Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 27, 2020 | Jul. 24, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 27, 2020 | |
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, $0.01 par value | |
Trading Symbol | AMD | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,174,056,713 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000002488 | |
Current Fiscal Year End Date | --12-26 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Income Statement [Abstract] | ||||
Net revenue | $ 1,932 | $ 1,531 | $ 3,718 | $ 2,803 |
Cost of sales | 1,084 | 910 | 2,052 | 1,661 |
Gross profit | 848 | 621 | 1,666 | 1,142 |
Research and development | 460 | 373 | 902 | 746 |
Marketing, general and administrative | 215 | 189 | 414 | 359 |
Licensing gain | 0 | 0 | 0 | (60) |
Operating income | 173 | 59 | 350 | 97 |
Interest expense | (14) | (25) | (27) | (52) |
Other income (expense), net | 1 | 3 | 5 | (4) |
Income before income taxes and equity income (loss) | 160 | 37 | 328 | 41 |
Income tax provision (benefit) | 4 | 2 | 10 | (11) |
Equity income (loss) in investee | 1 | 0 | 1 | (1) |
Net income | $ 157 | $ 35 | $ 319 | $ 51 |
Earnings per share | ||||
Basic (in usd per share) | $ 0.13 | $ 0.03 | $ 0.27 | $ 0.05 |
Diluted (in usd per share) | $ 0.13 | $ 0.03 | $ 0.27 | $ 0.05 |
Shares used in per share calculation | ||||
Basic (in shares) | 1,174 | 1,084 | 1,172 | 1,064 |
Diluted (in shares) | 1,227 | 1,109 | 1,225 | 1,102 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 157 | $ 35 | $ 319 | $ 51 |
Other comprehensive income (loss), net of tax of zero: | ||||
Net change in unrealized gains (losses) on cash flow hedges | 10 | 1 | (4) | 8 |
Total comprehensive income | $ 167 | $ 36 | $ 315 | $ 59 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 27, 2020 | Dec. 28, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 1,775 | $ 1,466 |
Marketable securities | 0 | 37 |
Accounts receivable, net | 1,789 | 1,859 |
Inventories | 1,324 | 982 |
Receivables from related parties | 10 | 20 |
Prepaid expenses and other current assets | 211 | 233 |
Total current assets | 5,109 | 4,597 |
Property and equipment, net | 585 | 500 |
Operating lease right-of-use assets | 215 | 205 |
Goodwill | 289 | 289 |
Investment: equity method | 59 | 58 |
Other non-current assets | 326 | 379 |
Total assets | 6,583 | 6,028 |
Current liabilities: | ||
Short-term Debt | 200 | 0 |
Accounts payable | 802 | 988 |
Payables to related parties | 192 | 213 |
Accrued liabilities | 1,172 | 1,084 |
Other current liabilities | 68 | 74 |
Total current liabilities | 2,434 | 2,359 |
Long-term debt, net | 490 | 486 |
Long-term operating lease liabilities | 204 | 199 |
Other long-term liabilities | 150 | 157 |
Contingencies (See Note 11) | ||
Capital stock: | ||
Common stock, par value 0.01; shares authorized: 2,250; shares issued: 1,179 and 1,175; shares outstanding: 1,174 and 1,170 | 12 | 12 |
Additional paid-in capital | 10,127 | 9,963 |
Treasury stock, at cost (shares held: 5 and 5) | (54) | (53) |
Accumulated deficit | (6,776) | (7,095) |
Accumulated other comprehensive loss | (4) | 0 |
Total stockholders’ equity | 3,305 | 2,827 |
Total liabilities and stockholders’ equity | $ 6,583 | $ 6,028 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheet (Parenthetical) - $ / shares | Jun. 27, 2020 | Dec. 28, 2019 |
Statement of Financial Position [Abstract] | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 2,250,000,000 | 2,250,000,000 |
Common Stock, Shares, Issued | 1,179,000,000 | 1,175,000,000 |
Common Stock, Shares, Outstanding | 1,174,000,000 | 1,170,000,000 |
Treasury Stock, Shares | 5,000,000 | 5,000,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 27, 2020 | Jun. 29, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 319 | $ 51 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 140 | 98 |
Stock-based compensation | 119 | 86 |
Amortization of debt discount and issuance costs | 8 | 18 |
Amortization of operating lease right-of-use assets | 20 | 18 |
Loss on debt redemption | 0 | 8 |
Loss on sale/disposal of property and equipment | 26 | 8 |
Other | 8 | (4) |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 64 | (98) |
Inventories | (342) | (170) |
Receivables from related parties | 10 | 4 |
Prepaid expenses and other assets | (12) | (9) |
Payables to related parties | (21) | (6) |
Accounts payable, accrued liabilities and other | (161) | (187) |
Net cash provided by (used in) operating activities | 178 | (183) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (146) | (120) |
Purchases of available-for-sale debt securities | (55) | (231) |
Proceeds from maturity of available-for-sale debt securities | 92 | 144 |
Collection of deferred proceeds on sale of receivables | 0 | 25 |
Other | 0 | 2 |
Net cash used in investing activities | (109) | (180) |
Cash flows from financing activities: | ||
Proceeds from short-term debt borrowing | 200 | 0 |
Repayment of debt | 0 | (234) |
Proceeds from warrant exercise | 0 | 449 |
Proceeds from sales of common stock through employee equity plans | 42 | 35 |
Other | (2) | (2) |
Net cash provided by financing activities | 240 | 248 |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 309 | (115) |
Cash, cash equivalents, and restricted cash at beginning of period | 1,470 | 1,083 |
Cash, cash equivalents, and restricted cash at end of period | 1,779 | 968 |
Non-cash investing and financing activities: | ||
Purchases of property and equipment, accrued but not paid | 52 | 119 |
Transfer of assets for the acquisition of property and equipment | 41 | 0 |
Issuance of treasury stock to partially settle debt | 0 | 7 |
Operating lease right-of-use assets acquired by assuming related liabilities | 30 | 10 |
Reconciliation of cash, cash equivalents, and restricted cash | ||
Cash and cash equivalents | 1,775 | 963 |
Restricted cash included in Prepaid expenses and other current assets | 4 | 5 |
Total cash, cash equivalents, and restricted cash | $ 1,779 | $ 968 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Common stock | Additional paid-in capital | Treasury stock | Accumulated deficit: | Accumulated other comprehensive loss: |
