plan for 2019 , 2018 and 2017 were approximately $25 million , $21 million and $18 million , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income (loss) before income taxes consists of the following: 2019 2018 2017 (In millions) U.S. $ 334 $ 114 $ 53 Non-U.S. 38 214 (68 ) Total pre-tax income (loss) including equity loss in investee $ 372 $ 328 $ (15 ) The provision for (benefit from) income taxes consists of: 2019 2018 2017 (In millions) Current: U.S. Federal $ (13 ) $ 12 $ (3 ) U.S. State and Local 1 — — Non-U.S. 50 (17 ) 37 Total 38 (5 ) 34 Deferred: U.S. Federal — — (15 ) Non-U.S. (7 ) (4 ) (1 ) Total (7 ) (4 ) (16 ) Provision for (benefit from) income taxes $ 31 $ (9 ) $ 18 The table below displays the reconciliation between statutory federal income taxes and the total provision for (benefit from) income taxes. 2019 2018 2017 (In millions) Statutory federal income tax expense (benefit) at 21%, 21% and 35% rate $ 78 $ 69 $ 22 State taxes 1 1 1 Foreign withholding taxes (refund) 22 (29 ) 27 Foreign rate detriment 2 2 — Valuation allowance change (59 ) (64 ) (12 ) Credit monetization — (1 ) (20 ) Tax Reform Act (13 ) 13 — Provision for (benefit from) income taxes $ 31 $ (9 ) $ 18 The income tax provision in 2019 was primarily due to $22 million of tax provision of withholding tax related to cross-border transactions, $22 million tax provision in foreign locations offset by a $13 million benefit for a reduction of U.S. income taxes accrued in the prior year. The income tax provision in 2018 was primarily due to a $36 million refund of withholding tax from a foreign jurisdiction related to a legal settlement from 2010, offset by $13 million of U.S. income taxes resulting from the Tax Reform Act, $7 million tax provision in foreign locations and $7 million of withholding taxes on cross-border transactions. The income tax provision in 2017 was primarily due to $38 million of foreign taxes in profitable locations including $27 million of withholding taxes on cross-border transactions, offset by $1 million of tax benefits for Canadian tax credits and $19 million primarily attributable to the reversal of the valuation allowance on Alternate Minimum Tax (AMT) credit carryovers due to the Tax Reform Act. Deferred income taxes reflect the net tax effects of tax carryovers and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the balances for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities as of December 28, 2019 and December 29, 2018 are as follows: December 28, December 29, 2018 (In millions) Deferred tax assets: Net operating loss carryovers $ 1,455 $ 1,533 Accruals and reserves not currently deductible 245 123 Acquired intangibles and goodwill 45 101 Federal and state tax credit carryovers 617 527 Foreign research and development ITC credits 429 370 Other 159 104 Total deferred tax assets 2,950 2,758 Less: valuation allowance (2,743 ) (2,580 ) Total deferred tax assets, net of valuation allowance 207 178 Deferred tax liabilities: Discount of convertible notes (22 ) (54 ) Undistributed foreign earnings (110 ) (105 ) Other (64 ) (15 ) Total deferred tax liabilities (196 ) (174 ) Net deferred tax assets $ 11 $ 4 The breakdown between deferred tax assets and deferred tax liabilities as of December 28, 2019 and December 29, 2018 is as follows: December 28, December 29, 2018 (In millions) Deferred tax assets $ 22 $ 15 Deferred tax liabilities (11 ) (11 ) Net deferred tax assets $ 11 $ 4 Deferred tax assets are included in Other assets on the consolidated balance sheets. Deferred tax liabilities are included in Other long-term liabilities on the consolidated balance sheets. As of December 28, 2019 , substantially all of the Company’s U.S. and foreign deferred tax assets, net of deferred tax liabilities, continued to be subject to a valuation allowance. The Company evaluates the need for and the amount of a valuation allowance for deferred tax assets based on available evidence whether it is more-likely-than-not (a probability level of more than 50%) that these assets will be realized. In completing this assessment management must consider both objective and subjective factors in its assessment. These factors include, but are not limited to a history of losses in prior years, unique competitiveness of the semiconductor industry, future reversal of existing temporary differences, tax planning strategies, and future taxable income exclusive of reversing temporary differences and loss carryforwards. After evaluating all available evidence, the Company determined that the valuation allowances for the United States and Canada should both be maintained. The Company’s United States federal and state net operating losses carryforwards as of December 28, 2019, were $6.7 billion and $0.5 billion , respectively. The United States federal net operating losses will expire between 2026 through 2037, and the state net operating losses will expire at various dates through 2037. The federal credit of $399 million will expire at various dates between 2020 and 2039. The state credits of $239 million will expire at various dates between 2020 through 2039 except for California R&D credit, which does not expire. The Company also has $365 million of credit carryforward in Canada that will expire between 2023 and 2028. The Tax Reform Act modified the income tax liability in the United States for companies with subsidiaries outside of the United States. As a result of the Tax Reform Act the impact of future distributions of undistributed earnings that are indefinitely reinvested are anticipated to be withholding taxes from local jurisdictions. The amount of cumulative undistributed earnings that are permanently reinvested that could be subject to withholding taxes are $142 million as of December 28, 2019. A reconciliation of the Company's gross unrecognized tax benefits is as follows: 2019 2018 2017 (In millions) Balance at beginning of year $ 49 $ 49 $ 42 Increases for tax positions taken in prior years 5 1 7 Decreases for tax positions taken in prior years — (1 ) (2 ) Increases for tax positions taken in the current year 15 3 3 Decreases for settlements with taxing authorities (3 ) (2 ) — Decreases for lapsing of the statute of limitations (1 ) (1 ) (1 ) Balance at end of year $ 65 $ 49 $ 49 The amount of unrecognized tax benefits that would impact the effective tax rate was $17 million , $9 million and $9 million as of December 28, 2019 , December 29, 2018 and December 30, 2017 , respectively. The Company had no material amounts of accrued interest and accrued penalties related to unrecognized tax benefits as of December 28, 2019 , December 29, 2018 and December 30, 2017 . It is possible the Company may have tax audits close in the next 12 months that could materially change the balance of the uncertain tax benefits; however, the timing of tax audit closures and settlements are highly uncertain. The Company and its subsidiaries have several foreign and U.S. state audits in process at any one point in time. The Company has provided for uncertain tax positions that require a liability under the adopted method to account for uncertainty in income taxes. The Company is subject to taxation in the United States and foreign jurisdictions. Earnings from non-U.S. activities are subject to local country income tax. The material jurisdiction in which the Company is subject to potential examination by the taxing authority is the United States, which is open for years from 2006 onwards due to the net operating losses. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 28, 2019 | |
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). These performance measures include the allocation of expenses to the operating segments based on management’s judgment. The Company has the following two reportable segments: • the Computing and Graphics segment, which primarily includes desktop and notebook processors and chipsets, discrete and integrated graphics processing units (GPUs), data center and professional GPUs and development services. The Company also licenses portions of its IP portfolio. • the Enterprise, Embedded and Semi-Custom segment, which primarily includes server and embedded processors, semi-custom System-on-Chip (SoC) products, development services and technology for game consoles. The Company also licenses portions of its IP portfolio. In addition to these reportable segments, the Company has an All Other category, which is not a reportable segment. This category primarily includes certain expenses and credits that are not allocated to any of the reportable segments because management does not consider these expenses and credits in evaluating the performance of the reportable segments. This category primarily includes employee stock-based compensation expense. The following table provides a summary of net revenue and operating income (loss) by segment for 2019 , 2018 and 2017 . 2019 2018 2017 (In millions) Net revenue: Computing and Graphics $ 4,709 $ 4,125 $ 2,977 Enterprise, Embedded and Semi-Custom 2,022 2,350 2,276 Total net revenue $ 6,731 $ 6,475 $ 5,253 Operating income (loss): Computing and Graphics $ 577 $ 470 $ 92 Enterprise, Embedded and Semi-Custom 263 163 132 All Other (209 ) (182 ) (97 ) Total operating income $ 631 $ 451 $ 127 The following table provides major items included in All Other category: 2019 2018 2017 (In millions) Operating loss: Stock-based compensation expense $ (197 ) $ (137 ) $ (97 ) Impairment of technology licenses — (45 ) — Loss contingency on legal matter (12 ) — — Total operating loss $ (209 ) $ (182 ) $ (97 ) The Company does not discretely allocate assets to its operating segments, nor does management evaluate operating segments using discrete asset information. The Company’s operations outside the United States include research and development activities and sales, marketing and administrative activities. The Company conducts product and system research and development activities for its products in the United States with additional design and development engineering teams located in Canada, China, India, Taiwan and Singapore. The Company’s material sales and marketing offices are located in the United States, Latin America, Europe and Asia. The following table summarizes sales to external customers by geographic regions based on billing location of the customer: 2019 2018 2017 (In millions) United States $ 1,764 $ 1,327 $ 1,360 China (including Hong Kong) 1,736 1,319 974 Japan 840 1,225 1,215 Europe 762 470 263 Taiwan 719 1,197 738 Singapore 597 728 550 Other countries 313 209 153 Total sales to external customers $ 6,731 $ 6,475 $ 5,253 The following table summarizes Property and equipment, net by geographic areas: 2019 2018 (In millions) United States $ 300 $ 232 Canada 99 51 China 36 17 Singapore 33 29 Other countries 32 19 Total property and equipment, net $ 500 $ 348 The following table summarizes sales to major customers that accounted for at least 10% of the Company’s consolidated net revenue for the respective years: 2019 2018 2017 Customer A 12 % 19 % 23 % Customer B * 11 % 15 % * Less than 10% Sales to customers A and B consisted of products from the Company’s Enterprise, Embedded and Semi-Custom segment. |
Other Expense, Net
Other Expense, Net | 12 Months Ended |
Dec. 28, 2019 | |
Income Statement Related Disclosures [Abstract] | |
Other Expense, Net | Other Expense, Net The following table summarizes the components of Other expense, net: 2019 2018 2017 (In millions) Interest income $ 15 $ 18 $ 6 Gain on sale of 85% ATMP JV — — 3 Loss on debt redemption, repurchase and conversion (176 ) (12 ) (12 ) Other (4 ) (6 ) (6 ) Other expense, net $ (165 ) $ — $ (9 ) |
Commitments and Guarantees
Commitments and Guarantees | 12 Months Ended |
Dec. 28, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Guarantees | Commitments and Guarantees Operating Leases The Company has entered into operating and finance leases for its corporate offices, data centers, research and development facilities and certain equipment. The leases expire at various dates through 2028, some of which include options to extend the lease for up to 5 years . For 2019 , 2018 and 2017 , the Company recorded $56 million , $53 million and $44 million , respectively, of operating lease expense, including short-term lease expense. For the year ended December 28, 2019 , the Company recorded $25 million of variable lease expense, which primarily included operating expenses and property taxes associated with the usage of facilities under the operating leases. For the year ended December 28, 2019 , cash paid for operating leases included in operating cash flows was $47 million . The Company’s finance leases and short-term leases are immaterial. Supplemental information related to leases is as follows: December 28, Weighted-average remaining lease term – operating leases 6.26 years Weighted-average discount rate – operating leases 5.55 % Future minimum lease payments under non-cancellable operating lease liabilities as of December 28, 2019 are as follows: Year (In millions) 2020 $ 54 2021 48 2022 44 2023 37 2024 33 2025 and thereafter 71 Total minimum lease payments 287 Less: interest (45 ) Present value of net minimum lease payments 242 Less: current portion (43 ) Total long-term operating lease liabilities $ 199 Certain other operating leases contain provisions for escalating lease payments subject to changes in the consumer price index. Purchase and Other Contractual Obligations The Company’s purchase obligations primarily include the Company’s obligations to purchase wafers and substrates from third parties. The Company also had other contractual obligations, primarily included in Other long-term liabilities and Accrued liabilities on its consolidated balance sheet, which primarily consisted of $146 million of payments due under certain software and technology licenses and IP licenses that will be paid through 2022. Total future unconditional purchase obligations as of December 28, 2019 were as follows: Year (In millions) 2020 $ 1,731 2021 642 2022 58 2023 5 2024 2 2025 and thereafter 7 Total unconditional purchase commitments $ 2,445 Warranties and Indemnities Changes in the Company’s estimated liability for product warranty during the years ended December 28, 2019 and December 29, 2018 are as follows: December 28, December 29, (In millions) Beginning balance $ 13 $ 12 New warranties issued during the period 31 27 Settlements during the period (29 ) (28 ) Changes in liability for pre-existing warranties during the period, including expirations — 2 Ending balance $ 15 $ 13 In addition to product warranties, the Company from time to time in its normal course of business indemnifies other parties with whom it enters into contractual relationships, including customers, lessors and parties to other transactions with the Company, with respect to certain matters. In these limited matters, the Company has agreed to hold certain third parties harmless against specific types of claims or losses such as those arising from a breach of representations or covenants, third-party claims that the Company’s products when used for their intended purpose(s) and under specific conditions infringe the intellectual property rights of a third party, or other specified claims made against the indemnified party. It is not possible to determine the maximum potential amount of liability under these indemnification obligations due to the unique facts and circumstances that are likely to be involved in each particular claim and indemnification provision. Historically, payments made by the Company under these obligations have not been material. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 28, 2019 | |
