2017 Q4 Form 10-K Financial Statement

#000000248818000042 Filed on February 27, 2018

View on sec.gov

Income Statement

Concept 2017 Q4 2017 2016 Q4
Revenue $1.480B $5.329B $1.106B
YoY Change 33.82% 24.74% 15.45%
Cost Of Revenue $888.0M $3.466B $755.0M
YoY Change 17.62% 4.52% 11.85%
Gross Profit $452.0M $1.787B $351.0M
YoY Change 28.77% 78.17% 24.03%
Gross Profit Margin 30.54% 33.53% 31.74%
Selling, General & Admin $134.0M $516.0M $121.0M
YoY Change 10.74% 10.73% 11.01%
% of Gross Profit 29.65% 28.88% 34.47%
Research & Development $320.0M $1.196B $264.0M
YoY Change 21.21% 18.65% 15.28%
% of Gross Profit 70.8% 66.93% 75.21%
Depreciation & Amortization $39.00M $144.0M $34.00M
YoY Change 14.71% 8.27% 0.0%
% of Gross Profit 8.63% 8.06% 9.69%
Operating Expenses $454.0M $1.712B $385.0M
YoY Change 17.92% 16.15% 13.91%
Operating Profit -$2.000M $127.0M -$34.00M
YoY Change -94.12% -134.05% -30.61%
Interest Expense $31.00M $126.0M -$34.00M
YoY Change -191.18% -19.23% -182.93%
% of Operating Profit 99.21%
Other Income/Expense, Net $2.000M -$9.000M
YoY Change -111.25%
Pretax Income -$31.00M -$15.00M -$44.00M
YoY Change -29.55% -96.73% -52.17%
Income Tax -$12.00M $18.00M $5.000M
% Of Pretax Income
Net Earnings -$19.00M -$33.00M -$51.00M
YoY Change -62.75% -93.37% -50.0%
Net Earnings / Revenue -1.28% -0.62% -4.61%
Basic Earnings Per Share -$0.02 -$0.03
Diluted Earnings Per Share -$0.02 -$0.03 -$54.43K
COMMON SHARES
Basic Shares Outstanding 965.0M shares 952.0M shares 926.9M shares
Diluted Shares Outstanding 965.0M shares 952.0M shares

Balance Sheet

Concept 2017 Q4 2017 2016 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.185B $1.185B $1.264B
YoY Change -6.25% -6.25% 61.02%
Cash & Equivalents $1.185B $1.185B $1.264B
Short-Term Investments
Other Short-Term Assets $191.0M $301.0M $115.0M
YoY Change 66.09% 47.55% -53.63%
Inventory $694.0M $694.0M $691.0M
Prepaid Expenses $77.00M $63.00M
Receivables $454.0M $454.0M $372.0M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $2.634B $2.634B $2.530B
YoY Change 4.11% 4.11% 9.05%
LONG-TERM ASSETS
Property, Plant & Equipment $261.0M $261.0M $164.0M
YoY Change 59.15% 59.15% -12.77%
Goodwill $289.0M $289.0M
YoY Change 0.0% 3.96%
Intangibles
YoY Change
Long-Term Investments $58.00M $58.00M $59.00M
YoY Change -1.69% -1.69%
Other Assets $310.0M $71.00M $279.0M
YoY Change 11.11% 51.06% -6.38%
Total Long-Term Assets $918.0M $918.0M $791.0M
YoY Change 16.06% 16.06% 3.53%
TOTAL ASSETS
Total Short-Term Assets $2.634B $2.634B $2.530B
Total Long-Term Assets $918.0M $918.0M $791.0M
Total Assets $3.552B $3.552B $3.321B
YoY Change 6.96% 6.96% 7.68%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $384.0M $796.0M $440.0M
YoY Change -12.73% -3.28% 57.71%
Accrued Expenses $555.0M $369.0M $400.0M
YoY Change 38.75% 39.25% -15.25%
Deferred Revenue $85.00M
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change -100.0%
Long-Term Debt Due $70.00M $70.00M $0.00
YoY Change -100.0%
Total Short-Term Liabilities $1.513B $1.513B $1.346B
YoY Change 12.41% 12.41% -4.06%
LONG-TERM LIABILITIES
Long-Term Debt $1.325B $1.325B $1.435B
YoY Change -7.67% -7.67% -28.5%
Other Long-Term Liabilities $118.0M $118.0M $124.0M
YoY Change -4.84% -4.84% 44.19%
Total Long-Term Liabilities $1.443B $1.443B $1.559B
YoY Change -7.44% -7.44% -25.51%
TOTAL LIABILITIES
Total Short-Term Liabilities $1.513B $1.513B $1.346B
Total Long-Term Liabilities $1.443B $1.443B $1.559B
Total Liabilities $2.956B $2.956B $2.905B
YoY Change 1.76% 1.76% -16.91%
SHAREHOLDERS EQUITY
Retained Earnings -$7.775B -$7.742B
YoY Change 0.43% 5.97%
Common Stock $8.473B $8.343B
YoY Change 1.56% 18.76%
Preferred Stock
YoY Change
Treasury Stock (at cost) $108.0M $119.0M
YoY Change -9.24% -3.25%
Treasury Stock Shares 12.00M shares 14.00M shares
Shareholders Equity $596.0M $596.0M $477.0M
YoY Change
Total Liabilities & Shareholders Equity $3.552B $3.552B $3.321B
YoY Change 6.96% 6.96% 7.68%