Beginning balance at Dec. 29, 2018 | $ 10 | $ 8,750 | $ (50) | $ (7,436) | $ (8) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock issued under employee equity plans | 35 | |||||
Stock-based compensation | 86 | |||||
Issuance of common stock upon warrant exercise | 1 | 449 | ||||
Issuance of common stock warrant | 1 | |||||
Issuance of treasury stock to partially settle debt | 4 | 3 | ||||
Other | (3) | |||||
Net income | $ 51 | 51 | ||||
Other comprehensive income (loss) | 8 | |||||
Ending balance at Jun. 29, 2019 | 1,901 | 11 | 9,325 | (50) | (7,385) | 0 |
Beginning balance at Mar. 30, 2019 | 11 | 9,246 | (48) | (7,420) | (1) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock issued under employee equity plans | 34 | |||||
Stock-based compensation | 45 | |||||
Other | (2) | |||||
Net income | 35 | 35 | ||||
Other comprehensive income (loss) | 1 | |||||
Ending balance at Jun. 29, 2019 | 1,901 | 11 | 9,325 | (50) | (7,385) | 0 |
Beginning balance at Dec. 28, 2019 | 2,827 | 12 | 9,963 | (53) | (7,095) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock issued under employee equity plans | 42 | |||||
Stock-based compensation | 119 | |||||
Issuance of common stock warrant | 3 | |||||
Other | (1) | |||||
Net income | 319 | 319 | ||||
Other comprehensive income (loss) | (4) | |||||
Ending balance at Jun. 27, 2020 | 3,305 | 12 | 10,127 | (54) | (6,776) | (4) |
Beginning balance at Mar. 28, 2020 | 12 | 10,026 | (54) | (6,933) | (14) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock issued under employee equity plans | 39 | |||||
Stock-based compensation | 60 | |||||
Issuance of common stock warrant | 2 | |||||
Other | 0 | |||||
Net income | 157 | 157 | ||||
Other comprehensive income (loss) | 10 | |||||
Ending balance at Jun. 27, 2020 | $ 3,305 | $ 12 | $ 10,127 | $ (54) | $ (6,776) | $ (4) |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jun. 27, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Basis of Presentation. The accompanying unaudited condensed consolidated financial statements of Advanced Micro Devices, Inc. and its subsidiaries (the Company or AMD) have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. The results of operations for the three and six months ended June 27, 2020 shown in this report are not necessarily indicative of results to be expected for the full year ending December 26, 2020 or any other future period. In the opinion of the Company’s management, the information contained herein reflects all adjustments necessary for a fair presentation of the Company’s results of operations, financial position, cash flows and stockholders’ equity. All such adjustments are of a normal, recurring nature. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended December 28, 2019. Certain prior period amounts have been reclassified to conform to current period presentation. The Company uses a 52 or 53 week fiscal year ending on the last Saturday in December. The three and six months ended June 27, 2020 and June 29, 2019 each consisted of 13 weeks and 26 weeks, respectively. Significant Accounting Policies. There have been no material changes to the Company’s significant accounting policies in Note 2—Summary of Significant Accounting Policies, of the Notes to the consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 28, 2019. Recently Adopted Accounting Standards Financial Instruments. In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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. The Company adopted this standard in the first quarter of 2020 using the modified retrospective adoption method. This standard did not have an impact on the condensed consolidated financial statements upon adoption. Recently Issued Accounting Standards 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 intra-period 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. This standard is effective for fiscal years beginning after December 15, 2020, with early adoption permitted. The Company will adopt this standard in the first quarter of 2021 and the adoption is not expected to have a material impact on the 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 condensed consolidated financial statements. |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 6 Months Ended |
Jun. 27, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information Accounts Receivable, net As of June 27, 2020 and December 28, 2019, Accounts receivable, net included unbilled accounts receivable of $222 million and $197 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 receivable are expected to be billed and collected within twelve months. Inventories June 27, December 28, (In millions) Raw materials $ 102 $ 94 Work in process 936 691 Finished goods 286 197 Total inventories $ 1,324 $ 982 Property and Equipment, net June 27, December 28, (In millions) Leasehold improvements $ 201 $ 203 Equipment 1,073 951 Construction in progress 148 114 Property and equipment, gross 1,422 1,268 Accumulated depreciation (837) (768) Total property and equipment, net $ 585 $ 500 Other Non-Current Assets June 27, December 28, (In millions) Software technology and licenses, net $ 174 $ 210 Other 152 169 Total other non-current assets $ 326 $ 379 Accrued Liabilities June 27, December 28, (In millions) Accrued compensation and benefits $ 260 $ 285 Marketing programs and advertising expenses 603 454 Other 309 345 Total accrued liabilities $ 1,172 $ 1,084 Remaining Performance Obligations Revenue allocated to remaining performance obligations that are unsatisfied (or partially unsatisfied) as of June 27, 2020 is $417 million, which may include amounts received from customers 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 $180 million of such amounts as revenue in the next 12 months. The revenue allocated to remaining performance obligations does not include amounts which have an original expected contractual duration of one year or less. |
Equity Joint Ventures
Equity Joint Ventures | 6 Months Ended |