Loss Contingency [Abstract] | |
Contingencies | Contingencies Shareholder Derivative Lawsuits (Wessels, Hamilton and Ha) On March 20, 2014, a purported shareholder derivative lawsuit captioned Wessels v. Read, et al. , Case No. 1:14 cv-262486 (Wessels) 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 its 32nm technology and “Llano” product, which statements and omissions, the plaintiffs claim, allegedly operated to artificially inflate the price paid for the Company’s common stock during the period. On April 27, 2015, a similar purported shareholder derivative lawsuit captioned Christopher Hamilton and David Hamilton v. Barnes, et al. , Case No. 5:15-cv-01890 (Hamilton) was filed against the Company (as a nominal defendant only) and certain of its directors and officers in the United States District Court for the Northern District of California. On September 29, 2015, a similar purported shareholder derivative lawsuit captioned Jake Ha v Caldwell, et al., Case No. 3:15-cv-04485 (Ha) was filed against the Company (as a nominal defendant only) and certain of its directors and officers in the United States District Court for the Northern District of California. The lawsuit also seeks a court order voiding the stockholder vote on the Company’s 2015 proxy. The case was transferred to the judge handling the Hamilton Lawsuit and is now Case No. 4:15-cv-04485. The Wessels, Hamilton and Ha shareholder derivative lawsuits were stayed pending resolution of a class action lawsuit captioned Hatamian v. AMD, et al. , C.A. No. 3:14-cv-00226 filed against the Company in the United States District Court for the Northern District of California (the Hatamian Lawsuit). The Hatamian Lawsuit asserted claims against the Company and certain of its officers for alleged violations of Section 10(b) of the Exchange Act of 1934, as amended (the Exchange Act), and SEC Rule 10b-5 concerning certain statements regarding its 32nm technology and “Llano” products. On October 9, 2017, the parties signed a definitive settlement agreement resolving the Hatamian Lawsuit and submitted it to the Court for approval. Under the terms of this agreement, the settlement was funded entirely by certain of the Company’s insurance carriers and the defendants continued to deny any liability or wrongdoing. On March 2, 2018, the court approved the settlement and entered a final judgment in the Hatamian Lawsuit. On January 30, 2018, the Wessels and Hamilton plaintiffs amended their complaints. On February 2, 2018, the Ha plaintiff also filed an amended complaint. On February 22, 2018, the Company filed motions to dismiss the Hamilton and Ha plaintiffs’ amended complaints. On April 2, 2018, the Company filed a demurrer seeking to dismiss the Wessels amended complaint. On July 23, 2018, the Santa Clara Superior Court sustained the Company’s demurrer in the Wessels case, dismissing all claims in that matter with prejudice. The Wessels plaintiff filed a Notice of Appeal on September 27, 2018. On October 4, 2018, the Federal Court issued an order dismissing the Hamilton and Ha amended complaints. The Hamilton plaintiffs filed a Notice of Appeal on October 8, 2018, and the Ha plaintiffs filed a Notice of Appeal on October 15, 2018. On November 19, 2018, the Hamilton and Ha plaintiffs filed a motion seeking summary reversal of the order dismissing their claims. The Company opposed this motion on December 13, 2018, and the Court denied it on February 25, 2019. The Wessels, Hamilton, and Ha appeals are currently pending. Briefing has completed in each appeal. Based upon information presently known to management, the Company believes that the potential liability, if any, will not have a material adverse effect on its financial condition, cash flows or results of operations. Hauck et al. Litigation Since January 19, 2018, three putative class action complaints have been filed against the Company in the United States District Court for the Northern District of California: (1) Diana Hauck et al. v. AMD, Inc., Case No. 5:18-cv-0047, filed on January 19, 2018; (2) Brian Speck et al. v. AMD, Inc. , Case No. 5:18-cv-0744, filed on February 4, 2018; and (3) Nathan Barnes and Jonathan Caskey-Medina, et al. v. AMD, Inc. , Case No. 5:18-cv-00883, filed on February 9, 2018. On April 9, 2018, the court consolidated these cases and ordered that Diana Hauck et al. v. AMD, Inc. serve as the lead case. On June 13, 2018, six plaintiffs (from California, Louisiana, Florida, and Massachusetts) filed a consolidated amended complaint alleging that the Company failed to disclose its processors’ alleged vulnerability to Spectre. Plaintiffs further allege that the Company’s processors cannot perform at their advertised processing speeds without exposing consumers to Spectre, and that any “patches” to remedy this security vulnerability will result in degradation of processor performance. The plaintiffs seek damages under several causes of action on behalf of a nationwide class and four state subclasses (California, Florida, Massachusetts, Louisiana) of consumers who purchased the Company’s processors and/or devices containing AMD processors. The plaintiffs also seek attorneys’ fees, equitable relief, and restitution. Pursuant to the court’s order directing the parties to litigate only eight of the causes of action in the consolidated amended complaint initially, the Company filed a motion to dismiss on July 13, 2018. On October 29, 2018, after the plaintiffs voluntarily dismissed one of their claims, the court granted the Company’s motion and dismissed six causes of action with leave to amend. The plaintiffs filed their amended consolidated complaint on December 6, 2018. On January 3, 2019, the Company again moved to dismiss the subset of claims currently at issue. On April 4, 2019, the court granted the Company’s motion and dismissed all claims currently at issue with prejudice. On May 6, 2019, the court granted the parties’ stipulation and request under Fed. R. Civ. P. 54(b) to enter a partial final judgment and certify for appeal the court’s April 4, 2019 dismissal order, and on that same date, the plaintiffs voluntarily dismissed without prejudice their remaining claims pursuant to an agreement whereby, subject to certain terms and conditions, the Company agreed to toll the statute of limitations and/or statute of repose. On May 30, 2019, the plaintiffs filed a Notice of Appeal with the U.S. Court of Appeals for the Ninth Circuit. Briefing has completed for the appeal. Based upon information presently known to management, the Company believes that the potential liability, if any, will not have a material adverse effect on its financial condition, cash flows or results of operations. Quarterhill Inc. Litigation On July 2, 2018, three entities named Aquila Innovations, Inc. (Aquila), Collabo Innovations, Inc. (Collabo), and Polaris Innovations, Ltd. (Polaris), filed separate patent infringement complaints against the Company in the United States District Court for the Western District of Texas. Aquila alleges that the Company infringes two patents (6,239,614 and 6,895,519) relating to power management; Collabo alleges that the Company infringes one patent (7,930,575) related to power management; and Polaris alleges that the Company infringes two patents (6,728,144 and 8,117,526) relating to control or use of dynamic random-access memory, or DRAM. Each of the three complaints seeks unspecified monetary damages, interest, fees, expenses, and costs against the Company; Aquila and Collabo also seek enhanced damages. Aquila, Collabo, and Polaris each appear to be related to a patent assertion entity named Quarterhill Inc. (formerly WiLAN Inc.). On November 16, 2018, AMD filed answers in the Collabo and Aquila cases and filed a motion to dismiss in the Polaris case. On January 25, 2019, the Company filed amended answers and counterclaims in the Collabo and Aquila cases. On July 22, 2019, the Company’s motion to dismiss in the Polaris case was denied. On August 23, 2019, the Court held a claim construction hearing in each case. Based upon information presently known to management, the Company believes that the potential liability, if any, will not have a material adverse effect on its financial condition, cash flows or results of operations. Dickey Litigation On October 26, 2015, a putative class action complaint captioned Dickey et al. v. AMD , No. 15-cv-04922 was filed against the Company in the United States District Court for the Northern District of California. Plaintiffs allege that the Company misled consumers by using the term “eight cores” in connection with the marketing of certain AMD FX CPUs that are based on the Company’s “Bulldozer” core architecture. The plaintiffs allege these products cannot perform eight calculations simultaneously, without restriction. The plaintiffs seek to obtain damages under several causes of action for a nationwide class of consumers who allegedly were deceived into purchasing certain Bulldozer-based CPUs that were marketed as containing eight cores. The plaintiffs also seek attorneys’ fees. On December 21, 2015, the Company filed a motion to dismiss the complaint, which was granted on April 7, 2016. The plaintiffs then filed an amended complaint with a narrowed putative class definition, which the Court dismissed upon the Company’s motion on October 31, 2016. The plaintiffs subsequently filed a second amended complaint, and the Company filed a motion to dismiss the second amended complaint. On June 14, 2017, the Court issued an order granting in part and denying in part the Company’s motion to dismiss, and allowing the plaintiffs to move forward with a portion of their complaint. On March 27, 2018, plaintiffs filed their motion for class certification. On January 17, 2019, the Court granted plaintiffs’ motion for class certification. The class definition does not encompass the Company’s Ryzen or EPYC processors. On January 31, 2019, the Company filed a petition in the Ninth Circuit Court of Appeals, seeking review of certain aspects of the January 17, 2019 class certification order. On May 9, 2019, the parties attended mediation and reached a tentative settlement. On June 3, 2019, the Ninth Circuit Court of Appeals denied the Company’s petition seeking appellate review of the January 17, 2019 class certification order. On August 9, 2019, the parties executed a formal settlement agreement. On August 23, 2019, plaintiffs filed their motion for preliminary approval of the settlement agreement. On October 4, 2019, the Court granted the motion for preliminary approval of the settlement agreement. Based upon information presently known to management, the Company believes that the settlement will not have a material adverse effect on its financial condition, cash flows or results of operations. Monterey Research Litigation On November 15, 2019, Monterey Research, LLC filed a patent infringement complaint against the Company in the United States District Court for the District of Delaware. Monterey Research alleges that the Company infringes six U.S. patents: 6,534,805 (related to SRAM cell design); 6,629,226 (related to read interface protocols); 6,651,134 (related to memory devices); 6,765,407 (related to programmable digital circuits); 6,961,807 (related to integrated circuits and associated memory systems); and 8,373,455 (related to output buffer circuits). Monterey Research seeks unspecified monetary damages, enhanced damages, interest, fees, expenses, costs, and injunctive relief against the Company. On January 22, 2020, the Company filed a motion to dismiss part of Monterey Research’s complaint. Based upon information presently known to management, the Company believes that the potential liability, if any, will not have a material adverse effect on its financial condition, cash flows or results of operations. Environmental Matters The Company is named as a responsible party on Superfund clean-up orders for three sites in Sunnyvale, California that are on the National Priorities List. Since 1981, the Company has discovered hazardous material releases to the groundwater from former underground tanks and proceeded to investigate and conduct remediation at these three sites. The chemicals released into the groundwater were commonly used in the semiconductor industry in the United States in the wafer fabrication process prior to 1979. In 1991, the Company received Final Site Clean-up Requirements Orders from the California Regional Water Quality Control Board relating to the three sites. The Company has entered into settlement agreements with other responsible parties on two of the orders. During the term of such agreements, other parties have agreed to assume most of the foreseeable costs as well as the primary role in conducting remediation activities under the orders. The Company remains responsible for additional costs beyond the scope of the agreements as well as all remaining costs in the event that the other parties do not fulfill their obligations under the settlement agreements. To address anticipated future remediation costs under the orders, the Company has computed and recorded an estimated environmental liability of approximately $3 million and has not recorded any potential insurance recoveries in determining the estimated costs of the cleanup. The progress of future remediation efforts cannot be predicted with certainty and these costs may change. The Company believes that any amount in addition to what has already been accrued would not be material. Other Legal Matters |
Supplementary Financial Informa
Supplementary Financial Information (unaudited) | 12 Months Ended |
Dec. 28, 2019 | |
Quarterly Financial Data [Abstract] | |
Supplementary Financial Information (unaudited) | Supplementary Financial Information (unaudited) The Company uses a 52 or 53 week fiscal year ending on the last Saturday in December. All quarters of 2019 and 2018 consisted of 13 weeks. (In millions, except per share amounts) 2019 2018 Dec. 28 Sep. 28 June 29 Mar. 30 Dec. 29 Sep. 29 June 30 Mar. 31 Net revenue $ 2,127 $ 1,801 $ 1,531 $ 1,272 $ 1,419 $ 1,653 $ 1,756 $ 1,647 Cost of sales 1,178 1,024 910 751 882 992 1,104 1,050 Gross margin 949 777 621 521 537 661 652 597 Research and development 395 406 373 373 371 363 357 343 Marketing, general and administrative 206 185 189 170 138 148 142 134 Licensing gain — — — (60 ) — — — — Operating income 348 186 59 38 28 150 153 120 Interest expense (18 ) (24 ) (25 ) (27 ) (29 ) (30 ) (31 ) (31 ) Other income (expense), net (125 ) (36 ) 3 (7 ) 4 (6 ) 1 1 Income before income taxes 205 126 37 4 3 114 123 90 Provision for (benefit from) income taxes 35 7 2 (13 ) (35 ) 12 6 8 Equity loss in investee — 1 — (1 ) — — (1 ) (1 ) Net income $ 170 $ 120 $ 35 $ 16 $ 38 $ 102 $ 116 $ 81 Earnings per share Basic $ 0.15 $ 0.11 $ 0.03 $ 0.01 $ 0.04 $ 0.10 $ 0.12 $ 0.08 Diluted $ 0.15 $ 0.11 $ 0.03 $ 0.01 $ 0.04 $ 0.09 $ 0.11 $ 0.08 Shares used in per share calculation Basic 1,140 1,097 1,084 1,044 1,002 987 972 968 Diluted 1,188 1,117 1,109 1,094 1,079 1,076 1,147 1,039 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 28, 2019 | |