Cashflow Statement

Concept 2017 Q4 2017 2016 Q4
OPERATING ACTIVITIES
Net Income -$19.00M -$33.00M -$51.00M
YoY Change -62.75% -93.37% -50.0%
Depreciation, Depletion And Amortization $39.00M $144.0M $34.00M
YoY Change 14.71% 8.27% 0.0%
Cash From Operating Activities $324.0M $12.00M $188.0M
YoY Change 72.34% -85.19% 218.64%
INVESTING ACTIVITIES
Capital Expenditures -$44.00M $113.0M -$21.00M
YoY Change 109.52% 46.75% -34.38%
Acquisitions
YoY Change
Other Investing Activities $61.00M $1.000M -$5.000M
YoY Change -1320.0% -150.0%
Cash From Investing Activities $17.00M -$54.00M -$26.00M
YoY Change -165.38% -119.49% -18.75%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $0.00
YoY Change -100.0%
Debt Paid & Issued, Net $110.0M
YoY Change
Cash From Financing Activities -34.00M -$33.00M -156.0M
YoY Change -78.21% -127.05% -5300.0%
NET CHANGE
Cash From Operating Activities 324.0M $12.00M 188.0M
Cash From Investing Activities 17.00M -$54.00M -26.00M
Cash From Financing Activities -34.00M -$33.00M -156.0M
Net Change In Cash 307.0M -$75.00M 6.000M
YoY Change 5016.67% -115.63% -80.0%
FREE CASH FLOW
Cash From Operating Activities $324.0M $12.00M $188.0M
Capital Expenditures -$44.00M $113.0M -$21.00M
Free Cash Flow $368.0M -$101.0M $209.0M
YoY Change 76.08% -2625.0% 129.67%

