(1) Computing Solutions segment primarily includes x86 microprocessors, as
standalone devices or as incorporated as an accelerated processing unit
(APU), chipsets, embedded processors and dense servers.
(2) Graphics and Visual Solutions segment primarily includes graphics
processing units (GPU), including professional graphics, semi-custom
System-on-Chip (SOC) products, development services and technology for
game consoles.
(3) All Other category primarily includes certain expenses and credits that
are not allocated to any of the operating segments. Also included in
this category are amortization of acquired intangible assets and
employee stock-based compensation expense. In addition, the Company
also included the following adjustments for the indicated periods: for
the first quarter of 2014, the Company included an adjustment for
workforce rebalancing severance charges and for the second quarter of
2013 and six months ending June 29, 2013, the Company included an
adjustment for net restructuring and other special charges. The Company
also reports the results of former businesses in the All Other category
because the operating results were not material.
(4) Reconciliation of GAAP operating income (loss) to Adjusted EBITDA*
Three Months Ended Six Months Ended
---------------------------- ------------------
Jun. 28, Mar. 29, Jun. 29, Jun. 28, Jun. 29,
2014 2014 2013 2014 2013
-------- -------- -------- -------- --------
GAAP operating income
(loss) $ 63 $ 49 $ (29) $ 112 $ (127)
Workforce
rebalancing - -
severance charges - 14 14
Depreciation and
amortization 49 50 54 99 116
Employee stock-based
compensation
expense 21 23 20 44 44
Amortization of
acquired intangible
assets 4 3 4 7
9
Restructuring and
other special 5 52
charges, net - - -
-------- -------- -------- -------- --------
Adjusted EBITDA $ 137 $ 139 $ 54 $ 276 $ 94
======== ======== ======== ======== ========
(5) Non-GAAP free cash flow reconciliation**
Three Months Ended Six Months Ended
---------------------------- ------------------
Jun. 28, Mar. 29, Jun. 29, Jun. 28, Jun. 29,
2014 2014 2013 2014 2013
-------- -------- -------- -------- --------
GAAP net cash used in
operating activities $ (28) $ (204) $ (35) $ (232) $ (190)
Purchases of
property, plant and
equipment (23) (21) (28) (44) (48)
-------- -------- -------- -------- --------
Non-GAAP free cash
flow $ (51) $ (225) $ (63) $ (276) $ (238)
======== ======== ======== ======== ========
* The Company presents Adjusted EBITDA as a supplemental measure of its
performance. Adjusted EBITDA for the Company is determined by adjusting
operating income (loss) for depreciation and amortization, employee
stock-based compensation expense and amortization of acquired
intangible assets. In addition, the Company also included the following
adjustments for the indicated periods: for the first quarter of 2014,
the Company included an adjustment for workforce rebalancing severance
charges and for second quarter of 2013 and six months ending June 29,
2013, the Company included an adjustment for net restructuring and
other special charges. The Company calculates and communicates Adjusted
EBITDA in the earnings press release because the Company's management
believes it is of importance to investors and lenders in relation to
its overall capital structure and its ability to borrow additional
funds. In addition, the Company presents Adjusted EBITDA because it
believes this measure assists investors in comparing its performance
across reporting periods on a consistent basis by excluding items that
the Company does not believe are indicative of its core operating
performance. The Company's calculation of Adjusted EBITDA may or may
not be consistent with the calculation of this measure by other
companies in the same industry. Investors should not view Adjusted
EBITDA as an alternative to the GAAP operating measure of operating
income (loss) or GAAP liquidity measures of cash flows from operating,
investing and financing activities. In addition, Adjusted EBITDA does
not take into account changes in certain assets and liabilities as well
as interest and income taxes that can affect cash flows.
** The Company also presents non-GAAP free cash flow in the earnings
press release as a supplemental measure of its performance. Non-GAAP
free cash flow is determined by adjusting GAAP net cash used in
operating activities for capital expenditures. The Company calculates
and communicates non-GAAP free cash flow in the financial earnings
press release because the Company's management believes it is of
importance to investors to understand the nature of these cash flows.
The Company's calculation of non-GAAP free cash flow may or may not be
consistent with the calculation of this measure by other companies in
the same industry. Investors should not view non-GAAP free cash flow as
an alternative to GAAP liquidity measures of cash flows from operating
activities. The Company has provided reconciliations within the
earnings press release of these non-GAAP financial measures to the most
directly comparable GAAP financial measures.
AMD Reports 2014 Second Quarter Results
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