Accounting Policies [Abstract] | |
Fiscal Year | Fiscal Year . The Company uses a 52 or 53 week fiscal year ending on the last Saturday in December. Fiscal 2019 , 2018 and 2017 ended December 28, 2019 , December 29, 2018 and December 30, 2017 , respectively. Fiscal 2019, 2018 and 2017 each consisted of 52 weeks. |
Principles of Consolidation | Principles of Consolidation. The consolidated financial statements include the Company’s accounts and those of its wholly-owned subsidiaries. Upon consolidation, all inter-company accounts and transactions have been eliminated. |
Reclassification | Reclassification. Certain prior period amounts have been reclassified to conform to current period presentation. |
Use of Estimates | Use of Estimates. The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of commitments and contingencies at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results are likely to differ from those estimates, and such differences may be material to the financial statements. Areas where management uses subjective judgment include, but are not limited to, revenue allowances, inventory valuation, valuation and impairment of goodwill and deferred income taxes. |
Basis of Presentation | Basis of Presentation . Effective in the first quarter of 2018, the Company adopted Accounting Standard Update (ASU) 2014-09, Revenue from Contracts with Customers (ASC 606), using the full retrospective method, which required the Company to adjust prior reporting periods presented. The 2017 amounts presented in the consolidated financial statements and notes to the consolidated financial statements were previously adjusted in the Company’s 2018 Form 10-K to reflect the retrospective application. |
Revenue Recognition | Revenue Recognition. Revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services. Sales, value-added, and other taxes collected concurrently with the provision of goods or services are excluded from revenue. Shipping and handling costs associated with product sales are included in cost of sales. Nature of products and services The Company’s microprocessors (CPUs), chipsets, graphics processing unites (GPUs), data center and professional graphics products, accelerated processing units (APUs), server and embedded processors, and System-on-Chip (SoC) products may be sold as standard non-custom products, or custom products manufactured to customers’ specifications. The Company also provides development services and licenses portions of its intellectual property (IP) portfolio. Non-custom products: The Company transfers control and recognizes revenue when non-custom products are shipped to customers, which includes original equipment manufacturers (OEM) and distributors, in accordance with the shipping terms of the sale. Certain OEMs may be entitled to rights of return and rebates under OEM agreements. The Company also sells to distributors under terms allowing the majority of distributors certain rights of return and price protection on unsold merchandise held by them. The Company estimates the amount of variable consideration under OEM and distributor arrangements and, accordingly, records a provision for product returns, allowances for price protection and rebates based on actual historical experience and any known events. The Company offers incentive programs to certain customers, including cooperative advertising, marketing promotions, volume-based incentives and special pricing arrangements. Where funds provided for such programs can be estimated, the Company recognizes a reduction to revenue at the time the related revenue is recognized; otherwise, the Company recognizes such reduction to revenue at the later of when: i) the related revenue transaction occurs; or ii) the program is offered. For transactions where the Company reimburses a customer for a portion of the customer’s cost to perform specific product advertising or marketing and promotional activities, such amounts are recognized as a reduction to revenue unless they qualify for expense recognition. Custom products: Custom products which are associated with the Company’s Enterprise, Embedded, and Semi-Custom segment (semi-custom products), sold under non-cancellable purchases orders and which have no alternative use to the Company at contract inception, are recognized as revenue, based on the value of the inventory and expected margin, over the time of production of the products by the Company. Sales of semi-custom products are not subject to a right of return. Development and intellectual property licensing agreements: From time to time, the Company may enter into arrangements with customers that combine the provision of development services and a license to the right to use the IP. These arrangements are deemed to be single or multiple performance obligations based upon the nature of the arrangements. Revenue is recognized upon the transfer of control, over time or at a point-in time, depending on the nature of the arrangements. Customers are generally required to pay for products and services within the Company’s standard contractual terms, which are typically net 30 to 60 days. The Company has determined that it does not have significant financing components in its contracts with customers. |
Inventories | Inventories. Inventories are stated at standard cost adjusted to approximate the lower of actual cost (first-in, first-out method) or estimated net realizable value. The Company adjusts inventory carrying value for estimated excess and obsolescence equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about anticipated or forecasted demand, estimates of future selling prices, competitiveness of product offerings, market and industry conditions, customer requirements and product life cycles. The Company fully reserves for inventories and non-cancellable purchase orders for inventory deemed obsolete. The Company performs periodic reviews of inventory items to identify excess inventories on hand by comparing on-hand balances to anticipated usage using recent historical activity as well as anticipated or forecasted demand. If estimates of customer demand diminish further or market conditions become less favorable than those projected by the Company, additional inventory adjustments may be required . |
Goodwill | Goodwill. The Company performs its goodwill impairment analysis 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 a more frequent basis. The analysis may include both qualitative and quantitative factors to assess the likelihood of an impairment. Qualitative factors include industry and market consideration, overall financial performance, share price trends and market capitalization and Company-specific events. The Company first analyzes qualitative factors. If the Company concludes it is more likely than not that the fair value of a reporting unit exceeds its carrying amount, the Company does not proceed to perform a quantitative impairment test. If the Company concludes it is more likely than not that the fair value of the reporting unit is less than its carrying value, a quantitative goodwill impairment test will be performed by comparing the fair value of each reporting unit to its carrying value. A quantitative impairment analysis, if necessary, considers the income approach, which requires estimates of the present value of expected future cash flows to determine a reporting unit’s fair value. Significant estimates include revenue growth rates and operating margins used to calculate projected future cash flows, discount rates, and future economic and market conditions. A goodwill impairment charge is recognized for the amount by which the reporting unit’s fair value is less than its carrying value. Any loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. |
Commitments and Contingencies | Commitments and Contingencies. From time to time the Company is a defendant or plaintiff in various legal actions that arise in the normal course of business. The Company is also subject to income tax, indirect tax or other tax claims by tax agencies in jurisdictions in which it conducts business. In addition, the Company is a party to environmental matters including local, regional, state and federal government clean-up activities at or near locations where the Company currently or has in the past conducted business. The Company is required to assess the likelihood of any adverse judgments or outcomes to these matters as well as potential ranges of reasonably possible losses. A determination of the amount of reserves required for these commitments and contingencies that would be charged to earnings, if any, includes assessing the probability of adverse outcomes and estimating the amount of potential losses. The required reserves, if any, may change due to new developments in each matter or changes in circumstances such as a change in settlement strategy. |
Cash Equivalents | Cash Equivalents. Cash equivalents consist of financial instruments that are readily convertible into cash and have original maturities of three months or less at the time of purchase. |
Accounts Receivables | Accounts Receivable. Accounts receivable are primarily comprised of trade receivables presented net of rebates, price protection and an allowance for doubtful accounts. Accounts receivable also include unbilled receivables, which primarily represent work completed on semi-custom products under non-cancellable purchase orders that have no alternative use to the Company at contract inception, for which revenue has been recognized but not yet invoiced to customers. The Company maintains an allowance for doubtful accounts based on its assessment of the collectability of amounts owed by customers. The allowance consists of known specific troubled accounts as well as an amount based on overall estimated potential uncollectible accounts receivable based on historical experience. |
Investments in Available-for-sale Debt Securities | Investments in Available-for-sale Debt Securities . The Company classifies its investments in debt securities at the date of acquisition as available-for-sale. Available-for-sale debt securities are reported at fair value with the related unrealized gains and losses included, net of tax, in accumulated other comprehensive income (loss), a component of stockholders’ equity. Realized gains and losses and declines in the value of available-for-sale debt securities determined to be other than temporary are included in other expense, net. The cost of securities sold is determined based on the specific identification method. The Company classifies investments in available-for-sale debt securities with maturities of more than three months at the time of purchase as marketable securities on its consolidated balance sheets. Classification of these securities as current is based on the Company’s intent and belief in its ability to sell these securities and use the proceeds from sale in operations within 12 |
Derivative Financial Instruments | Derivative Financial Instruments. The Company maintains a foreign currency hedging strategy which uses derivative financial instruments to mitigate the risks associated with changes in foreign currency exchange rates. This strategy takes into consideration some of the Company’s consolidated exposures. The Company does not use derivative financial instruments for trading or speculative purposes. In applying its strategy, the Company uses foreign currency forward contracts to hedge certain forecasted revenue and expenses denominated in foreign currencies. The Company designates these contracts as cash flow hedges of forecasted revenue and expenses, to the extent eligible under the accounting rules, and evaluates hedge effectiveness prospectively and retrospectively. To the extent such hedges are effective, the Company records the gain or loss on these contracts as a component of accumulated other comprehensive income (loss) and it reclassifies such gains or losses to earnings in the same period during which the hedged transaction affects earnings. Such amounts are included in the same line item in earnings as the associated forecasted transaction. The Company also uses, from time to time, foreign currency forward contracts to economically hedge recognized foreign currency exposures on the balance sheets of various subsidiaries. The Company does not designate these forward contracts as hedging instruments. Accordingly, the gain or loss associated with these contracts is immediately recorded in Other expense, net. |
Property and Equipment | Property and Equipment. Property and equipment are stated at cost. Depreciation and amortization are provided on a straight-line basis over the estimated useful lives of the assets. Estimated useful lives are as follows: equipment uses two to six years , and leasehold improvements are measured by the shorter of the remaining terms of the leases or the estimated useful economic lives of the improvements. |
Leases | Leases. The Company determines if an arrangement is a lease, or contains a lease, at the inception of the arrangement. When the Company determines the arrangement is a lease, or contains a lease, at lease inception, it then determines whether the lease is an operating lease or a finance lease. Operating and finance leases result in the Company recording a right-of-use (ROU) asset and lease liability on its balance sheet. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Operating and finance lease ROU assets and liabilities are initially recognized based on the present value of lease payments over the lease term. In determining the present value of lease payments, the Company uses the implicit interest rate if readily determinable or when the implicit interest rate is not readily determinable, the Company uses its incremental borrowing rate. The incremental borrowing rate is not a commonly quoted rate and is derived through a combination of inputs including the Company’s credit rating and the impact of full collateralization. The incremental borrowing rate is based on the Company’s collateralized borrowing capabilities over a similar term of the lease payments. The Company utilizes the consolidated group incremental borrowing rate for all leases as the Company has centralized treasury operations. The operating lease ROU asset also includes any lease payments made and excludes any lease incentives. Specific lease terms may include options to extend or terminate the lease when the Company believes it is reasonably certain that it will exercise that option. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. As allowed by the guidance, the Company has elected not to recognize ROU assets and lease liabilities that arise from short-term (12 months or less) leases for any class of underlying asset. Operating leases are included in operating lease ROU assets, other current liabilities, and long-term operating lease liabilities on the Company’s consolidated balance sheet. The Company’s finance leases are immaterial. |