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CY2017Q4 us-gaap Long Term Debt Maturities Repayments Of Principal In Year Five
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us-gaap Net Income Loss
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us-gaap Operating Income Loss
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28000000 USD
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CY2017 us-gaap Other Comprehensive Income Loss Available For Sale Securities Adjustment Net Of Tax
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CY2017 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci On Derivatives Tax
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110000000 USD
CY2015 us-gaap Research And Development Expense
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259000000 USD
us-gaap Research And Development Expense
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CY2017Q4 us-gaap Research And Development Expense
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us-gaap Sales Revenue Net
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CY2017Q4 us-gaap Sales Revenue Net
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CY2017 us-gaap Sales Revenue Net
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us-gaap Selling General And Administrative Expense
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121000000 USD
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132000000 USD
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133000000 USD
CY2017 us-gaap Selling General And Administrative Expense
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511000000 USD
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63000000 USD
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P3Y
CY2017Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Number Of Shares Available For Grant
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49000000 shares
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CY2017 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Expiration Period
SharebasedCompensationArrangementBySharebasedPaymentAwardExpirationPeriod
P10Y
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CY2017 us-gaap Stock Issued1
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667000000 USD
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CY2016 us-gaap Stock Issued During Period Value Share Based Compensation
StockIssuedDuringPeriodValueShareBasedCompensation
16000000 USD
CY2017 us-gaap Stock Issued During Period Value Share Based Compensation
StockIssuedDuringPeriodValueShareBasedCompensation
7000000 USD
CY2016 us-gaap Stock Issued During Period Value Treasury Stock Reissued
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8000000 USD
CY2017 us-gaap Stock Issued During Period Value Treasury Stock Reissued
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CY2017Q4 us-gaap Stockholders Equity
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CY2017Q4 us-gaap Treasury Stock Shares
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CY2017Q4 us-gaap Treasury Stock Value
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38000000 USD
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49000000 USD
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1000000 USD
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3000000 USD
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939000000 shares
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CY2017 us-gaap Fiscal Period
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Fiscal Year</font><font style="font-family:inherit;font-size:10pt;">.&#160;The Company uses a 52 or 53 week fiscal year ending on the last Saturday in December. Fiscal </font><font style="font-family:inherit;font-size:10pt;">2017</font><font style="font-family:inherit;font-size:10pt;">, </font><font style="font-family:inherit;font-size:10pt;">2016</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">2015</font><font style="font-family:inherit;font-size:10pt;"> ended </font><font style="font-family:inherit;font-size:10pt;">December&#160;30, 2017</font><font style="font-family:inherit;font-size:10pt;">, </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2016</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">December&#160;26, 2015</font><font style="font-family:inherit;font-size:10pt;">, respectively. Fiscal 2017, 2016 and 2015 consisted of 52, 53 and 52 weeks, respectively.</font></div></div>
CY2017 us-gaap Loss Contingency Disclosures
LossContingencyDisclosures
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:18px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Contingencies</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Hatamian Securities Litigation</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On January 15, 2014, a class action lawsuit captioned&#160;</font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Hatamian v. AMD, et al.</font><font style="font-family:inherit;font-size:10pt;">, C.A. No. 3:14-cv-00226 (the Hatamian Lawsuit) was filed against the Company in the United States District Court for the Northern District of California. The complaint purports to assert claims against the Company and certain individual officers for alleged violations of Section 10(b) of the Securities Exchange Act of 1934, as amended (the Exchange Act), and Rule 10b-5 of the Exchange Act. The plaintiffs seek to represent a proposed class of all persons who purchased or otherwise acquired our common stock during the period April 4, 2011 through October 18, 2012. The complaint seeks damages allegedly caused by alleged materially misleading statements and/or material omissions by the Company and the individual officers regarding its 32nm technology and &#8220;Llano&#8221; product, which statements and omissions, the plaintiffs claim, allegedly operated to artificially inflate the price paid for the Company&#8217;s common stock during the period. The complaint seeks unspecified compensatory damages, attorneys&#8217; fees and costs. On July 7, 2014, the Company filed a motion to dismiss plaintiffs&#8217; claims. On March 31, 2015, the Court denied the motion to dismiss. On May 14, 2015, the Company filed its answer to plaintiffs&#8217; corrected amended complaint. On September 4, 2015, plaintiffs filed their motion for class certification, and on March 16, 2016, the Court granted plaintiffs' motion. A court-ordered mediation held in January 2016 did not result in a settlement of the lawsuit. The discovery process was concluded. The plaintiffs and defendants filed cross-motions for summary judgment, and briefing on those motions was completed in July 2017. On October 9, 2017, the parties signed a definitive settlement agreement resolving this matter and submitted it to the Court for approval. Under the terms of this agreement, the settlement will be funded entirely by certain of the Company's insurance carriers and the defendants will continue to deny any liability or wrongdoing. The final settlement hearing is scheduled for February 27, 2018.