Jun. 27, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Joint Ventures | Related Parties — Equity Joint Ventures ATMP Joint Ventures The Company holds a 15% equity interest in two joint ventures (collectively, the ATMP JV) with affiliates of Tongfu Microelectronics Co., Ltd, a Chinese joint stock 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. As of June 27, 2020 and December 28, 2019, the carrying value of the Company’s investment in the ATMP JV was $59 million and $58 million, respectively. 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 the Company’s inventory management program are reported within purchases and resales with the ATMP JV and do not impact the Company’s condensed consolidated statement of operations. The Company’s purchases from the ATMP JV during the three and six months ended June 27, 2020 amounted to $204 million and $355 million, respectively. The Company’s purchases from the ATMP JV during the three and six months ended June 29, 2019 amounted to $172 million and $304 million, respectively. As of June 27, 2020 and December 28, 2019, the amounts payable to the ATMP JV were $192 million and $213 million, respectively, and are included in Payables to related parties on the Company’s condensed consolidated balance sheets. The Company’s resales to the ATMP JV during the three and six months ended June 27, 2020 amounted to $8 million and $15 million, respectively. The Company’s resales to the ATMP JV during the three and six months ended June 29, 2019 amounted to $17 million and $43 million, respectively. As of June 27, 2020 and December 28, 2019, the Company’s receivable from the ATMP JV was $7 million for both periods, and was included in Receivables from related parties on the Company’s condensed consolidated balance sheets. THATIC Joint Ventures The Company holds equity interests in two joint ventures (collectively, the THATIC JV) with Higon Information Technology Co., Ltd. (THATIC), a third party Chinese entity. The Company holds a majority interest in one of the joint ventures and a minority interest in the other. The Company is not a primary beneficiary of the THATIC JV and, as such, the Company does not consolidate either of these entities and accounts for its equity interests in the THATIC JV under the equity method of accounting. The Company’s share in the net losses of the THATIC JV is not recorded in the Company’s condensed 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 both June 27, 2020 and 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. The Company recognized $60 million as licensing gain associated with the Licensed IP during the six months ended June 29, 2019. The Company’s receivable from the THATIC JV was $3 million and $13 million as of June 27, 2020 and December 28, 2019, respectively, and was included in Receivables from related parties on the Company’s condensed consolidated balance sheets. In June 2019, the Bureau of Industry and Security of the United States Department of Commerce 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. |
Debt and Secured Revolving Faci
Debt and Secured Revolving Facility | 6 Months Ended |
Jun. 27, 2020 | |
Debt Disclosure [Abstract] | |
Debt and Secured Revolving Facility | Debt and Secured Revolving Facility Debt The Company’s total debt as of June 27, 2020 and December 28, 2019 consisted of the following: June 27, December 28, (In millions) 2.125% Convertible Senior Notes Due 2026 (2.125% Notes) $ 251 $ 251 7.50% Senior Notes Due 2022 (7.50% Notes) 312 312 Borrowing under Secured Revolving Facility 200 — Total debt (principal amount) 763 563 Unamortized debt discount for 2.125% Notes (69) (73) Unamortized debt issuance costs for 2.125% Notes (3) (3) Unamortized debt issuance costs for 7.50% Notes (1) (1) Total debt (net) 690 486 Less: short term debt (200) — Total long-term debt (net) $ 490 $ 486 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 which mature on September 1, 2026. The 2.125% Notes are general unsecured senior obligations of the Company. Holders of the 2.125% Notes may convert them at their option during certain time periods and upon the occurrence of certain events, including, during any 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). The above event was met during the second calendar quarter of 2020 and as a result, the 2.125% Notes are convertible at the option of the holder from July 1, 2020 until September 30, 2020. The Company’s current intent is to deliver shares of its common stock upon conversion of the 2.125% Notes. 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 condensed consolidated balance sheet as of June 27, 2020. 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 carrying amount of the equity component of the 2.125% Notes was $95 million as of both June 27, 2020 and December 28, 2019. 7.50% Senior Notes Due 2022 On August 15, 2012, the Company issued $500 million of its 7.50% Senior Notes due 2022. As of June 27, 2020, the outstanding aggregate principal amount of the 7.50% Notes was $312 million. 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 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. On April 6, 2020, the Company borrowed $200 million under the Credit Agreement via the LIBOR rate loan option at an annual interest rate of 2.37% through the maturity date of July 6, 2020. As of June 27, 2020, the Company had $13 million of letters of credit outstanding under the Credit Agreement and the Company was in compliance with all required covenants under the Credit Agreement. Subsequent to quarter end, the Company repaid the $200 million borrowing plus interest upon maturity on July 6, 2020. |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 27, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Financial Instruments | Financial Instruments Fair Value Measurements Financial Instruments Recorded at Fair Value on a Recurring Basis The Company did not have material financial instruments measured and recorded at fair value on a recurring basis as of June 27, 2020. As of December 28, 2019, the Company had $37 million of commercial paper included in Marketable securities on the Company’s condensed