Product Warranties | Product Warranties. The Company generally warrants that its products sold to its customers will conform to its approved specifications and be free from defects in material and workmanship under normal use and conditions for one year . The Company may also offer one to three -year limited warranties based on product type and negotiated warranty terms with certain customers. The Company accrues warranty costs to Cost of sales at the time of sale of warranted products. |
Foreign Currency Translation/Transactions | Foreign Currency Translation/Transactions. The functional currency of all of the Company’s foreign subsidiaries is the U.S. dollar. Assets and liabilities denominated in non-U.S. dollars have been remeasured into U.S. dollars at current exchange rates for monetary assets and liabilities and historical exchange rates for non-monetary assets and liabilities. Non-U.S. dollar denominated transactions have been remeasured at average exchange rates in effect during each period, except for those cost of sales and expense transactions related to non-monetary balance sheet amounts which have been remeasured at historical exchange rates. The gains or losses from foreign currency remeasurement are included in earnings. |
Marketing and Advertising Expenses | Marketing and Advertising Expenses. |
Stock-Based Compensation | Stock-Based Compensation . The Company estimates stock-based compensation cost for stock options at the grant date based on the option’s fair value as calculated by the lattice-binomial option-pricing model. For time-based restricted stock units, fair value is based on the closing price of the Company’s common stock on the grant date. The Company estimates the grant-date fair value of restricted stock units that involve a market condition using the Monte Carlo simulation model. The Company estimates the grant-date fair value of stock to be issued under the ESPP using the Black-Scholes model. Compensation expense is recognized over the vesting period of the applicable award using the straight-line method, except for the compensation expense related to PRSUs, which are recognized ratably for each vesting tranche from the service inception date to the end of the requisite service period. Forfeiture rates are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. |
Income Taxes | Income Taxes. The Company computes the provision for income taxes using the liability method and recognizes deferred tax assets and liabilities for temporary differences between financial statement and income tax bases of assets and liabilities, as well as for operating loss and tax credit carryforwards. The Company measures deferred tax assets and liabilities using tax rates applicable to taxable income in effect for the years in which those tax assets are expected to be realized or settled and provides a valuation allowance against deferred tax assets when it cannot conclude that it is more likely than not that some or all deferred tax assets will be realized. In addition, the Company recognizes tax benefits from uncertain tax positions only if it expects that its tax positions are more likely than not that they will be sustained, based on the technical merits of the positions, on examination by the jurisdictional tax authority. The Company recognizes any accrued interest and penalties to unrecognized tax benefits as interest expense and income tax expense, respectively. |
Recently Adopted and Issued Accounting Standards | Recently Adopted Accounting Standards Leases. In February 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-02, Leases (Topic 842) , to increase transparency and comparability among organizations for lease recognition and disclosure. This standard requires lessees to recognize lease assets and lease liabilities on the balance sheet, while recognizing expenses on the income statements in a manner similar to legacy guidance. The Company adopted this standard in the first quarter of 2019, using the optional modified retrospective approach, which did not require an adjustment to comparative period financial statements, and recorded $228 million of right-of-use assets and $261 million of lease liabilities primarily related to office buildings on its consolidated balance sheet as of December 30, 2018. The Company’s accounting for capital leases, now referred to as finance leases, remains unchanged. The adoption of the new standard had no impact on the Company’s consolidated statement of operations or on net cash provided by or used in operating, financing, or investing activities on its consolidated statement of cash flows. Upon adoption of ASU 2016-02, the Company elected a transition practical expedient under the new accounting standard allowing it not to separate lease and non-lease components and instead to account for each separate lease component and non-lease component as a single lease component. The Company implemented internal controls and key system functionality to enable the preparation of financial information on adoption. Recently Issued Accounting Standards Financial Instruments. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments . This standard changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, using a modified retrospective adoption method. The Company will adopt this standard in the first quarter of 2020 and the adoption will not have a material impact on its consolidated financial statements. Income Taxes. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . This standard simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in Topic 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The new guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill and allocating consolidated income taxes to separate financial statements of entities not subject to income tax. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, with early adoption permitted. Upon adoption, the Company must apply certain aspects of this standard retrospectively for all periods presented while other aspects are applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. The Company is currently evaluating the impact of this new standard on its consolidated financial statements. Although there are several other new accounting pronouncements issued by the FASB, the Company does not believe any of these accounting pronouncements had or will have a material impact on its consolidated financial statements. |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Inventories, net | December 28, December 29, (In millions) Raw materials $ 94 $ 134 Work in process 691 354 Finished goods 197 357 Total inventories, net $ 982 $ 845 |
Property and Equipment, net | December 28, December 29, (In millions) Leasehold improvements $ 203 $ 179 Equipment 951 798 Construction in progress 114 78 Property and equipment, gross 1,268 1,055 Accumulated depreciation and amortization (768 ) (707 ) Total property and equipment, net $ 500 $ 348 |
Other Assets | December 28, December 29, (In millions) Software and technology licenses, net $ 210 $ 226 Other 169 95 Total other assets $ 379 $ 321 |
Accrued Liabilities | December 28, December 29, (In millions) Accrued compensation and benefits $ 285 $ 236 Marketing programs and advertising expenses 454 275 Other accrued and current liabilities 345 272 Total accrued liabilities $ 1,084 $ 783 |
Other Current Liabilities | December 28, December 29, (In millions) Unearned revenue $ 2 $ 11 Operating lease liabilities 43 — Other 29 13 Total other current liabilities $ 74 $ 24 |
Changes in unearned revenue | Changes in unearned revenue were as follows: December 28, December 29, (In millions) Beginning balance $ 11 $ 85 Unearned revenue 43 132 Revenue recognized during the period (52 ) (186 ) Other — (20 ) Ending balance $ 2 $ 11 |
Debt, Secured Revolving Facil_2
Debt, Secured Revolving Facility and Secured Revolving Line of Credit (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt and Other Obligations | The Company’s total debt as of December 28, 2019 and December 29, 2018 consisted of: December 28, December 29, (In millions) 6.75% Notes $ — $ 66 7.50% Notes 312 337 7.00% Notes — 250 2.125% Notes 251 805 Secured Revolving Line of Credit — 70 Total debt (principal amount) $ 563 $ 1,528 Unamortized debt discount associated with 2.125% Notes (73 ) (262 ) Unamortized debt issuance costs (4 ) (16 ) Total debt (net) $ 486 1,250 Less: current portion — (136 ) Total debt, less current portion $ 486 $ 1,114 |
Convertible Debt | The following table sets forth total interest expense recognized related to the 2.125% Notes for the year ended December 28, 2019 : December 28, December 29, (In millions) Contractual interest expense $ 15 $ 17 Interest cost related to amortization of debt issuance costs $ 1 $ 1 Interest cost related to amortization of the debt discount $ 22 $ 24 The 2.125% Notes consisted of the following: December 28, December 29, (In millions) Principal $ 251 $ 805 Unamortized debt discount (1) (73 ) (262 ) Unamortized debt issuance costs (3 ) (11 ) Net carrying amount $ 175 $ 532 Carrying amount of the equity component, net (2) $ 95 $ 305 (1) Included in the consolidated balance sheets within Long-term debt, net and amortized over the remaining life of the notes using the effective interest rate method. (2) Included in the consolidated balance sheets within additional paid-in capital, net of $3 million in equity issuance costs. |
Schedule of Future Payments on Debt | As of December 28, 2019 , the Company’s future debt payment obligations for the respective fiscal years were as follows: Term Debt (Principal only) (In millions) 2020 $ — 2021 — 2022 312 2023 — 2024 — 2025 and thereafter 251 Total $ 563 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Cash, Cash Equivalents and Marketable Securities | Cash and financial instruments measured and recorded at fair value on a recurring basis, which approximates amortized cost, as of December 28, 2019 and December 29, 2018 are summarized below: Total Fair Cash and (In millions) December 28, 2019 Cash $ 1,465 $ 1,465 $ — Level 1 (1) Government money market funds $ 1 $ 1 $ — Total level 1 $ 1 $ 1 $ — Level 2 (2) Commercial paper $ 37 $ — $ 37 Total level 2 $ 37 $ — $ 37 Total $ 1,503 $ 1,466 $ 37 Total Fair Cash and (In millions) December 29, 2018 Cash $ 315 $ 315 $ — Level 1 (1) Government money market funds $ 275 $ 275 $ — Total level 1 $ 275 $ 275 $ — Level 2 (2) Commercial paper $ 566 $ 488 $ 78 Total level 2 $ 566 $ 488 $ 78 Total $ 1,156 $ 1,078 $ 78 (1) Level 1 fair value estimates are based on quoted prices for identical instruments in active markets. (2) Level 2 fair value estimates are based on quoted prices for identical or comparable instruments in markets that are not active or comparable instruments in active markets. |
Financial Instruments Not Recorded at Fair Value on a Recurring Basis | The Company carries its certain 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: December 28, 2019 December 29, 2018 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value (In millions) Short-term debt $ — $ — $ 136 $ 136 Long-term debt, net (1) $ 486 $ 1,823 $ 1,114 $ 2,428 (1) Carrying amounts of long-term debt are net of unamortized debt issuance costs of $4 million and $16 million as of December 28, 2019 and December 29, 2018 , respectively, and net of $73 million and $262 million unamortized debt discount associated with the 2.125% Notes as of December 28, 2019 and December 29, 2018 , respectively. The carrying amounts above do not include the equity component related to the conversion feature of the 2.125% Notes of $95 million and $305 million as of December 28, 2019 and December 29, 2018 , respectively. |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Operations | The following table shows the amount of losses included in accumulated other comprehensive income (loss) (AOCI), the amount of losses 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 losses included in other expense, net, related to contracts not designated as hedging instruments which was allocated in the consolidated statements of operations: Year Ended December 28, 2019 December 29, 2018 Cost of sales Research and development Marketing, general and administrative Other expense, net Research and development Marketing, general and administrative Other expense, net (In millions) Contracts designated as cash flow hedging instruments Losses reclassified from AOCI into earnings $ (1 ) $ (4 ) $ (1 ) $ — $ (4 ) $ (1 ) $ — Contracts not designated as hedging instruments Losses recognized in earnings — — — (1 ) — — (3 ) Total losses $ (1 ) $ (4 ) $ (1 ) $ (1 ) $ (4 ) $ (1 ) $ (3 ) |
Schedule of Fair Value Amounts of Foreign Currency Forward Contracts in Balance Sheet | The following table shows the fair value amounts of the Company’s foreign currency derivative contracts depending on whether the foreign currency forward contracts were a gain or loss position. These amounts were recorded in the Company’s consolidated balance sheets in either Other current assets or Other current liabilities. December 28, December 29, (In millions) Foreign Currency Forward Contracts - gains (losses) Contracts designated as cash flow hedging instruments - gains $ 2 $ 1 Contracts designated as cash flow hedging instruments - losses $ (2 ) $ (8 ) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The table below summarizes the changes in accumulated other comprehensive income (loss) for the years ended December 28, 2019 and December 29, 2018 : Year Ended December 28, 2019 December 29, 2018 Unrealized gains (losses) on cash flow hedges Unrealized gains (losses) on cash flow hedges Beginning balance $ (8 ) $ 6 Unrealized gain (losses) arising during the period, net of tax of zero 2 (19 ) Reclassification adjustment for gains realized and included in net income, net of tax of zero 6 5 Total other comprehensive income (loss) 8 (14 ) Ending balance $ — $ (8 ) |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Earnings Per Share [Abstract] | |
Components of basic and diluted income (loss) per share | The following table sets forth the components of basic and diluted earnings (loss) per share: 2019 2018 2017 (In millions, except per share amounts) Numerator-Net income (loss): Numerator for basic and diluted earnings per share 341 337 (33 ) Denominator-Weighted average shares: Denominator for basic earnings per share 1,091 982 952 Effect of potentially dilutive shares: Employee equity incentive plans and warrants 29 82 — Denominator for diluted earnings per share 1,120 1,064 952 Earnings (loss) per share: Basic $ 0.31 $ 0.34 $ (0.03 ) Diluted $ 0.30 $ 0.32 $ (0.03 ) |
Common Stock and Stock-Based _2