</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">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.</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Shareholder Derivative Lawsuit</font><font style="font-family:inherit;font-size:10pt;"> </font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On March 20, 2014, a purported shareholder derivative lawsuit captioned </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Wessels v. Read, et al.</font><font style="font-family:inherit;font-size:10pt;">, Case No. 1:14-cv-262486 (Wessels) was filed against the Company (as a nominal defendant only) and certain of the Company&#8217;s 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 &#8220;Llano&#8221; product, which statements and omissions, the plaintiffs claim, allegedly operated to artificially inflate the price paid for the Company&#8217;s common stock during the period. On April 27, 2015, a similar purported shareholder derivative lawsuit captioned </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Christopher Hamilton and David Hamilton v. Barnes, et al.</font><font style="font-family:inherit;font-size:10pt;">, Case No. 5:15-cv-01890 (Hamilton) was filed against the Company (as a nominal defendant only) and certain of the Company&#8217;s directors and officers in the United States District Court for the Northern District of California. The case was transferred to the judge handling the Hatamian Lawsuit and is now Case No. 4:15-cv-01890. </font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On September 29, 2015, a similar purported shareholder derivative lawsuit captioned </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Jake Ha v Caldwell, et al., </font><font style="font-family:inherit;font-size:10pt;">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 shareholder vote on AMD&#8217;s 2015 proxy. The case was transferred to the judge handling the Hatamian Lawsuit and is now Case No. 4:15-cv-04485. The Wessels, Hamilton, and Ha shareholder derivative lawsuits were stayed pending resolution of the Hatamian Lawsuit. On January 30, 2018, the Wessels and Hamilton plaintiffs amended their complaints. On February 2, 2018, the Ha plaintiff filed his amended complaint. On February 22, 2018, the Company filed motions to dismiss the Hamilton and Ha plaintiffs&#8217; amended complaints.</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">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.</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Dickey Litigation</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On October 26, 2015, a putative class action complaint captioned&#160;</font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Dickey et al. v. AMD</font><font style="font-family:inherit;font-size:10pt;">, No. 15-cv-04922&#160;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 &#8220;Bulldozer&#8221; 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. Discovery is underway. The putative class definition does not encompass the Company's Ryzen</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">TM</sup></font><font style="font-family:inherit;font-size:10pt;"> or EPYC</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">TM</sup></font><font style="font-family:inherit;font-size:10pt;"> processors.</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">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.</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Kim Securities Litigation</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On January&#160;16, 2018, a putative class action lawsuit captioned </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Kim et al. v. AMD, et al.</font><font style="font-family:inherit;font-size:10pt;">, Case No.&#160;3:18-cv-00321 was filed against the Company in the United States District Court for the Northern District of California.&#160;The complaint purports to assert claims against the Company and certain individual officers for alleged violations of Sections 10(b) and 20(a) of the Exchange Act, and Rule&#160;10b-5 of the Exchange Act. The plaintiff seeks to represent a proposed class of all persons who purchased or otherwise acquired the Company's common stock during the period February 21, 2017 through January 11, 2018.&#160;The complaint seeks damages allegedly caused by alleged materially misleading statements and/or material omissions by the Company and the individual officers regarding a security vulnerability (Spectre), which statements and omissions, the plaintiff claims, allegedly caused the Company's common stock price to be artificially inflated during the purported class period.&#160;The complaint seeks unspecified compensatory damages, attorneys&#8217; fees and costs.</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">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.</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Hauck Litigation</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On January 19, 2018, a putative class action complaint captioned </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Diana Hauck et al. v. AMD, Inc.,</font><font style="font-family:inherit;font-size:10pt;"> Case No. 5:18-cv-0047 was filed against the Company in the United States District Court for the Northern District of California. The plaintiff alleges that the Company misled consumers in connection with the marketing of AMD processors. &#160;Specifically, the plaintiff alleges that the Company's processors cannot perform at their advertised processing speeds without exposing consumers to the Spectre security vulnerability. The plaintiff seeks to obtain damages under several causes of action for a nationwide class of consumers who allegedly were misled into purchasing or leasing AMD processors (and devices containing AMD processors), as well as attorneys&#8217; fees, punitive damages, and restitution.