consolidated balance sheets, which was classified within Level 2 as their fair value estimates were based on quoted prices for comparable instruments . In addition, as of June 27, 2020 and December 28, 2019, the Company also had $36 million and $30 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 non-current assets on the Company’s condensed consolidated balance sheets. These money market funds and mutual funds are classified within Level 1 as their fair value estimates are based on quoted prices for identical instruments in active markets. The Company is restricted from accessing these investments. Financial Instruments Not Recorded at Fair Value The Company carries its financial instruments at fair value with the exception of its long-term debt. The carrying amounts and estimated fair values of the Company’s long-term debt are as follows: June 27, 2020 December 28, 2019 Carrying Estimated Carrying Estimated (In millions) Long-term debt, net $ 490 $ 1,932 $ 486 $ 1,823 The estimated fair value of the Company’s long-term debt is based on Level 2 inputs as the fair value is based on quoted prices for the Company’s debt or comparable instruments in inactive markets. The Company’s 2.125% Notes, included in Long-term debt, net above, were convertible at the option of the holder as of June 27, 2020. The estimated fair value of the 2.125% Notes considers the relationship between the Company’s stock price of $50.10 as of June 26, 2020, the last trading day of the three months ended June 27, 2020 and the equivalent 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, including short-term debt, approximate their carrying value based on existing payment terms. Hedging Transactions and Derivative Financial Instruments Cash Flow Hedges Designated as Accounting Hedges and Foreign Currency Forward Contracts Not Designated as Accounting Hedges The Company enters into foreign currency forward contracts to hedge its exposure to foreign currency exchange rate risk related to future forecasted transactions denominated in currencies other than the U.S. Dollar. These contracts generally mature within 12 months. These cash flow hedges are designated as accounting hedges and the gains or losses on these contracts are initially deferred in other comprehensive income (loss) and reclassified to earnings in the period during which the hedged transaction affects earnings. The Company also enters into foreign currency forward contracts to reduce the short-term effects of foreign currency fluctuations on certain receivables or payables denominated in currencies other than the U.S. Dollar. These forward contracts generally mature within 3 months. These contracts are not designated as accounting hedges and the gains or losses on these contracts are recognized in other income (expense), net in the condensed consolidated statements of operations based on the changes in fair value. As of June 27, 2020 and December 28, 2019, the notional values of the Company’s outstanding foreign currency forward contracts were $599 million and $739 million, respectively. The fair value of these contracts was not material as of June 27, 2020 and December 28, 2019. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 27, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Loss The table below summarizes the changes in accumulated other comprehensive loss for the three and six months ended June 27, 2020 and June 29, 2019: Three Months Ended Six Months Ended June 27, June 29, June 27, June 29, Gains (losses) on cash flow hedges: (In millions) Beginning balance $ (14) $ (1) $ — $ (8) Net unrealized gains (losses) arising during the period 5 (1) (12) 4 Net losses reclassified into income during the period 5 2 8 4 Total other comprehensive income (loss) 10 1 (4) 8 Ending balance $ (4) $ — $ (4) $ — |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 27, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table sets forth the components of basic and diluted earnings per share: Three Months Ended Six Months Ended June 27, June 29, June 27, June 29, (In millions, except per share amounts) Numerator Net income for basic earnings per share $ 157 $ 35 $ 319 $ 51 Effect of potentially dilutive shares: Interest expense related to the 2.125% Notes 3 — 7 — Net income for diluted earnings per share $ 160 $ 35 $ 326 $ 51 Denominator Basic weighted average shares 1,174 1,084 1,172 1,064 Effect of potentially dilutive shares: Employee equity plans and warrants 22 25 22 38 2.125% Notes 31 — 31 — Diluted weighted average shares 1,227 1,109 1,225 1,102 Earnings per share: Basic $ 0.13 $ 0.03 $ 0.27 $ 0.05 Diluted $ 0.13 $ 0.03 $ 0.27 $ 0.05 Potential shares from employee equity plans and the conversion of the 2.125% Notes totaling 102 million and 103 million shares for the three and six months ended June 29, 2019, respectively, were not included in the earnings per share calculation because their inclusion would have been anti-dilutive. |
Common Stock and Employee Equit
Common Stock and Employee Equity Plans | 6 Months Ended |
Jun. 27, 2020 | |
Equity [Abstract] | |
Common Stock and Employee Equity Plans | Common Stock and Employee Equity Plans Shares of common stock outstanding were as follows: Three Months Ended Six Months Ended June 27, June 29, June 27, June 29, (In millions) Balance, beginning of period 1,171 1,082 1,170 1,005 Common stock issued under employee equity plans 3 4 4 5 Issuance of common stock upon warrant exercise — — — 75 Issuance of treasury stock to partially settle debt — — — 1 Balance, end of period 1,174 1,086 1,174 1,086 Stock-based compensation expense was as follows: Three Months Ended Six Months Ended June 27, June 29, June 27, June 29, (In millions) Cost of sales $ 2 $ 2 $ 4 $ 3 Research and development 37 28 74 55 Marketing, general and administrative 21 15 41 28 Total $ 60 $ 45 $ 119 $ 86 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 27, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the three months ended June 27, 2020, the Company recorded an income tax provision of $4 million associated with foreign income taxes and withholding taxes. For the three months ended June 29, 2019, the Company recorded an income tax provision of $2 million, consisting primarily of foreign income taxes in profitable locations. For the six months ended June 27, 2020, the Company recorded an income tax provision of $10 million associated with foreign income taxes and withholding taxes. For the six months ended June 29, 2019, the Company recorded an income tax benefit of $11 million, consisting primarily of a $13 million credit to U.S. income taxes due to the completion of certain internal tax structuring and $2 million of foreign income taxes in profitable locations. As of June 27, 2020, substantially all the Company’s U.S. and foreign deferred tax assets, net of deferred tax liabilities, were subject to valuation allowances. After evaluating all available evidence, the Company determined that the valuation allowances should be maintained. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 27, 2020 | |
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; and • 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 stock-based compensation expense. The following table provides a summary of net revenue and operating income by segment: Three Months Ended Six Months Ended June 27, June 29, June 27, June 29, (In millions) Net revenue: Computing and Graphics $ 1,367 $ 940 $ 2,805 $ 1,771 Enterprise, Embedded and Semi-Custom 565 591 913 1,032 Total net revenue $ 1,932 $ 1,531 $ 3,718 $ 2,803 Operating income (loss): Computing and Graphics $ 200 $ 22 $ 462 $ 38 Enterprise, Embedded and Semi-Custom 33 89 7 157 All Other (1) (60) (52) (119) (98) Total operating income $ 173 $ 59 $ 350 $ 97 (1) For the three months ended June 27, 2020, All Other operating loss was related to stock-based compensation expense. All Other operating loss of $52 million for the three months ended June 29, 2019 consisted of $45 million stock-based compensation expense and $7 million contingent loss accrual on a legal matter. For the six months ended June 27, 2020, All Other operating loss was related to stock-based compensation expense. All Other operating loss of $98 million for the six months ended June 29, 2019 consisted of $86 million stock-based compensation expense and $12 million contingent loss accrual on a legal matter. |
Contingencies
Contingencies | 6 Months Ended |
Jun. 27, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies 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 and 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. On May 15, 2020, the Ninth Circuit affirmed the district court’s ruling dismissing the subset of claims currently at issue against the Company. 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. On May 14, 2020, at the request of Polaris, the Court dismissed all claims related to one of the two patents in suit in the Polaris case. On June 10, 2020, the Court granted AMD’s motions to stay the Polaris and Aquila cases pending the completion of inter partes review of each of the patents-in-suit in those cases by the Patent Trial and Appeals Board. 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. Other Legal Matters The Company is a defendant or plaintiff in various actions that arose in the normal course of business. With respect to these matters, based on the management’s current knowledge, the Company believes that the amount or range of reasonably possible loss, if any, will not, either individually or in the aggregate, have a material adverse effect on the Company’s financial position, results of operations, or cash flows. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 27, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation. The accompanying unaudited condensed consolidated financial statements of Advanced Micro Devices, Inc. and its subsidiaries (the Company or AMD) have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. The results of operations for the three and six months ended June 27, 2020 shown in this report are not necessarily indicative of results to be expected for the full year ending December 26, 2020 or any other future period. In the opinion of the Company’s management, the information contained herein reflects all adjustments necessary for a fair presentation of the Company’s results of operations, financial position, cash flows and stockholders’ equity. All such adjustments are of a normal, recurring nature. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended December 28, 2019. Certain prior period amounts have been reclassified to conform to current period presentation. |
Fiscal Period | The Company uses a 52 or 53 week fiscal year ending on the last Saturday in December. The three and six months ended June 27, 2020 and June 29, 2019 each consisted of 13 weeks and 26 weeks, respectively |
Recently Adopted and Issued Accounting Standards | Recently Adopted Accounting Standards Financial Instruments. In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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. The Company adopted this standard in the first quarter of 2020 using the modified retrospective adoption method. This standard did not have an impact on the condensed consolidated financial statements upon adoption. Recently Issued Accounting Standards 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 intra-period 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. This standard is effective for fiscal years beginning after December 15, 2020, with early adoption permitted. The Company will adopt this standard in the first quarter of 2021 and the adoption is not expected to have a material impact on the 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 condensed consolidated financial statements. |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Inventories | Inventories June 27, December 28, (In millions) Raw materials $ 102 $ 94 Work in process 936 691 Finished goods 286 197 Total inventories $ 1,324 $ 982 |
Property and Equipment, Net | Property and Equipment, net June 27, December 28, (In millions) Leasehold improvements $ 201 $ 203 Equipment 1,073 951 Construction in progress 148 114 Property and equipment, gross 1,422 1,268 Accumulated depreciation (837) (768) Total property and equipment, net $ 585 $ 500 |