Common Stock and Stock-Based Incentive Compensation Plans (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Common Shares Outstanding | Shares of common stock outstanding were as follows: Year Ended December 28, December 29, December 30, (In millions) Number of shares Balance, beginning of period 1,005 967 935 Common stock issued under employee equity 20 31 32 Issuance of common stock upon warrant exercise 75 — — Issuance of common stock to partially settle convertible debt 69 — — Issuance of treasury stock to partially settle debt 1 7 — Balance, end of period 1,170 1,005 967 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | Stock-based compensation expense was allocated in the consolidated statements of operations as follows: 2019 2018 2017 (In millions) Cost of sales $ 6 $ 4 $ 2 Research and development 129 91 57 Marketing, general, and administrative 62 42 38 Total stock-based compensation expense, net of tax of $0 $ 197 $ 137 $ 97 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The weighted-average estimated fair value of employee stock options granted for the years ended December 28, 2019 , December 29, 2018 and December 30, 2017 was $13.31 , $7.62 and $5.46 per share, respectively, using the following assumptions: 2019 2018 2017 Expected volatility 52.60% - 56.51% 51.51% - 60.46% 57.26 % Risk-free interest rate 1.53% - 2.51% 2.20% - 2.83% 1.68 % Expected dividends — % — % — % Expected life (in years) 3.94 - 3.95 3.92 - 3.94 3.92 2019 , 2018 and 2017 were $50.00 , $21.67 and $17.18 , respectively, using the following assumptions: 2019 2018 2017 Expected volatility 60.54% - 62.52% 63.77% - 67.97% 64.39 % Risk-free interest rate 1.56% - 2.49% 2.06% - 2.82% 1.50 % Expected dividends — % — % — % Expected term (in years) 2.48 - 5.00 2.48 - 3.00 3.00 |
Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes stock option activity and related information: Outstanding Number Weighted- Average Exercise Price Aggregate Intrinsic Value Weighted-Average Remaining Contractual Life (In millions, except share price) Balance as of December 29, 2018 13 $ 5.33 Granted 1 $ 32.86 Canceled (1 ) $ 17.52 Exercised (3 ) $ 3.74 Balance as of December 28, 2019 10 $ 7.56 $ 226 3.20 Exercisable December 28, 2019 9 $ 4.56 $ 215 2.72 |
Schedule of Share-based Compensation, Restricted Stock Units, Activity | Number of Shares Weighted- Average Fair Value Aggregate Intrinsic Value Weighted-Average Remaining Contractual Life (in years) (In millions except share price) Unvested shares as of December 29, 2018 24 $ 12.86 Granted 8 $ 32.52 Forfeited (2 ) $ 16.49 Vested (12 ) $ 10.39 Unvested shares as of December 28, 2019 18 $ 22.93 $ 503 1.19 |
Schedule of Nonvested Performance-based Units Activity | The following table summarizes PRSU activity and related information: Number Weighted- Aggregate Intrinsic Value Weighted-Average Remaining Contractual Life (in years) (In millions except share price) Unvested shares as of December 29, 2018 2 $ 14.58 Granted 2 $ 50.00 Forfeited — $ 22.39 Vested (1 ) $ 3.60 Unvested shares as of December 28, 2019 3 $ 36.13 $ 90 2.56 |
Schedule of ESPP | ESPP. The weighted-average grant date fair value for the ESPP during 2019 , 2018 and 2017 was $9.96 , $4.71 and $3.46 per share, respectively, using the following assumptions: 2019 2018 2017 Expected volatility 48.95% - 67.02% 45.88% - 66.66% 56.07 % Risk-free interest rate 1.58% - 2.46% 2.05% - 2.52% 1.36 % Expected dividends — % — % — % Expected term (in years) 0.50 0.50 0.49 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Income Tax Disclosure [Abstract] | ||
Schedule of Loss before Income Tax | Income (loss) before income taxes consists of the following: 2019 2018 2017 (In millions) U.S. $ 334 $ 114 $ 53 Non-U.S. 38 214 (68 ) Total pre-tax income (loss) including equity loss in investee $ 372 $ 328 $ (15 ) | |
Provision (Benefit) for Income Taxes | The provision for (benefit from) income taxes consists of: 2019 2018 2017 (In millions) Current: U.S. Federal $ (13 ) $ 12 $ (3 ) U.S. State and Local 1 — — Non-U.S. 50 (17 ) 37 Total 38 (5 ) 34 Deferred: U.S. Federal — — (15 ) Non-U.S. (7 ) (4 ) (1 ) Total (7 ) (4 ) (16 ) Provision for (benefit from) income taxes $ 31 $ (9 ) $ 18 | |
Schedule of Effective Income Tax Rate Reconciliation | The table below displays the reconciliation between statutory federal income taxes and the total provision for (benefit from) income taxes. 2019 2018 2017 (In millions) Statutory federal income tax expense (benefit) at 21%, 21% and 35% rate $ 78 $ 69 $ 22 State taxes 1 1 1 Foreign withholding taxes (refund) 22 (29 ) 27 Foreign rate detriment 2 2 — Valuation allowance change (59 ) (64 ) (12 ) Credit monetization — (1 ) (20 ) Tax Reform Act (13 ) 13 — Provision for (benefit from) income taxes $ 31 $ (9 ) $ 18 | |
Schedule of Deferred Tax Assets and Liabilities | Deferred income taxes reflect the net tax effects of tax carryovers and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the balances for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities as of December 28, 2019 and December 29, 2018 are as follows: December 28, December 29, 2018 (In millions) Deferred tax assets: Net operating loss carryovers $ 1,455 $ 1,533 Accruals and reserves not currently deductible 245 123 Acquired intangibles and goodwill 45 101 Federal and state tax credit carryovers 617 527 Foreign research and development ITC credits 429 370 Other 159 104 Total deferred tax assets 2,950 2,758 Less: valuation allowance (2,743 ) (2,580 ) Total deferred tax assets, net of valuation allowance 207 178 Deferred tax liabilities: Discount of convertible notes (22 ) (54 ) Undistributed foreign earnings (110 ) (105 ) Other (64 ) (15 ) Total deferred tax liabilities (196 ) (174 ) Net deferred tax assets $ 11 $ 4 The breakdown between deferred tax assets and deferred tax liabilities as of December 28, 2019 and December 29, 2018 is as follows: December 28, December 29, 2018 (In millions) Deferred tax assets $ 22 $ 15 Deferred tax liabilities (11 ) (11 ) Net deferred tax assets $ 11 $ 4 | |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the Company's gross unrecognized tax benefits is as follows: 2019 2018 2017 (In millions) Balance at beginning of year $ 49 $ 49 $ 42 Increases for tax positions taken in prior years 5 1 7 Decreases for tax positions taken in prior years — (1 ) (2 ) Increases for tax positions taken in the current year 15 3 3 Decreases for settlements with taxing authorities (3 ) (2 ) — Decreases for lapsing of the statute of limitations (1 ) (1 ) (1 ) Balance at end of year $ 65 $ 49 $ 49 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following table provides a summary of net revenue and operating income (loss) by segment for 2019 , 2018 and 2017 . 2019 2018 2017 (In millions) Net revenue: Computing and Graphics $ 4,709 $ 4,125 $ 2,977 Enterprise, Embedded and Semi-Custom 2,022 2,350 2,276 Total net revenue $ 6,731 $ 6,475 $ 5,253 Operating income (loss): Computing and Graphics $ 577 $ 470 $ 92 Enterprise, Embedded and Semi-Custom 263 163 132 All Other (209 ) (182 ) (97 ) Total operating income $ 631 $ 451 $ 127 The following table provides major items included in All Other category: 2019 2018 2017 (In millions) Operating loss: Stock-based compensation expense $ (197 ) $ (137 ) $ (97 ) Impairment of technology licenses — (45 ) — Loss contingency on legal matter (12 ) — — Total operating loss $ (209 ) $ (182 ) $ (97 ) |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area | The following table summarizes sales to external customers by geographic regions based on billing location of the customer: 2019 2018 2017 (In millions) United States $ 1,764 $ 1,327 $ 1,360 China (including Hong Kong) 1,736 1,319 974 Japan 840 1,225 1,215 Europe 762 470 263 Taiwan 719 1,197 738 Singapore 597 728 550 Other countries 313 209 153 Total sales to external customers $ 6,731 $ 6,475 $ 5,253 |
Schedule of Property and Equipment, Net by geographic areas | The following table summarizes Property and equipment, net by geographic areas: 2019 2018 (In millions) United States $ 300 $ 232 Canada 99 51 China 36 17 Singapore 33 29 Other countries 32 19 Total property and equipment, net $ 500 $ 348 |
Schedule of Revenue by Major Customers by Reporting Segments | The following table summarizes sales to major customers that accounted for at least 10% of the Company’s consolidated net revenue for the respective years: 2019 2018 2017 Customer A 12 % 19 % 23 % Customer B * 11 % 15 % * Less than 10% |
Other Expense, Net (Tables)
Other Expense, Net (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Income Statement Related Disclosures [Abstract] | |
Schedule of Other Expense, Net | The following table summarizes the components of Other expense, net: 2019 2018 2017 (In millions) Interest income $ 15 $ 18 $ 6 Gain on sale of 85% ATMP JV — — 3 Loss on debt redemption, repurchase and conversion (176 ) (12 ) (12 ) Other (4 ) (6 ) (6 ) Other expense, net $ (165 ) $ — $ (9 ) |
Commitments and Guarantees (Tab
Commitments and Guarantees (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Leases, Supplemental Cash Flows | Supplemental information related to leases is as follows: December 28, Weighted-average remaining lease term – operating leases 6.26 years Weighted-average discount rate – operating leases 5.55 % |
Operating Lease, Liability, Maturity | Future minimum lease payments under non-cancellable operating lease liabilities as of December 28, 2019 are as follows: Year (In millions) 2020 $ 54 2021 48 2022 44 2023 37 2024 33 2025 and thereafter 71 Total minimum lease payments 287 Less: interest (45 ) Present value of net minimum lease payments 242 Less: current portion (43 ) Total long-term operating lease liabilities $ 199 |
Schedule of Future Unconditional Purchase Obligations | Total future unconditional purchase obligations as of December 28, 2019 were as follows: Year (In millions) 2020 $ 1,731 2021 642 2022 58 2023 5 2024 2 2025 and thereafter 7 Total unconditional purchase commitments $ 2,445 |
Product Warranty Disclosure | Changes in the Company’s estimated liability for product warranty during the years ended December 28, 2019 and December 29, 2018 are as follows: December 28, December 29, (In millions) Beginning balance $ 13 $ 12 New warranties issued during the period 31 27 Settlements during the period (29 ) (28 ) Changes in liability for pre-existing warranties during the period, including expirations — 2 Ending balance $ 15 $ 13 |
Supplementary Financial Infor_2
Supplementary Financial Information (unaudited) (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Quarterly Financial Data [Abstract] | |
Supplementary Financial Information | (In millions, except per share amounts) 2019 2018 Dec. 28 Sep. 28 June 29 Mar. 30 Dec. 29 Sep. 29 June 30 Mar. 31 Net revenue $ 2,127 $ 1,801 $ 1,531 $ 1,272 $ 1,419 $ 1,653 $ 1,756 $ 1,647 Cost of sales 1,178 1,024 910 751 882 992 1,104 1,050 Gross margin 949 777 621 521 537 661 652 597 Research and development 395 406 373 373 371 363 357 343 Marketing, general and administrative 206 185 189 170 138 148 142 134 Licensing gain — — — (60 ) — — — — Operating income 348 186 59 38 28 150 153 120 Interest expense (18 ) (24 ) (25 ) (27 ) (29 ) (30 ) (31 ) (31 ) Other income (expense), net (125 ) (36 ) 3 (7 ) 4 (6 ) 1 1 Income before income taxes 205 126 37 4 3 114 123 90 Provision for (benefit from) income taxes 35 7 2 (13 ) (35 ) 12 6 8 Equity loss in investee — 1 — (1 ) — — (1 ) (1 ) Net income $ 170 $ 120 $ 35 $ 16 $ 38 $ 102 $ 116 $ 81 Earnings per share Basic $ 0.15 $ 0.11 $ 0.03 $ 0.01 $ 0.04 $ 0.10 $ 0.12 $ 0.08 Diluted $ 0.15 $ 0.11 $ 0.03 $ 0.01 $ 0.04 $ 0.09 $ 0.11 $ 0.08 Shares used in per share calculation Basic 1,140 1,097 1,084 1,044 1,002 987 972 968 Diluted 1,188 1,117 1,109 1,094 1,079 1,076 1,147 1,039 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 30, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Product warranty period | 1 year | |||
Marketing, communications and advertising expenses | $ 217 | $ 176 | $ 156 | |
Operating lease right-of-use assets | 205 | $ 228 | ||
Operating lease, liability | $ 242 | $ 261 | ||
Minimum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Customer payment due, standard contractual term | 30 days | |||
Limited product warranty period | 1 year | |||
Maximum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Customer payment due, standard contractual term | 60 days | |||
Limited product warranty period | 3 years | |||
Equipment | Minimum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Property, plant and equipment, useful life | 2 years | |||
Equipment | Maximum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Property, plant and equipment, useful life | 6 years |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Accounts Receivable | |||
Unbilled accounts receivables | $ 197 | $ 308 | |
Inventories, Net | |||
Raw materials | 94 | 134 | |
Work in process | 691 | 354 | |
Finished goods | 197 | 357 | |
Total inventories, net | 982 | 845 | |
Property and Equipment, net | |||
Leasehold improvements | 203 | 179 | |
Equipment | 951 | 798 | |
Construction in progress | 114 | 78 | |
Property and equipment, gross | 1,268 | 1,055 | |
Accumulated depreciation and amortization | (768) | (707) | |
Total property and equipment, net | 500 | 348 | |
Depreciation | 142 | 94 | $ 77 |
Other assets | |||
Software and technology licenses, net | 210 | 226 | |
Other | 169 | 95 | |
Total other assets | 379 | 321 | |
Impairment of technology licenses | 0 | 45 | 0 |
Accrued liabilities | |||
Accrued compensation and benefits | 285 | 236 | |
Marketing programs and advertising expenses | 454 | 275 | |
Other accrued and current liabilities | 345 | 272 | |
Total accrued liabilities | 1,084 | 783 | |
Other current liabilities | |||
Unearned revenue | 2 | 11 | |
Operating lease liabilities | 43 | 0 | |
Other | 29 | 13 | |
Total other current liabilities | 74 | 24 | |
Changes in unearned revenue | |||
Beginning balance | 11 | 85 | |
Unearned revenue | 43 | 132 | |
Revenue recognized during the period | (52) | (186) | |
Other | 0 | (20) | |
Ending balance | $ 2 | $ 11 | $ 85 |
Supplemental Balance Sheet In_4
Supplemental Balance Sheet Information Remaining Performance Obligations (Details) $ in Millions | Dec. 28, 2019USD ($) |
Balance Sheet Related Disclosures [Abstract] | |
Revenue allocated to remaining performance obligations that are unsatisfied or partially unsatisfied | $ 456 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-12-29 | |
Balance Sheet Related Disclosures [Abstract] | |
Revenue allocated to remaining performance obligations that are unsatisfied or partially unsatisfied | $ 188 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction, period | 12 months |
Equity Joint Ventures (Details)
Equity Joint Ventures (Details) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 28, 2019USD ($)joint_venture | Sep. 28, 2019USD ($) | Jun. 29, 2019USD ($) | Mar. 30, 2019USD ($) | Dec. 29, 2018USD ($) | Sep. 29, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 28, 2019USD ($)joint_venture | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | Feb. 29, 2016USD ($)joint_venture | |
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Payables to related parties | $ 213,000,000 | $ 207,000,000 | $ 213,000,000 | $ 207,000,000 | ||||||||
Equity loss in investee | 0 | $ 1,000,000 | $ 0 | $ (1,000,000) | 0 | $ 0 | $ (1,000,000) | $ (1,000,000) | 0 | (2,000,000) | $ (7,000,000) | |
Equity method investment | 58,000,000 | 58,000,000 | 58,000,000 | 58,000,000 | ||||||||
Operating income related to licensed IP | 0 | 0 | 0 | 60,000,000 | 0 | 0 | 0 | 0 | 60,000,000 | 0 | 52,000,000 | |
Net revenue | 2,127,000,000 | $ 1,801,000,000 | $ 1,531,000,000 | $ 1,272,000,000 | 1,419,000,000 | $ 1,653,000,000 | $ 1,756,000,000 | $ 1,647,000,000 | 6,731,000,000 | 6,475,000,000 | 5,253,000,000 | |