</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">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.</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Speck Litigation</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On February 4, 2018, a putative class action complaint captioned </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Brian Speck et al. v. AMD, Inc.</font><font style="font-family:inherit;font-size:10pt;">, Case No. 5:18-cv-0744 was filed against the Company in the United States District Court for the Northern District of California. The plaintiff alleges that the Company misled consumers in connection with the design and marketing of AMD processors.&#160; Specifically, the plaintiff alleges that the Company's processors are subject to the Spectre security vulnerability, and that any "patches" to remedy this security vulnerability will result in degradation of processor performance. The plaintiff seeks to obtain damages under several causes of action for a nationwide class of consumers and a subclass of Ohio residents who allegedly were misled into purchasing AMD processors (and devices containing AMD processors), as well as attorneys' fees, equitable relief, and restitution.</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">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.</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Barnes and Caskey-Medina Litigation</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On February 9, 2018, a putative class action complaint captioned </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Nathan Barnes and Jonathan Caskey-Medina, et al. v. AMD, Inc.</font><font style="font-family:inherit;font-size:10pt;">, Case No. 5:18-cv-00883, was filed against the Company in the United States District Court for the Northern District of California. &#160;The plaintiffs allege that the Company misled consumers in connection with the marketing of AMD processors.&#160;Specifically, the plaintiffs allege that the Company touted the speed and reliability of its processors even though these processors are subject to the Spectre security vulnerability.&#160;The plaintiffs seek to obtain damages under several causes of action for a nationwide class of consumers who allegedly were misled into purchasing or leasing AMD processors (and devices containing AMD processors), as well as attorneys' fees, equitable relief, and restitution.</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">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.</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Environmental Matters</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company is named as a responsible party on Superfund clean-up orders for </font><font style="font-family:inherit;font-size:10pt;">three</font><font style="font-family:inherit;font-size:10pt;"> 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 </font><font style="font-family:inherit;font-size:10pt;">three</font><font style="font-family:inherit;font-size:10pt;"> 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.</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In 1991, the Company received Final Site Clean-up Requirements Orders from the California Regional Water Quality Control Board relating to the </font><font style="font-family:inherit;font-size:10pt;">three</font><font style="font-family:inherit;font-size:10pt;"> 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.</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">To address anticipated future remediation costs under the orders, the Company has computed and recorded an estimated environmental liability of approximately </font><font style="font-family:inherit;font-size:10pt;">$3 million</font><font style="font-family:inherit;font-size:10pt;"> 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.</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Other Legal Matters</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">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&#8217;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&#8217;s financial position, results of operations, or cash flows.</font></div></div>
CY2017 us-gaap Nature Of Operations
NatureOfOperations
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Nature of Operations</font></div><div style="line-height:120%;padding-top:6px;text-align:justify;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Advanced Micro Devices, Inc. is a global semiconductor company. References herein to AMD or the Company mean Advanced Micro Devices, Inc. and its consolidated subsidiaries. The Company primarily offers:</font></div><table cellpadding="0" cellspacing="0" style="padding-top:12px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:84px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:36px;"><font style="font-family:inherit;font-size:10pt;">(i)</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">x86 microprocessors, as standalone devices or as incorporated into an accelerated processing unit (APU), chipsets, discrete and integrated graphics processing units (GPUs), and professional GPUs; and</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:12px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:84px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:36px;"><font style="font-family:inherit;font-size:10pt;">(ii)</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">server and embedded processors, semi-custom System-on-Chip (SoC) products and technology for game consoles.</font></div></td></tr></table><div style="line-height:120%;padding-left:4px;padding-top:12px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"> We also license portions of our intellectual property (IP) portfolio.</font></div></div>
CY2017 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Use of Estimates.</font><font style="font-family:inherit;font-size:10pt;">&#160;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, valuation of investments in marketable securities, deferred income taxes and restructuring charges.</font></div></div>

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