Other Non-Current Assets | Other Non-Current Assets June 27, December 28, (In millions) Software technology and licenses, net $ 174 $ 210 Other 152 169 Total other non-current assets $ 326 $ 379 |
Accrued Liabilities | Accrued Liabilities June 27, December 28, (In millions) Accrued compensation and benefits $ 260 $ 285 Marketing programs and advertising expenses 603 454 Other 309 345 Total accrued liabilities $ 1,172 $ 1,084 |
Debt and Secured Revolving Fa_2
Debt and Secured Revolving Facility (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company’s total debt as of June 27, 2020 and December 28, 2019 consisted of the following: June 27, December 28, (In millions) 2.125% Convertible Senior Notes Due 2026 (2.125% Notes) $ 251 $ 251 7.50% Senior Notes Due 2022 (7.50% Notes) 312 312 Borrowing under Secured Revolving Facility 200 — Total debt (principal amount) 763 563 Unamortized debt discount for 2.125% Notes (69) (73) Unamortized debt issuance costs for 2.125% Notes (3) (3) Unamortized debt issuance costs for 7.50% Notes (1) (1) Total debt (net) 690 486 Less: short term debt (200) — Total long-term debt (net) $ 490 $ 486 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Financial Instruments Not Recorded at Fair Value | The Company carries its financial instruments at fair value with the exception of its long-term debt. The carrying amounts and estimated fair values of the Company’s long-term debt are as follows: June 27, 2020 December 28, 2019 Carrying Estimated Carrying Estimated (In millions) Long-term debt, net $ 490 $ 1,932 $ 486 $ 1,823 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The table below summarizes the changes in accumulated other comprehensive loss for the three and six months ended June 27, 2020 and June 29, 2019: Three Months Ended Six Months Ended June 27, June 29, June 27, June 29, Gains (losses) on cash flow hedges: (In millions) Beginning balance $ (14) $ (1) $ — $ (8) Net unrealized gains (losses) arising during the period 5 (1) (12) 4 Net losses reclassified into income during the period 5 2 8 4 Total other comprehensive income (loss) 10 1 (4) 8 Ending balance $ (4) $ — $ (4) $ — |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Earnings Per Share [Abstract] | |
Components of Basic and Diluted Earnings (Loss) Per Share | The following table sets forth the components of basic and diluted earnings per share: Three Months Ended Six Months Ended June 27, June 29, June 27, June 29, (In millions, except per share amounts) Numerator Net income for basic earnings per share $ 157 $ 35 $ 319 $ 51 Effect of potentially dilutive shares: Interest expense related to the 2.125% Notes 3 — 7 — Net income for diluted earnings per share $ 160 $ 35 $ 326 $ 51 Denominator Basic weighted average shares 1,174 1,084 1,172 1,064 Effect of potentially dilutive shares: Employee equity plans and warrants 22 25 22 38 2.125% Notes 31 — 31 — Diluted weighted average shares 1,227 1,109 1,225 1,102 Earnings per share: Basic $ 0.13 $ 0.03 $ 0.27 $ 0.05 Diluted $ 0.13 $ 0.03 $ 0.27 $ 0.05 |
Common Stock and Employee Equ_2
Common Stock and Employee Equity Plans (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Equity [Abstract] | |
Schedule of Common Shares Outstanding | Shares of common stock outstanding were as follows: Three Months Ended Six Months Ended June 27, June 29, June 27, June 29, (In millions) Balance, beginning of period 1,171 1,082 1,170 1,005 Common stock issued under employee equity plans 3 4 4 5 Issuance of common stock upon warrant exercise — — — 75 Issuance of treasury stock to partially settle debt — — — 1 Balance, end of period 1,174 1,086 1,174 1,086 |
Share-based Payment Arrangement, Expensed and Capitalized, Amount | Stock-based compensation expense was as follows: Three Months Ended Six Months Ended June 27, June 29, June 27, June 29, (In millions) Cost of sales $ 2 $ 2 $ 4 $ 3 Research and development 37 28 74 55 Marketing, general and administrative 21 15 41 28 Total $ 60 $ 45 $ 119 $ 86 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Segment Reporting [Abstract] | |
Summary of Net Revenue and Operating Income (Loss) by Segment | The following table provides a summary of net revenue and operating income by segment: Three Months Ended Six Months Ended June 27, June 29, June 27, June 29, (In millions) Net revenue: Computing and Graphics $ 1,367 $ 940 $ 2,805 $ 1,771 Enterprise, Embedded and Semi-Custom 565 591 913 1,032 Total net revenue $ 1,932 $ 1,531 $ 3,718 $ 2,803 Operating income (loss): Computing and Graphics $ 200 $ 22 $ 462 $ 38 Enterprise, Embedded and Semi-Custom 33 89 7 157 All Other (1) (60) (52) (119) (98) Total operating income $ 173 $ 59 $ 350 $ 97 (1) For the three months ended June 27, 2020, All Other operating loss was related to stock-based compensation expense. All Other operating loss of $52 million for the three months ended June 29, 2019 consisted of $45 million stock-based compensation expense and $7 million contingent loss accrual on a legal matter. For the six months ended June 27, 2020, All Other operating loss was related to stock-based compensation expense. All Other operating loss of $98 million for the six months ended June 29, 2019 consisted of $86 million stock-based compensation expense and $12 million contingent loss accrual on a legal matter. |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Jun. 27, 2020 | Dec. 28, 2019 |
Accounts Receivable, Net | ||
Unbilled contracts receivable | $ 222 | $ 197 |
Inventories | ||
Raw materials | 102 | 94 |
Work in process | 936 | 691 |
Finished goods | 286 | 197 |
Inventories, Total | 1,324 | 982 |
Property and Equipment, Net | ||
Leasehold improvements | 201 | 203 |
Equipment | 1,073 | 951 |
Construction in progress | 148 | 114 |
Property and equipment, gross | 1,422 | 1,268 |
Accumulated depreciation | (837) | (768) |
Total property and equipment, net | 585 | 500 |
Other Assets | ||
Software technology and licenses, net | 174 | 210 |
Other | 152 | 169 |