ATMP JV | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Equity method investment | 58,000,000 | 58,000,000 | 58,000,000 | 58,000,000 | ||||||||
THATIC JV | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Prepayment and other receivables - related parties | 13,000,000 | 18,000,000 | 13,000,000 | 18,000,000 | ||||||||
Equity method investment | $ 0 | 0 | ||||||||||
Number of legal entities | joint_venture | 2 | |||||||||||
Licensing Gain | THATIC JV | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Estimated license fees earned over time | $ 293,000,000 | |||||||||||
Operating income related to licensed IP | $ 60,000,000 | 52,000,000 | ||||||||||
Joint Venture | ATMP JV | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Equity interest in each JV | 15.00% | 15.00% | ||||||||||
Number of joint ventures | joint_venture | 2 | 2 | ||||||||||
Purchases from related party | $ 660,000,000 | 574,000,000 | ||||||||||
Payables to related parties | $ 213,000,000 | 207,000,000 | 213,000,000 | 207,000,000 | ||||||||
Revenue from related parties | 56,000,000 | 62,000,000 | ||||||||||
Prepayment and other receivables - related parties | $ 7,000,000 | $ 16,000,000 | 7,000,000 | 16,000,000 | ||||||||
Equity loss in investee | $ 0 | (2,000,000) | $ (7,000,000) | |||||||||
License and Service | Licensing Revenue | THATIC JV | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Net revenue | $ 86,000,000 |
GLOBALFOUNDRIES (Details)
GLOBALFOUNDRIES (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 13, 2019 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Aug. 30, 2016 |
Related Party Transaction [Line Items] | |||||
Proceeds from warrant exercised by related party | $ 449 | $ 0 | $ 0 | ||
WCH | Affiliated Entity | WCH Warrant | |||||
Related Party Transaction [Line Items] | |||||
Total shares called by warrants (shares) | 75,000,000 | ||||
Warrant exercise price (USD per share) | $ 5.98 | $ 5.98 | |||
Warrants to purchase common stock, shares (in shares) | 75,000,000 | ||||
Proceeds from warrant exercised by related party | $ 449 | ||||
Globalfoundries | |||||
Related Party Transaction [Line Items] | |||||
Purchases from related party | $ 500 | 1,600 | $ 1,100 | ||
Prepayment and other receivables - related parties | 18 | ||||
Payable to GLOBALFOUNDRIES | $ 326 |
Goodwill (Details)
Goodwill (Details) - USD ($) | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Goodwill [Line Items] | ||
Goodwill | $ 289,000,000 | $ 289,000,000 |
Goodwill, impairment loss | 0 | 0 |
Enterprise, Embedded and Semi-Custom | ||
Goodwill [Line Items] | ||
Goodwill | $ 289,000,000 | $ 289,000,000 |
Debt, Secured Revolving Facil_3
Debt, Secured Revolving Facility and Secured Revolving Line of Credit (Details) (Summary of Debt and Other Obligations) - USD ($) $ in Millions | Dec. 28, 2019 | Sep. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Sep. 14, 2016 | Dec. 27, 2014 | Jun. 16, 2014 | Feb. 26, 2014 | Aug. 15, 2012 |
Debt Instrument [Line Items] | ||||||||||
Long-term debt, gross | $ 563 | $ 1,528 | ||||||||
Unamortized debt discount associated with 2.125% Notes | (73) | (262) | ||||||||
Unamortized debt issuance costs | (4) | (16) | ||||||||
Total debt (net) | 486 | 1,250 | ||||||||
Less: current portion | 0 | (136) | ||||||||
Total debt, less current portion | 486 | 1,114 | ||||||||
Secured Revolving Line of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt, gross | $ 0 | $ 70 | ||||||||
6.75% Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate, stated percentage | 6.75% | 6.75% | 6.75% | 6.75% | 6.75% | |||||
7.50% Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate, stated percentage | 7.50% | 7.50% | 7.50% | 7.50% | 7.50% | 7.50% | ||||
Long-term debt, gross | $ 312 | $ 337 | ||||||||
7.00% Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate, stated percentage | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | |||||
Long-term debt, gross | $ 0 | $ 250 | ||||||||
2.125% Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate, stated percentage | 2.125% | 2.125% | 2.125% | |||||||
Long-term debt, gross | $ 251 | $ 805 |
Debt, Secured Revolving Facil_4
Debt, Secured Revolving Facility and Secured Revolving Line of Credit (Details) (Narrative) $ / shares in Units, shares in Millions | Jun. 07, 2019USD ($) | Sep. 14, 2016USD ($)day$ / shares | Aug. 15, 2012USD ($) | Dec. 28, 2019USD ($)$ / sharesshares | Dec. 29, 2018USD ($)$ / shares | Dec. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 27, 2014USD ($) | Sep. 28, 2019$ / shares | Jun. 16, 2014USD ($) | Feb. 26, 2014USD ($) |
Debt Instrument [Line Items] | |||||||||||
Conversion price (USD per share) | $ / shares | $ 8 | ||||||||||
Principal | $ 563,000,000 | $ 1,528,000,000 | |||||||||
Stock issued in settlement | 7,000,000 | $ 141,000,000 | $ 38,000,000 | ||||||||
Loss on the extinguishment of debt | $ 176,000,000 | ||||||||||
6.75% Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate, stated percentage | 6.75% | 6.75% | 6.75% | 6.75% | 6.75% | ||||||
Principal | $ 600,000,000 | ||||||||||
Repurchase partial tender offer | $ 442,000,000 | ||||||||||
Repayments of debt | $ 26,000,000 | ||||||||||
Stock issued in settlement | $ 5,000,000 | ||||||||||
2.125% Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate, stated percentage | 2.125% | 2.125% | 2.125% | ||||||||
Principal | $ 805,000,000 | ||||||||||
Conversion price (USD per share) | $ / shares | $ 8 | ||||||||||
Principal | $ 251,000,000 | $ 805,000,000 | |||||||||
Remaining term | 6 years 9 months | ||||||||||
Debt instrument, convertible, stock price trigger (USD per share) | $ / shares | $ 46.18 | ||||||||||
If-converted value in excess of principal | $ 1,200,000,000 | ||||||||||
Effective interest rate | 8.00% | ||||||||||
7.50% Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate, stated percentage | 7.50% | 7.50% | 7.50% | 7.50% | 7.50% | 7.50% | |||||
Principal | $ 500,000,000 | ||||||||||
Principal | $ 312,000,000 | $ 337,000,000 | |||||||||
Extinguishment of debt | $ 25,000,000 | $ 10,000,000 | $ 3,000,000 | $ 125,000,000 | $ 25,000,000 | ||||||
Repurchase partial tender offer | $ 135,000,000 | ||||||||||
Repayments of debt, including accrued interest | $ 24,000,000 | ||||||||||
Weighted average cost (USD per share) | $ / shares | $ 9.01 | ||||||||||
7.00% Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate, stated percentage | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | ||||||
Principal | $ 500,000,000 | ||||||||||
Principal | $ 0 | $ 250,000,000 | |||||||||
Extinguishment of debt | $ 250,000,000 | 61,000,000 | $ 105,000,000 | $ 84,000,000 | |||||||
Repayments of debt | 26,000,000 | 84,000,000 | 77,000,000 | ||||||||
Stock issued in settlement | $ 35,000,000 | 26,000,000 | 8,000,000 | ||||||||
Weighted average cost (USD per share) | $ / shares | $ 9.42 | ||||||||||
Debt Instrument, circumstance 1 | 7.50% Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Redemption price, percentage | 100.00% | ||||||||||
Debt Instrument, circumstance 2 | 7.50% Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Redemption price, percentage | 101.00% | ||||||||||
Secured Revolving Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, covenant, maximum debt to EBITDA ratio | 4 | ||||||||||
Debt instrument, covenant, minimum EBITDA to cash interest expense ratio | 3 | ||||||||||
Letters of credit, outstanding balance | $ 14,000,000 | ||||||||||
Repayments of lines of credit | $ 70,000,000 | ||||||||||
6.75% Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal | 0 | $ 66,000,000 | |||||||||
Extinguishment of debt | $ 66,000,000 | 101,000,000 | $ 30,000,000 | $ 404,000,000 | |||||||
Repayments of debt | 14,000,000 | ||||||||||
Stock issued in settlement | $ 87,000,000 | ||||||||||
Weighted average cost (USD per share) | $ / shares | $ 9.04 | ||||||||||
2.125% Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate, stated percentage | 2.125% | ||||||||||
Principal | $ 251,000,000 | $ 805,000,000 | |||||||||
Conversion price (USD per share) | $ / shares | $ 8 | ||||||||||
Debt conversion, converted instrument, amount | $ 554,000,000 | ||||||||||
Issuance of common stock to partially settle convertible debt | shares | 69 | ||||||||||
Repayments of convertible debt | $ 56,000,000 | ||||||||||
Principal | 251,000,000 | ||||||||||
2.125% Notes | Convertible Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Payments of stock issuance cost | 3,000,000 | ||||||||||
2.125% Notes | Debt Instrument, circumstance 1 | Convertible Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Convertible, threshold trading days | day | 20 | ||||||||||
Threshold consecutive trading days | day | 30 | ||||||||||
Threshold percentage of stock price trigger | 130.00% | ||||||||||
2.125% Notes | Debt Instrument, circumstance 2 | Convertible Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Threshold consecutive trading days | day | 10 | ||||||||||
Threshold percentage of stock price trigger | 98.00% | ||||||||||
Conversion period after threshold period days | day | 5 | ||||||||||
Threshold principal amount | $ 1,000 | ||||||||||
Swingline Subfacility | Secured Revolving Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Secured revolving line of credit, maximum borrowing capacity | 50,000,000 | ||||||||||
Secured Revolving Line of Credit | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal | 0 | $ 70,000,000 | |||||||||
Secured Revolving Line of Credit | Secured Revolving Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Secured revolving line of credit, maximum borrowing capacity | 500,000,000 | ||||||||||
Debt instrument, available borrowings reduction, asset sales threshold | 250,000,000 | ||||||||||
Long-term line of credit | $ 0 | ||||||||||
Letter of Credit | Secured Revolving Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Secured revolving line of credit, maximum borrowing capacity | $ 75,000,000 | ||||||||||
Minimum | Secured Revolving Credit Facility | LIBOR | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 1.00% | ||||||||||
Minimum | Secured Revolving Credit Facility | Base Rate | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 0.00% | ||||||||||
Maximum | Secured Revolving Credit Facility | LIBOR | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 1.75% | ||||||||||
Maximum | Secured Revolving Credit Facility | Base Rate | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 0.75% |
Debt, Secured Revolving Facil_5
Debt, Secured Revolving Facility and Secured Revolving Line of Credit (Details) (Convertible Debt) - USD ($) | Dec. 28, 2019 | Dec. 29, 2018 |
Debt Instrument [Line Items] | ||
Unamortized debt discount | $ (73,000,000) | $ (262,000,000) |
Total debt (net) | 486,000,000 | 1,250,000,000 |
2.125% Notes | ||
Debt Instrument [Line Items] | ||
Principal | 251,000,000 | 805,000,000 |
Unamortized debt discount | (73,000,000) | (262,000,000) |
Unamortized debt issuance costs | (3,000,000) | (11,000,000) |
Total debt (net) | 175,000,000 | 532,000,000 |
Carrying amount of the equity component, net | $ 95,000,000 | $ 305,000,000 |
Debt, Secured Revolving Facil_6
Debt, Secured Revolving Facility and Secured Revolving Line of Credit (Details) (Interest Expense Recognized) - 2.125% Notes - USD ($) $ in Millions | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Debt Instrument [Line Items] | ||
Contractual interest expense | $ 15 | $ 17 |
Interest cost related to amortization of debt issuance costs | 1 | 1 |
Interest cost related to amortization of the debt discount | $ 22 | $ 24 |
Debt, Secured Revolving Facil_7
Debt, Secured Revolving Facility and Secured Revolving Line of Credit (Details) (Future Payments on Total Debt) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Debt Disclosure [Abstract] | ||
2020 | $ 0 | |
2021 | 0 | |
2022 | 312 | |
2023 | 0 | |
2024 | 0 | |
2025 and thereafter | 251 | |
Total | $ 563 | $ 1,528 |
Financial Instruments (Details)
Financial Instruments (Details) (Cash, Cash Equivalents and Marketable Securities) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Schedule of Investments [Line Items] | ||
Total Fair Value | $ 1,503 | $ 1,156 |
Cash and Cash Equivalents | 1,466 | 1,078 |
Marketable securities | 37 | 78 |
Level 1 | ||
Schedule of Investments [Line Items] | ||
Total Fair Value | 1 | 275 |
Cash and Cash Equivalents | 1 | 275 |
Marketable securities | 0 | 0 |
Level 2 | ||
Schedule of Investments [Line Items] | ||
Total Fair Value | 37 | 566 |
Cash and Cash Equivalents | 0 | 488 |
Marketable securities | 37 | 78 |
Cash | ||
Schedule of Investments [Line Items] | ||
Total Fair Value | 1,465 | 315 |
Cash and Cash Equivalents | 1,465 | 315 |
Marketable securities | 0 | 0 |
Government money Market Funds | Level 1 | ||
Schedule of Investments [Line Items] | ||
Total Fair Value | 1 | 275 |
Cash and Cash Equivalents | 1 | 275 |
Marketable securities | 0 | 0 |
Commercial Paper | Level 2 | ||
Schedule of Investments [Line Items] | ||
Total Fair Value | 37 | 566 |
Cash and Cash Equivalents | 0 | 488 |
Marketable securities | $ 37 | $ 78 |
Financial Instruments (Detail_2
Financial Instruments (Details) (Narrative) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 28, 2019 | Sep. 28, 2019 | Dec. 29, 2018 | Sep. 14, 2016 | |
Schedule of Investments [Line Items] | ||||
Conversion price (USD per share) | $ 8 | |||
Foreign Currency Forward Contracts | ||||
Schedule of Investments [Line Items] | ||||
Derivative, notional amount | $ 739 | $ 396 | ||
Derivative, term of contract | 12 months | |||
Government money Market Funds | Level 1 | ||||
Schedule of Investments [Line Items] | ||||
Cash equivalents pledged as collateral | $ 4 | 5 | ||
Mutual Funds | Level 1 | ||||
Schedule of Investments [Line Items] | ||||
Restricted investments | $ 30 | $ 21 | ||
2.125% Notes | ||||
Schedule of Investments [Line Items] | ||||
Interest rate, stated percentage | 2.125% | 2.125% | 2.125% | |
Debt instrument, stock price (USD per share) | $ 46.18 | |||
Conversion price (USD per share) | $ 8 |
Financial Instruments (Detail_3
Financial Instruments (Details) (Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments not Recorded at Fair Value) - USD ($) $ in Millions | Dec. 28, 2019 | Sep. 28, 2019 | Dec. 29, 2018 | Sep. 14, 2016 |
Schedule of Investments [Line Items] | ||||
Debt issuance cost, net | $ 4 | $ 16 | ||
Unamortized debt discount associated with 2.125% Notes | $ 73 | 262 | ||
2.125% Notes | ||||
Schedule of Investments [Line Items] | ||||
Interest rate, stated percentage | 2.125% | 2.125% | 2.125% | |
Carrying Amount | ||||
Schedule of Investments [Line Items] | ||||
Short-term debt | $ 0 | 136 | ||
Long-term debt, net | 486 | 1,114 | ||
Estimated Fair Value | Level 2 | ||||
Schedule of Investments [Line Items] | ||||
Short-term debt | 0 | 136 | ||
Long-term debt, net | 1,823 | 2,428 | ||
2.125% Notes | ||||
Schedule of Investments [Line Items] | ||||
Unamortized debt discount associated with 2.125% Notes | $ 73 | 262 | ||
Interest rate, stated percentage | 2.125% | |||
Carrying amount of the equity component, net | $ 95 | $ 305 |
Financial Instruments (Detail_4
Financial Instruments (Details) (Gain (Loss) from Hedging Transactions) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Contracts designated as cash flow hedging instruments | ||
Gain (loss) reclassified from AOCI into income | $ (6) | |
Cost of sales | ||
Contracts not designated as hedging instruments | ||
Total losses | (1) | |
Research and development | ||
Contracts not designated as hedging instruments | ||
Total losses | (4) | $ (4) |
Marketing, general and administrative | ||
Contracts not designated as hedging instruments | ||
Total losses | (1) | (1) |
Other expense, net | ||
Contracts not designated as hedging instruments | ||
Total losses | (1) | (3) |
Foreign Currency Forward Contracts | Cost of sales | Cash Flow Hedging | Contracts designated as cash flow hedging instruments | ||
Contracts designated as cash flow hedging instruments | ||
Gain (loss) reclassified from AOCI into income | (1) | |
Foreign Currency Forward Contracts | Research and development | Cash Flow Hedging | Contracts designated as cash flow hedging instruments | ||
Contracts designated as cash flow hedging instruments | ||
Gain (loss) reclassified from AOCI into income | (4) | (4) |
Foreign Currency Forward Contracts | Marketing, general and administrative | Cash Flow Hedging | Contracts designated as cash flow hedging instruments | ||
Contracts designated as cash flow hedging instruments | ||
Gain (loss) reclassified from AOCI into income | (1) | (1) |
Foreign Currency Forward Contracts | Other expense, net | Contracts not designated as hedging instruments | ||
Contracts not designated as hedging instruments | ||
Losses recognized in earnings | $ (1) | $ (3) |
Financial Instruments (Detail_5
Financial Instruments (Details) (Summary of Derivative Instruments) - Foreign Currency Forward Contracts - USD ($) $ in Millions | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Derivative [Line Items] | ||
Derivative, term of contract | 12 months | |
Derivative, notional amount | $ 739 | $ 396 |
Maximum length of time, foreign currency cash flow hedge | 12 months | |
Level 2 | Cash Flow Hedging | ||
Derivative [Line Items] | ||
Contracts designated as cash flow hedging instruments - gains | $ 2 | 1 |
Contracts designated as cash flow hedging instruments - losses | $ (2) | $ (8) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | $ 1,266 | $ 596 | |
Ending balance | 2,827 | 1,266 | $ 596 |
Accumulated other comprehensive income (loss) | |||
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (8) | 6 | (5) |
Total other comprehensive income (loss) | 8 | (14) | 11 |
Ending balance | (8) | 6 | |
Unrealized gains (losses) on cash flow hedges | |||
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (8) | ||
Unrealized gain (losses) arising during the period, net of tax of zero | 2 | ||
Reclassification adjustment for gains realized and included in net income, net of tax of zero | 6 | ||
Total other comprehensive income (loss) | 8 | ||
Ending balance | 0 | (8) | |
Unrealized gains (losses) on cash flow hedges | |||
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | $ (8) | 6 | |
Unrealized gain (losses) arising during the period, net of tax of zero | (19) | ||
Reclassification adjustment for gains realized and included in net income, net of tax of zero | 5 | ||
Total other comprehensive income (loss) | (14) | ||
Ending balance | $ (8) | $ 6 |
Concentrations of Credit and _2
Concentrations of Credit and Operation Risk (Details) - Accounts Receivable - Customer Concentration Risk | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Top Customer One | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 15.00% | 16.00% |
Top Customer Two | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 9.00% | 12.00% |
Top Customer Three | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 8.00% | 7.00% |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Sep. 14, 2016 | |
Numerator-Net income (loss): | ||||||||||||
Numerator for basic and diluted earnings per share | $ 170 | $ 120 | $ 35 | $ 16 | $ 38 | $ 102 | $ 116 | $ 81 | $ 341 | $ 337 | $ (33) | |
Denominator-Weighted average shares: | ||||||||||||
Denominator for basic earnings per share (in shares) | 1,140 | 1,097 | 1,084 | 1,044 | 1,002 | 987 | 972 | 968 | 1,091 | 982 | 952 | |
Effect of potentially dilutive shares: | ||||||||||||
Employee equity incentive plans and warrants (in shares) | 29 | 82 | 0 | |||||||||
Denominator for diluted earnings per share (in shares) | 1,188 | 1,117 | 1,109 | 1,094 | 1,079 | 1,076 | 1,147 | 1,039 | 1,120 | 1,064 | 952 | |
Earnings (loss) per share: | ||||||||||||
Basic (in usd per share) | $ 0.15 | $ 0.11 | $ 0.03 | $ 0.01 | $ 0.04 | $ 0.10 | $ 0.12 | $ 0.08 | $ 0.31 | $ 0.34 | $ (0.03) | |
Diluted (in usd per share) | $ 0.15 | $ 0.11 | $ 0.03 | $ 0.01 | $ 0.04 | $ 0.09 | $ 0.11 | $ 0.08 | $ 0.30 | $ 0.32 | $ (0.03) | |
2.125% Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate, stated percentage | 2.125% | 2.125% | 2.125% | 2.125% | ||||||||
Stock Compensation Plan | ||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 93 | 105 | 189 |
Common Stock and Stock-Based _3
Common Stock and Stock-Based Incentive Compensation Plans (Details) (Common Shares Outstanding) - shares shares in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Number of shares | |||
Balance, beginning of period (in shares) | 1,010 | ||
Balance, end of period (in shares) | 1,175 | 1,010 | |
Common stock | |||
Number of shares | |||
Balance, beginning of period (in shares) | 1,005 | 967 | 935 |
Common stock issued under employee equity incentive plans, net of tax withholding (in shares) | 20 | 31 | 32 |
Issuance of common stock upon warrant exercise (in shares) | 75 | 0 | 0 |
Issuance of common stock to partially settle convertible debt (in shares) | 69 | 0 | 0 |
Issuance of treasury stock to partially settle debt (in shares) | 1 | 7 | 0 |
Balance, end of period (in shares) | 1,170 | 1,005 | 967 |
Common Stock and Stock-Based _4
Common Stock and Stock-Based Incentive Compensation Plans (Details) (Narrative) - USD ($) | 6 Months Ended | 12 Months Ended | |||
Dec. 28, 2019 | Jun. 29, 2019 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Expiration period | 10 years | ||||
Shares available for grant (shares) | 61,000,000 | 61,000,000 | |||
Excess tax benefits from stock-based compensation | $ 0 | $ 0 | $ 0 | ||
Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Purchase price of common stock | 100.00% | ||||
Stock options, shares granted, weighted average estimated grant date fair value per share (USD per share) | $ 13.31 | $ 7.62 | $ 5.46 | ||
Expected dividends | 0.00% | 0.00% | 0.00% | ||
Stock options, shares exercised, total intrinsic value | $ 84,000,000 | $ 67,000,000 | $ 27,000,000 | ||
Unrecognized compensation expense related to stock options | $ 12,000,000 | $ 12,000,000 | |||
Weighted-average remaining contractual life (in years) | 1 year 10 months 13 days | ||||
Time Based Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted stock units, shares purchased, weighted average price per share (USD per share) | $ 0 | $ 0 | |||
Unrecognized compensation expense related to stock options | $ 322,000,000 | $ 322,000,000 | |||
Weighted-average remaining contractual life (in years) | 1 year 9 months 18 days | ||||
Granted (USD per share) | $ 32.52 | $ 17.66 | $ 12.65 | ||
Restricted stock units, shares vested, total fair value | $ 395,000,000 | $ 315,000,000 | $ 294,000,000 | ||
Weighted-average grant date fair value (usd per share) | $ 22.93 | $ 22.93 | $ 12.86 | ||
Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expected dividends | 0.00% | 0.00% | 0.00% | ||
Weighted-average remaining contractual life (in years) | 2 years 6 months 21 days | ||||
Granted (USD per share) | $ 50 | $ 21.67 | $ 17.18 | ||
Restricted stock units, shares vested, total fair value | $ 65,000,000 | $ 84,000,000 | $ 34,000,000 | ||
Weighted-average grant date fair value (usd per share) | $ 36.13 | $ 36.13 | $ 14.58 | ||
Restricted stock units, total unrecognized compensation expense, net of estimated forfeitures | $ 85,000,000 | $ 85,000,000 | |||
Performance Shares | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Range of target shares granted | 0.00% | ||||
Performance Shares | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Range of target shares granted | 250.00% | ||||
ESPP | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Purchase price of common stock | 85.00% | ||||
Maximum percent of earnings withheld during offering period | 10.00% | 10.00% | |||
Offering period | 6 months | ||||
Shares available for issuance (shares) | 42,000,000 | 42,000,000 | |||
Expected dividends | 0.00% | 0.00% | 0.00% | ||
Weighted-average remaining contractual life (in years) | 4 months 13 days | ||||
Weighted-average grant date fair value (usd per share) | $ 9.96 | $ 9.96 | $ 4.71 | $ 3.46 | |
Share-based compensation, common stock purchased | 1,400,000 | 1,800,000 | |||
Weighted average purchase price (USD per share) | $ 23.77 | $ 16.18 | $ 23.77 | ||
Restricted stock units, total unrecognized compensation expense, net of estimated forfeitures | $ 9,000,000 | $ 9,000,000 | |||
Aggregate cash proceeds | $ 62,000,000 | ||||
Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares available for issuance (shares) | 30,000,000 | 30,000,000 |
Common Stock and Stock-Based _5
Common Stock and Stock-Based Incentive Compensation Plans (Details) (Allocation of Recognized Period Costs) - USD ($) | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense, net of tax of $0 | $ 197,000,000 | $ 137,000,000 | $ 97,000,000 |
Share-based payment arrangement, expense, tax benefit | 0 | ||
Cost of sales | |||
Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense, net of tax of $0 | 6,000,000 | 4,000,000 | 2,000,000 |
Research and development | |||
Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense, net of tax of $0 | 129,000,000 | 91,000,000 | 57,000,000 |
Marketing, general, and administrative | |||
Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense, net of tax of $0 | $ 62,000,000 | $ 42,000,000 | $ 38,000,000 |
Common Stock and Stock-Based _6
Common Stock and Stock-Based Incentive Compensation Plans (Details) (Stock Option Valuation Assumptions) - Stock Options | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 57.26% | ||
Risk-free interest rate | 1.68% | ||
Expected dividends | 0.00% | 0.00% | 0.00% |
Expected life (in years) | 3 years 11 months 1 day | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 52.60% | 51.51% | |
Risk-free interest rate | 1.53% | 2.20% | |
Expected life (in years) | 3 years 11 months 8 days | 3 years 11 months 1 day | |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 56.51% | 60.46% | |
Risk-free interest rate | 2.51% | 2.83% | |
Expected life (in years) | 3 years 11 months 12 days | 3 years 11 months 8 days |
Common Stock and Stock-Based _7
Common Stock and Stock-Based Incentive Compensation Plans (Details) (Weighted Average Valuation Assumptions for Stock Options) - Stock Options $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended |
Dec. 28, 2019USD ($)$ / sharesshares | |
Outstanding Number of Shares | |
Balance, beginning of period (in shares) | shares | 13 |
Granted (in shares) | shares | 1 |
Canceled (in shares) | shares | (1) |
Exercised (in shares) | shares | (3) |
Balance, end of period (in shares) | shares | 10 |
Exercisable December 28, 2019 (in shares) | shares | 9 |
Weighted- Average Exercise Price | |
Balance, beginning of period (USD per share) | $ / shares | $ 5.33 |
Granted (USD per share) | $ / shares | 32.86 |
Canceled (USD per share) | $ / shares | 17.52 |
Exercised (USD per share) | $ / shares | 3.74 |
Balance, end of period (USD per share) | $ / shares | 7.56 |
Exercisable December 28, 2019 (USD per share) | $ / shares | $ 4.56 |
Aggregate Intrinsic Value | |
Balance | $ | $ 226 |
Exercisable December 28, 2019 | $ | $ 215 |
Weighted-Average Remaining Contractual Life (in years) | |
Balance | 3 years 2 months 12 days |
Exercisable December 28, 2019 | 2 years 8 months 19 days |
Common Stock and Stock-Based _8
Common Stock and Stock-Based Incentive Compensation Plans (Details) (Restricted Stock Units Activities and PRSUs) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Time Based Restricted Stock Units | |||
Number of Shares | |||
Beginning of period (in shares) | 24 | ||
Granted (in shares) | 8 | ||
Forfeited (in shares) | (2) | ||
Vested (in shares) | (12) | ||
End of period (in shares) | 18 | 24 | |
Weighted- Average Fair Value | |||
Beginning of period, (USD per share) | $ 12.86 | ||
Granted (USD per share) | 32.52 | $ 17.66 | $ 12.65 |
Forfeited (USD per share) | 16.49 | ||
Vested (USD per share) | 10.39 | ||
End of period, (USD per share) | $ 22.93 | $ 12.86 | |
Aggregate Intrinsic Value | $ 503 | ||
Weighted-Average Remaining Contractual Life (in years) | 1 year 2 months 8 days | ||
Performance Shares | |||
Number of Shares | |||
Beginning of period (in shares) | 2 | ||
Granted (in shares) | 2 | ||
Forfeited (in shares) | 0 | ||
Vested (in shares) | (1) | ||
End of period (in shares) | 3 | 2 | |
Weighted- Average Fair Value | |||
Beginning of period, (USD per share) | $ 14.58 | ||
Granted (USD per share) | 50 | $ 21.67 | $ 17.18 |
Forfeited (USD per share) | 22.39 | ||
Vested (USD per share) | 3.60 | ||
End of period, (USD per share) | $ 36.13 | $ 14.58 | |
Aggregate Intrinsic Value | $ 90 | ||
Weighted-Average Remaining Contractual Life (in years) | 2 years 6 months 21 days |
Common Stock and Stock-Based _9
Common Stock and Stock-Based Incentive Compensation Plans (Details) (Weighted Average Valuation Assumptions for PRSUs) - Performance Shares | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 64.39% | ||
Risk-free interest rate | 1.50% | ||
Expected dividends | 0.00% | 0.00% | 0.00% |
Expected term (in years) | 3 years | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 60.54% | 63.77% | |
Risk-free interest rate | 1.56% | 2.06% | |
Expected term (in years) | 2 years 5 months 22 days | 2 years 5 months 23 days | |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 62.52% | 67.97% | |
Risk-free interest rate | 2.49% | 2.82% | |
Expected term (in years) | 5 years | 3 years |
Common Stock and Stock-Based_10
Common Stock and Stock-Based Incentive Compensation Plans (Details) (Weighted Average Valuation Assumptions for ESPP) - ESPP | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 56.07% | ||
Risk-free interest rate | 1.36% | ||
Expected dividends | 0.00% | 0.00% | 0.00% |
Expected term (in years) | 6 months | 6 months | 5 months 26 days |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 48.95% | 45.88% | |
Risk-free interest rate | 1.58% | 2.05% | |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 67.02% | 66.66% | |
Risk-free interest rate | 2.46% | 2.52% |
Retirement Benefit Plans (Detai
Retirement Benefit Plans (Details) (Narrative) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Retirement Benefits [Abstract] | |||
Employer matching contribution, percent of match | 75.00% | ||
Maximum allowed percentage of employee's pre-tax salary contributed to the 401(k) plan | 6.00% | ||
Amount of company contributions to the 401(k) plan | $ 25 | $ 21 | $ 18 |
Income Taxes (Details) (Schedul
Income Taxes (Details) (Schedule of Income (Loss) before Income Tax) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
U.S. | $ 334 | $ 114 | $ 53 | ||||||||
Non-U.S. | 38 | 214 | (68) | ||||||||
Income (loss) before income taxes and equity loss | $ 205 | $ 126 | $ 37 | $ 4 | $ 3 | $ 114 | $ 123 | $ 90 | $ 372 | $ 328 | $ (15) |