Total other non-current assets | 326 | 379 |
Accrued Liabilities | ||
Accrued compensation and benefits | 260 | 285 |
Marketing programs and advertising expenses | 603 | 454 |
Other | 309 | 345 |
Total accrued liabilities | $ 1,172 | $ 1,084 |
Supplemental Balance Sheet In_4
Supplemental Balance Sheet Information (Remaining Performance Obligations) (Details) $ in Millions | Jun. 27, 2020USD ($) |
Balance Sheet Related Disclosures [Abstract] | |
Revenue allocated to remaining performance obligations that are unsatisfied or partially unsatisfied | $ 417 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue allocated to remaining performance obligations that are unsatisfied or partially unsatisfied | 417 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-06-28 | |
Balance Sheet Related Disclosures [Abstract] | |
Revenue allocated to remaining performance obligations that are unsatisfied or partially unsatisfied | $ 180 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied, expected timing | 12 months |
Revenue allocated to remaining performance obligations that are unsatisfied or partially unsatisfied | $ 180 |
Equity Joint Ventures (Details)
Equity Joint Ventures (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 27, 2020USD ($)joint_venture | Jun. 29, 2019USD ($) | Jun. 27, 2020USD ($)joint_venture | Jun. 29, 2019USD ($) | Dec. 28, 2019USD ($) | Feb. 29, 2016USD ($) | |
Investment Holdings [Line Items] | ||||||
Carrying value of investment | $ 59 | $ 59 | $ 58 | |||
Payables to related parties | 192 | 192 | 213 | |||
Receivables from related parties | $ 10 | $ 10 | 20 | |||
ATMP JV | Joint Venture | ||||||
Investment Holdings [Line Items] | ||||||
Ownership percentage | 15.00% | 15.00% | ||||
Number of joint ventures | joint_venture | 2 | 2 | ||||
Carrying value of investment | $ 59 | $ 59 | 58 | |||
Purchases from related party | 204 | $ 172 | 355 | $ 304 | ||
Payables to related parties | 192 | 192 | 213 | |||
Revenue from related parties | 8 | $ 17 | 15 | 43 | ||
Receivables from related parties | $ 7 | $ 7 | 7 | |||
THATIC JV | Joint Venture | ||||||
Investment Holdings [Line Items] | ||||||
Number of joint ventures | joint_venture | 2 | 2 | ||||
Carrying value of investment | $ 0 | $ 0 | 0 | |||
Receivables from related parties | $ 3 | $ 3 | $ 13 | |||
Licensing gain | THATIC JV | ||||||
Investment Holdings [Line Items] | ||||||
Estimated license fees expected to be earned over several years pursuant to a licensing agreement | $ 293 | |||||
Operating income | $ 60 |
Debt and Secured Revolving Fa_3
Debt and Secured Revolving Facility (Details) - USD ($) | Jun. 27, 2020 | Dec. 28, 2019 | Sep. 30, 2016 | Aug. 15, 2012 |
Debt Instrument [Line Items] | ||||
Total debt (principal amount) | $ 763,000,000 | $ 563,000,000 | ||
Total debt (net) | 690,000,000 | 486,000,000 | ||
Less: short term debt | (200,000,000) | 0 | ||
Long-term debt, net | 490,000,000 | 486,000,000 | ||
2.125% Convertible Senior Notes due 2026 | Convertible Debt | ||||
Debt Instrument [Line Items] | ||||
Total debt (principal amount) | 251,000,000 | 251,000,000 | ||
Unamortized debt discount | (69,000,000) | (73,000,000) | ||
Unamortized debt issuance costs | $ (3,000,000) | $ (3,000,000) | ||
Stated interest rate | 2.125% | 2.125% | 2.125% | |
7.50% Senior Notes due 2022 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Total debt (principal amount) | $ 312,000,000 | $ 312,000,000 | ||
Unamortized debt issuance costs | $ (1,000,000) | (1,000,000) | ||
Stated interest rate | 7.50% | 7.50% | ||
Secured Revolving Credit Facility | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Total debt (principal amount) | $ 200,000,000 | $ 0 |
Debt and Secured Revolving Fa_4
Debt and Secured Revolving Facility (Narrative) (Details) | Jul. 06, 2020USD ($) | Apr. 06, 2020USD ($) | Jun. 07, 2019USD ($) | Sep. 30, 2016USD ($)day$ / shares | Jun. 27, 2020USD ($)$ / shares | Jun. 29, 2019USD ($) | Dec. 28, 2019USD ($) | Aug. 15, 2012USD ($) |
Debt Instrument [Line Items] | ||||||||
Total debt (principal amount) | $ 763,000,000 | $ 563,000,000 | ||||||
Proceeds from short-term debt borrowing | 200,000,000 | $ 0 | ||||||
Repayment of debt | $ 0 | $ 234,000,000 | ||||||
2.125% Convertible Senior Notes due 2026 | Convertible Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 2.125% | 2.125% | 2.125% | |||||
Principal amount | $ 805,000,000 | |||||||
Threshold trading days | day | 20 | |||||||
Threshold consecutive trading days | day | 30 | |||||||
Threshold percentage of conversion price | 130.00% | |||||||
Conversion price (in usd per share) | $ / shares | $ 8 | $ 8 | ||||||
Effective interest rate | 8.00% | |||||||
Carrying amount of the equity component, net | $ 95,000,000 | $ 95,000,000 | ||||||
Total debt (principal amount) | $ 251,000,000 | 251,000,000 | ||||||
7.50% Senior Notes due 2022 | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 7.50% | 7.50% | ||||||
Principal amount | $ 500,000,000 | |||||||
Total debt (principal amount) | $ 312,000,000 | $ 312,000,000 | ||||||
Secured Revolving Credit Facility | Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Effective interest rate | 2.37% | |||||||
Maximum borrowing capacity | $ 500,000,000 | |||||||
Debt Instrument, Term | 5 years | |||||||
Debt Instrument, Available Borrowings Reduction, Asset Sales Threshold | $ 250,000,000 | |||||||
Proceeds from short-term debt borrowing | $ 200,000,000 | |||||||
Secured Revolving Credit Facility | Revolving Credit Facility | Subsequent Event | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayment of debt | $ 200,000,000 | |||||||
Secured Revolving Credit Facility | Swingline Subfacility | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | 50,000,000 | |||||||
Secured Revolving Credit Facility | Letter of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 75,000,000 | |||||||
Letters of credit outstanding, amount | $ 13,000,000 |
Financial Instruments (Cash, Ca
Financial Instruments (Cash, Cash Equivalents, and Marketable Securities Fair Value Measurements) (Details) - USD ($) $ in Millions | Jun. 27, 2020 | Dec. 28, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | $ 0 | $ 37 |