Income Taxes (Details) (Narrati
Income Taxes (Details) (Narrative) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income Tax Contingency [Line Items] | |||
Income tax refunds from foreign jurisdiction related to legal settlement | $ 22 | $ 36 | |
Tax reform act | 13 | (13) | $ 0 |
Withholding taxes on cross-border transactions | 22 | 7 | 27 |
Foreign taxes in profitable locations | 7 | 38 | |
Tax benefit for Canadian tax credits and the monetization | 1 | ||
Increase (decrease) in valuation allowance | 19 | ||
Tax Cuts and Jobs Act, provisional undistributed accumulated earnings of foreign subsidiary | 142 | ||
Unrecognized tax benefits that would impact effective tax rate | 17 | 9 | 9 |
Unrecognized tax benefits, income tax penalties and interest accrued | $ 0 | $ 0 | $ 0 |
Income Taxes (Details) (Sched_2
Income Taxes (Details) (Schedule of Provision (Benefit) for Income Taxes) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Current: | |||||||||||
U.S. Federal | $ (13) | $ 12 | $ (3) | ||||||||
U.S. State and Local | 1 | 0 | 0 | ||||||||
Non-U.S. | 50 | (17) | 37 | ||||||||
Total | 38 | (5) | 34 | ||||||||
Deferred: | |||||||||||
U.S. Federal | 0 | 0 | (15) | ||||||||
Non-U.S. | (7) | (4) | (1) | ||||||||
Total | (7) | (4) | (16) | ||||||||
Provision for (benefit from) income taxes | $ 35 | $ 7 | $ 2 | $ (13) | $ (35) | $ 12 | $ 6 | $ 8 | $ 31 | $ (9) | $ 18 |
Income Taxes (Details) (Sched_3
Income Taxes (Details) (Schedule of Effective Income Tax Rate Reconciliation) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
Statutory federal income tax expense (benefit) at 21%, 21% and 35% rate | $ 78 | $ 69 | $ 22 | ||||||||
State taxes | 1 | 1 | 1 | ||||||||
Foreign withholding taxes (refund) | 22 | (29) | 27 | ||||||||
Foreign Rate benefit | 2 | 2 | 0 | ||||||||
Valuation Allowance Change | (59) | (64) | (12) | ||||||||
Credit monetization | 0 | (1) | (20) | ||||||||
Tax Reform Act | (13) | 13 | 0 | ||||||||
Provision for (benefit from) income taxes | $ 35 | $ 7 | $ 2 | $ (13) | $ (35) | $ 12 | $ 6 | $ 8 | $ 31 | $ (9) | $ 18 |
Federal statutory income tax rate | 21.00% | 21.00% | 35.00% |
Income Taxes (Details) (Sched_4
Income Taxes (Details) (Schedule of Deferred Tax Assets and Liabilities) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Deferred tax assets: | ||
Net operating loss carryovers | $ 1,455 | $ 1,533 |
Accruals and reserves not currently deductible | 245 | 123 |
Deferred Tax Assets, Goodwill and Intangible Assets | 45 | 101 |
Federal and state tax credit carryovers | 617 | 527 |
Foreign research and development ITC credits | 429 | 370 |
Other | 159 | 104 |
Total deferred tax assets | 2,950 | 2,758 |
Less: valuation allowance | (2,743) | (2,580) |
Total deferred tax assets, net of valuation allowance | 207 | 178 |
Deferred tax liabilities: | ||
Discount of convertible notes | (22) | (54) |
Undistributed foreign earnings | (110) | (105) |
Other | (64) | (15) |
Total deferred tax liabilities | (196) | (174) |
Net deferred tax assets | $ 11 | $ 4 |
Income Taxes (Details) (Sched_5
Income Taxes (Details) (Schedule of Deferred Tax Assets and Liabilities, Current and Noncurrent) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Income Tax Disclosure [Abstract] | ||
Deferred tax assets | $ 22 | $ 15 |
Deferred tax liabilities | (11) | (11) |
Net deferred tax assets | $ 11 | $ 4 |
Income Taxes (Details) (Summary
Income Taxes (Details) (Summary of Tax Attribute Carryforwards) $ in Millions | Dec. 28, 2019USD ($) |
Federal | |
Tax Attribute Carryforwards [Line Items] | |
Operating loss carryforwards, amount | $ 6,700 |
Tax credit carryforward, amount | 399 |
State/Provincial | |
Tax Attribute Carryforwards [Line Items] | |
Operating loss carryforwards, amount | 500 |
Tax credit carryforward, amount | 239 |
Foreign Tax Authority | |
Tax Attribute Carryforwards [Line Items] | |
Tax credit carryforward, amount | $ 365 |
Income Taxes (Details) (Sched_6
Income Taxes (Details) (Schedule of Gross Unrecognized Tax Benefits) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 49 | $ 49 | $ 42 |
Increases for tax positions taken in prior years | 5 | 1 | 7 |
Decreases for tax positions taken in prior years | 0 | (1) | (2) |
Increases for tax positions taken in the current year | 15 | 3 | 3 |
Decreases for settlements with taxing authorities | (3) | (2) | 0 |
Decreases for lapsing of the statute of limitations | (1) | (1) | (1) |
Balance at end of year | $ 65 | $ 49 | $ 49 |
Segment Reporting (Details) (Su
Segment Reporting (Details) (Summary of Operations by Segment) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019USD ($) | Sep. 28, 2019USD ($) | Jun. 29, 2019USD ($) | Mar. 30, 2019USD ($) | Dec. 29, 2018USD ($) | Sep. 29, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 28, 2019USD ($)segment | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | |
Segment Reporting [Abstract] | |||||||||||
Number of reportable segments | segment | 2 | ||||||||||
Segment Reporting Information | |||||||||||
Total net revenue | $ 2,127 | $ 1,801 | $ 1,531 | $ 1,272 | $ 1,419 | $ 1,653 | $ 1,756 | $ 1,647 | $ 6,731 | $ 6,475 | $ 5,253 |
Total operating income | $ 348 | $ 186 | $ 59 | $ 38 | $ 28 | $ 150 | $ 153 | $ 120 | 631 | 451 | 127 |
Operating Segments | Computing and Graphics | |||||||||||
Segment Reporting Information | |||||||||||
Total net revenue | 4,709 | 4,125 | 2,977 | ||||||||
Total operating income | 577 | 470 | 92 | ||||||||
Operating Segments | Enterprise Embedded And Semi-Customs | |||||||||||
Segment Reporting Information | |||||||||||
Total net revenue | 2,022 | 2,350 | 2,276 | ||||||||
Total operating income | 263 | 163 | 132 | ||||||||
Segment Reconciling Items | |||||||||||
Segment Reporting Information | |||||||||||
Total operating income | $ (209) | $ (182) | $ (97) |
Segment Reporting (Details) (Co
Segment Reporting (Details) (Components of Other Operating Income (Loss)) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Segment Reporting Information | |||||||||||
Stock-based compensation expense | $ (197) | $ (137) | $ (97) | ||||||||
Impairment of technology licenses | 0 | (45) | 0 | ||||||||
Operating income | $ 348 | $ 186 | $ 59 | $ 38 | $ 28 | $ 150 | $ 153 | $ 120 | 631 | 451 | 127 |
Segment Reconciling Items | |||||||||||
Segment Reporting Information | |||||||||||
Stock-based compensation expense | (197) | (137) | (97) | ||||||||
Impairment of technology licenses | 0 | (45) | 0 | ||||||||
Loss contingency on legal matter | (12) | 0 | 0 | ||||||||
Operating income | $ (209) | $ (182) | $ (97) |
Segment Reporting (Details) (Sa
Segment Reporting (Details) (Sales by Customer) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Segment Reporting Information | |||||||||||
Net revenue | $ 2,127 | $ 1,801 | $ 1,531 | $ 1,272 | $ 1,419 | $ 1,653 | $ 1,756 | $ 1,647 | $ 6,731 | $ 6,475 | $ 5,253 |
Sales to major customers | Customer Concentration Risk | Customer A | |||||||||||
Segment Reporting Information | |||||||||||
Concentration risk percentage | 12.00% | 19.00% | 23.00% | ||||||||
Sales to major customers | Customer Concentration Risk | Customer B | |||||||||||
Segment Reporting Information | |||||||||||
Concentration risk percentage | 11.00% | 15.00% | |||||||||
United States | |||||||||||
Segment Reporting Information | |||||||||||
Net revenue | $ 1,764 | $ 1,327 | $ 1,360 | ||||||||
China (including Hong Kong) | |||||||||||
Segment Reporting Information | |||||||||||
Net revenue | 1,736 | 1,319 | 974 | ||||||||
Japan | |||||||||||
Segment Reporting Information | |||||||||||
Net revenue | 840 | 1,225 | 1,215 | ||||||||
Europe | |||||||||||
Segment Reporting Information | |||||||||||
Net revenue | 762 | 470 | 263 | ||||||||
Taiwan | |||||||||||
Segment Reporting Information | |||||||||||
Net revenue | 719 | 1,197 | 738 | ||||||||
Singapore | |||||||||||
Segment Reporting Information | |||||||||||
Net revenue | 597 | 728 | 550 | ||||||||
Other countries | |||||||||||
Segment Reporting Information | |||||||||||
Net revenue | $ 313 | $ 209 | $ 153 |
Segment Reporting (Details) (Lo
Segment Reporting (Details) (Long-lived Assets by Geographic Area) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Segment Reporting Information | ||
Property and equipment, net | $ 500 | $ 348 |
United States | ||
Segment Reporting Information | ||
Property and equipment, net | 300 | 232 |
Canada | ||
Segment Reporting Information | ||
Property and equipment, net | 99 | 51 |
China (including Taiwan) | ||
Segment Reporting Information | ||
Property and equipment, net | 36 | 17 |
Singapore | ||
Segment Reporting Information | ||
Property and equipment, net | 33 | 29 |
Other countries | ||
Segment Reporting Information | ||
Property and equipment, net | $ 32 | $ 19 |
Other Expense, Net (Details)
Other Expense, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Apr. 29, 2016 | |
Income Statement Related Disclosures [Abstract] | ||||||||||||
Interest income | $ 15 | $ 18 | $ 6 | |||||||||
Gain on sale of 85% ATMP JV | 0 | 0 | 3 | |||||||||
Loss on debt redemption, repurchase and conversion | (176) | (12) | (12) | |||||||||
Other | (4) | (6) | (6) | |||||||||
Other expense, net | $ (125) | $ (36) | $ 3 | $ (7) | $ 4 | $ (6) | $ 1 | $ 1 | $ (165) | $ 0 | $ (9) | |
TFME’s Affiliates | Joint Venture | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Equity interest | 85.00% |
Commitments and Guarantees (Det
Commitments and Guarantees (Details) (Narrative) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Long-term Purchase Commitment [Line Items] | |||
Option to extend, term | 5 years | ||
Operating lease, expense | $ 56 | ||
Operating leases, rent expense | $ 53 | $ 44 | |
Variable lease, cost | 25 | ||
Operating lease, payments | 47 | ||
Software and Technology License | |||
Long-term Purchase Commitment [Line Items] | |||
Total unconditional purchase commitments | $ 146 |
Commitments and Guarantees (Sup
Commitments and Guarantees (Supplemental Information Related to Leases) (Details) | Dec. 28, 2019 |
Commitments and Contingencies Disclosure [Abstract] | |
Weighted-average remaining lease term – operating leases | 6 years 3 months 3 days |
Weighted-average discount rate – operating leases | 5.55% |
Commitments and Guarantees (Ope
Commitments and Guarantees (Operating Lease Obligations) (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 30, 2018 | Dec. 29, 2018 |
Commitments and Contingencies Disclosure [Abstract] | |||
2020 | $ 54 | ||
2021 | 48 | ||
2022 | 44 | ||
2023 | 37 | ||
2024 | 33 | ||
2025 and thereafter | 71 | ||
Total minimum lease payments | 287 | ||
Less: interest | (45) | ||
Present value of net minimum lease payments | 242 | $ 261 | |
Less: current portion | (43) | $ 0 | |
Total long-term operating lease liabilities | $ 199 |
Commitments and Guarantees (D_2
Commitments and Guarantees (Details) (Unconditional Purchase Obligations) $ in Millions | Dec. 28, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2019 | $ 1,731 |
2020 | 642 |
2021 | 58 |
2022 | 5 |
2023 | 2 |
2025 and thereafter | 7 |
Total unconditional purchase commitments | $ 2,445 |
Commitments and Guarantees (D_3
Commitments and Guarantees (Details) (Schedule of Changes in Product Warranty Liability) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Changes in Product Warranty Liability [Roll Forward] | ||
Beginning balance | $ 13 | $ 12 |
New warranties issued during the period | 31 | 27 |
Settlements during the period | (29) | (28) |
Changes in liability for pre-existing warranties during the period, including expirations | 0 | 2 |
Ending balance | $ 15 | $ 13 |
Contingencies (Details)
Contingencies (Details) $ in Millions | Nov. 15, 2019patent | Jul. 02, 2018patentlegal_entity | Dec. 28, 2019USD ($)claimstatesite |
Loss Contingencies [Line Items] | |||
Site contingency, number of sites | site | 3 | ||
Estimated environmental liability | $ | $ 3 | ||
Hauck et al. Litigation | |||
Loss Contingencies [Line Items] | |||
Number of claims filed | claim | 3 | ||
Number of plaintiffs | claim | 6 | ||
Number of states | state | 4 | ||
Quarterhill Inc. Litigation | |||
Loss Contingencies [Line Items] | |||
Number of plaintiffs | legal_entity | 3 | ||
Number of claims | legal_entity | 3 | ||
Monterey Research Litigation | |||
Loss Contingencies [Line Items] | |||
Number of patents allegedly infringed | 6 | ||
Aquila | Quarterhill Inc. Litigation | |||
Loss Contingencies [Line Items] | |||
Number of patents allegedly infringed | 2 | ||
Collabo | Quarterhill Inc. Litigation | |||
Loss Contingencies [Line Items] | |||
Number of patents allegedly infringed | 1 | ||
Polaris | Quarterhill Inc. Litigation | |||
Loss Contingencies [Line Items] | |||
Number of patents allegedly infringed | 2 |
Supplementary Financial Infor_3
Supplementary Financial Information (unaudited) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Quarterly Financial Data [Abstract] | |||||||||||
Net revenue | $ 2,127 | $ 1,801 | $ 1,531 | $ 1,272 | $ 1,419 | $ 1,653 | $ 1,756 | $ 1,647 | $ 6,731 | $ 6,475 | $ 5,253 |
Cost of sales | 1,178 | 1,024 | 910 | 751 | 882 | 992 | 1,104 | 1,050 | 3,863 | 4,028 | 3,466 |
Gross margin | 949 | 777 | 621 | 521 | 537 | 661 | 652 | 597 | 2,868 | 2,447 | 1,787 |
Research and development | 395 | 406 | 373 | 373 | 371 | 363 | 357 | 343 | 1,547 | 1,434 | 1,196 |
Marketing, general and administrative | 206 | 185 | 189 | 170 | 138 | 148 | 142 | 134 | 750 | 562 | 516 |
Licensing gain | 0 | 0 | 0 | (60) | 0 | 0 | 0 | 0 | (60) | 0 | (52) |
Operating income | 348 | 186 | 59 | 38 | 28 | 150 | 153 | 120 | 631 | 451 | 127 |
Interest expense | (18) | (24) | (25) | (27) | (29) | (30) | (31) | (31) | (94) | (121) | (126) |
Other expense, net | (125) | (36) | 3 | (7) | 4 | (6) | 1 | 1 | (165) | 0 | (9) |
Income before income taxes | 205 | 126 | 37 | 4 | 3 | 114 | 123 | 90 | 372 | 328 | (15) |
Provision for (benefit from) income taxes | 35 | 7 | 2 | (13) | (35) | 12 | 6 | 8 | 31 | (9) | 18 |
Equity loss in investee | 0 | 1 | 0 | (1) | 0 | 0 | (1) | (1) | 0 | (2) | (7) |
Numerator for basic and diluted earnings per share | $ 170 | $ 120 | $ 35 | $ 16 | $ 38 | $ 102 | $ 116 | $ 81 | $ 341 | $ 337 | $ (33) |
Earnings per share | |||||||||||
Basic (in usd per share) | $ 0.15 | $ 0.11 | $ 0.03 | $ 0.01 | $ 0.04 | $ 0.10 | $ 0.12 | $ 0.08 | $ 0.31 | $ 0.34 | $ (0.03) |
Diluted (in usd per share) | $ 0.15 | $ 0.11 | $ 0.03 | $ 0.01 | $ 0.04 | $ 0.09 | $ 0.11 | $ 0.08 | $ 0.30 | $ 0.32 | $ (0.03) |
Shares used in per share calculation | |||||||||||
Basic (shares) | 1,140 | 1,097 | 1,084 | 1,044 | 1,002 | 987 | 972 | 968 | 1,091 | 982 | 952 |
Diluted (in shares) | 1,188 | 1,117 | 1,109 | 1,094 | 1,079 | 1,076 | 1,147 | 1,039 | 1,120 | 1,064 | 952 |
Uncategorized Items - amdform10
Label | Element | Value |
Restricted Cash, Current | us-gaap_RestrictedCashCurrent | $ 3,000,000 |
Restricted Cash, Current | us-gaap_RestrictedCashCurrent | 5,000,000 |
Restricted Cash, Current | us-gaap_RestrictedCashCurrent | 4,000,000 |
Restricted Cash, Noncurrent | us-gaap_RestrictedCashNoncurrent | 3,000,000 |
Restricted Cash, Noncurrent | us-gaap_RestrictedCashNoncurrent | 0 |
Restricted Cash, Noncurrent | us-gaap_RestrictedCashNoncurrent | 0 |
Accounting Standards Update 2016-01 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 2,000,000 |