Commercial paper | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Fair Value Asset (Liability) | $ 37 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | Jun. 27, 2020 | Dec. 28, 2019 |
Mutual Fund | Level 1 | ||
Other Fair Value Disclosure [Line Items] | ||
Other assets | $ 36 | $ 30 |
Financial Instruments (Schedule
Financial Instruments (Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments not Recorded at Fair Value) (Details) - USD ($) $ / shares in Units, $ in Millions | Jun. 27, 2020 | Dec. 28, 2019 | Sep. 30, 2016 |
Convertible Debt | 2.125% Convertible Senior Notes due 2026 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Stated interest rate | 2.125% | 2.125% | 2.125% |
Share price (in usd per share) | $ 50.10 | ||
Conversion price (in usd per share) | $ 8 | $ 8 | |
Carrying Amount | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, net | $ 490 | $ 486 | |
Estimated Fair Value | Level 2 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, net | $ 1,932 | $ 1,823 |
Financial Instruments (Foreign
Financial Instruments (Foreign Currency Derivatives) (Details) - Foreign Currency Forward Contracts - USD ($) $ in Millions | 6 Months Ended | |
Jun. 27, 2020 | Dec. 28, 2019 | |
Derivative [Line Items] | ||
Derivative, notional amount | $ 599 | $ 739 |
Cash Flow Hedging | ||
Derivative [Line Items] | ||
Derivative, term of contract | 12 months | |
Contracts not designated as hedging instruments: | ||
Derivative [Line Items] | ||
Derivative, term of contract | 3 months |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | $ 2,827 | |||
Ending balance | $ 3,305 | $ 1,901 | 3,305 | $ 1,901 |
AOCI Attributable to Parent | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | (14) | (1) | 0 | (8) |
Total other comprehensive income (loss) | 10 | 1 | (4) | 8 |
Ending balance | (4) | 0 | (4) | 0 |
Net unrealized gains (losses) arising during the period | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net unrealized gains (losses) arising during the period | 5 | (1) | (12) | 4 |
Net losses reclassified into income during the period | 5 | 2 | 8 | 4 |
Total other comprehensive income (loss) | $ 10 | $ 1 | $ (4) | $ 8 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Numerator | ||||
Net income for basic earnings per share | $ 157 | $ 35 | $ 319 | $ 51 |
Effect of potentially dilutive shares: | ||||
Interest expense related to the 2.125% Notes | 3 | 0 | 7 | 0 |
Net income for diluted earnings per share | $ 160 | $ 35 | $ 326 | $ 51 |
Denominator | ||||
Basic weighted-average shares (in shares) | 1,174 | 1,084 | 1,172 | 1,064 |
Effect of potentially dilutive shares: | ||||
Employee equity plans and warrants (in shares) | 22 | 25 | 22 | 38 |
2.125% Notes (in shares) | 31 | 0 | 31 | 0 |
Diluted weighted-average shares (in shares) | 1,227 | 1,109 | 1,225 | 1,102 |
Earnings Per Share, Basic and Diluted [Abstract] | ||||
Basic (in usd per share) | $ 0.13 | $ 0.03 | $ 0.27 | $ 0.05 |
Diluted (in usd per share) | $ 0.13 | $ 0.03 | $ 0.27 | $ 0.05 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares | 3 Months Ended | 6 Months Ended |
Jun. 29, 2019 | Jun. 29, 2019 | |
Convertible Debt Securities [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive shares (in shares) | 102,000,000 | 103,000,000 |
Common Stock and Employee Equ_3
Common Stock and Employee Equity Plans (Schedule of Common Shares Outstanding) (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance, beginning of period (in shares) | 1,175,000,000 | |||
Balance, end of period (in shares) | 1,179,000,000 | 1,179,000,000 | ||
Common stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance, beginning of period (in shares) | 1,171,000,000 | 1,082,000,000 | 1,170,000,000 | 1,005,000,000 |
Common stock issued under employee equity plans (in shares) | 3,000,000 | 4,000,000 | 4,000,000 | 5,000,000 |
Issuance of common stock upon warrant exercise (in shares) | 0 | 0 | 0 | 75,000,000 |
Balance, end of period (in shares) | 1,174,000,000 | 1,086,000,000 | 1,174,000,000 | 1,086,000,000 |
Treasury stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of treasury stock to partially settle debt (in shares) | 0 | 0 | 0 | 1,000,000 |
Common Stock and Employee Equ_4
Common Stock and Employee Equity Plans (Schedule of Stock-based Compensation Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 60 | $ 45 | $ 119 | $ 86 |
Cost of sales | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 2 | 2 | 4 | 3 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 37 | 28 | 74 | 55 |
Marketing, general and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 21 | $ 15 | $ 41 | $ 28 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Income tax provision (benefit) | $ 4 | $ 2 | $ 10 | $ (11) |
Unrecognized tax benefits | $ 79 | $ 79 | ||
U.S. Tax Credit | 13 | |||
Foreign Tax Expense | $ 2 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020USD ($) | Jun. 29, 2019USD ($) | Jun. 27, 2020USD ($)segment | Jun. 29, 2019USD ($) | |
Segment Reporting [Abstract] | ||||
Number of reportable segments | segment | 2 | |||
Segment Reporting Information [Line Items] | ||||
Total net revenue | $ 1,932 | $ 1,531 | $ 3,718 | $ 2,803 |
Total operating income (loss) | 173 | 59 | 350 | 97 |
Share-based compensation expense | 60 | 45 | 119 | 86 |
Computing and Graphics | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenue | 1,367 | 940 | 2,805 | 1,771 |
Enterprise, Embedded and Semi-Custom | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenue | 565 | 591 | 913 | 1,032 |
Operating Segments | Computing and Graphics | ||||
Segment Reporting Information [Line Items] | ||||
Total operating income (loss) | 200 | 22 | 462 | 38 |
Operating Segments | Enterprise, Embedded and Semi-Custom | ||||
Segment Reporting Information [Line Items] | ||||
Total operating income (loss) | 33 | 89 | 7 | 157 |
All Other | ||||
Segment Reporting Information [Line Items] | ||||
Total operating income (loss) | $ (60) | (52) | $ (119) | (98) |
Share-based compensation expense | 45 | 86 | ||
Loss contingency | $ 7 | $ 12 |