Spreadsheet: 6d6d5532-0306-4452-9fab-e5618d3ca92c
Sheet: IS Non GAAP

 | ADVANCED MICRO DEVICES, INC.
 | AMD NON-GAAP AND RECONCILIATIONS TO CONSOLIDATED STATEMENTS OF OPERATIONS (1)
 | (Millions except per share amounts and percentages)
 |  |  | Quarter Ended |  |  |  |  |  |  |  |  |  |  |  | Nine Months Ended
 |  |  | Sept. 25, 2010 |  |  |  | June 26, 2010 |  |  |  | Sept. 26, 2009 |  |  |  | Sept. 25, 2010 |  |  |  | Sept. 26, 2009
 |  |  | AMD(2) | GF related adjustments(3) | AMD Non-GAAP |  | AMD(2) | GF related adjustments(3) | AMD Non-GAAP |  | AMD(2) | Foundry segment and Intersegment Eliminations (3) | AMD Non-GAAP |  | AMD(2) | GF related adjustments(3) | AMD Non-GAAP |  | AMD(2) | Foundry segment and Intersegment Eliminations (3) | AMD Non-GAAP
 | Net revenue |  | 1618 | 0 | 1618 |  | 1653 | 0 | 1653 |  | 1396 | 0 | 1396 |  | 4845 | 0 | 4845 |  | 3757 | 0 | 3757
 | Cost of sales |  | 879 | 0 | 879 |  | 915 | 0 | 915 |  | 811 | -49 | 860 |  | 2627 | -69 | 2696 |  | 2220 | -103 | 2323
 | Gross margin |  | 739 | 0 | 739 |  | 738 | 0 | 738 |  | 585 | 49 | 536 |  | 2218 | 69 | 2149 |  | 1537 | 103 | 1434
 | Gross margin % |  | 0.46 |  | 0.4567367119901112 |  | 0.4462152146096751 |  | 0.4464609800362976 |  | 0.42 |  | 0.3839541547277937 |  | 0.46 |  | 0.4435500515995872 |  | 0.41 |  | 0.3816875166356135
 | Research and development |  | 359 | 0 | 359 |  | 371 | 0 | 371 |  | 420 | 135 | 285 |  | 1053 | 0 | 1053 |  | 1289 | 393 | 896
 | Marketing, general and administrative |  | 236 | 0 | 236 |  | 229 | 0 | 229 |  | 221 | 26 | 195 |  | 684 | 0 | 684 |  | 755 | 86 | 669
 | Amortization of acquired intangible assets |  | 16 | 0 | 16 |  | 17 | 0 | 17 |  | 17 | 0 | 17 |  | 50 | 0 | 50 |  | 52 | 0 | 52
 | Restructuring charges (reversal) |  | 0 | 0 | 0 |  | -4 | 0 | -4 |  | 4 | 0 | 4 |  | -4 | 0 | -4 |  | 65 | 0 | 65
 | Operating income (loss) |  | 128 | 0 | 128 |  | 125 | 0 | 125 |  | -77 | -112 | 35 |  | 435 | 69 | 366 |  | -624 | -376 | -248
 | Interest income |  | 3 | 0 | 3 |  | 3 | 0 | 3 |  | 4 | 1 | 3 |  | 9 | 0 | 9 |  | 13 | 1 | 12
 | Interest expense |  | -56 | 0 | -56 |  | -55 | 0 | -55 |  | -114 | -44 | -70 |  | -160 | 0 | -160 |  | -319 | -104 | -215
 | Other income (expense), net |  | -6 | 0 | -6 |  | -1 | 0 | -1 |  | 47 | -17 | 64 |  | 297 | 325 | -28 |  | 147 | -61 | 208
 | Income (loss) before equity in net income (loss) of investee and income taxes |  | 69 | 0 | 69 |  | 72 | 0 | 72 |  | -140 | -172 | 32 |  | 581 | 394 | 187 |  | -783 | -540 | -243
 | Provision (benefit) for income taxes |  | 1 | 0 | 1 |  | -5 | 0 | -5 |  | -5 | 19 | -24 |  | -4 | 0 | -4 |  | 101 | 145 | -44
 | Equity in net income (loss) of investee |  | -186 | -186 | 0 |  | -120 | -120 | 0 |  | 0 | 0 | 0 |  | -489 | -489 | 0 |  | 0 | 0 | 0
 | Net income (loss) |  | -118 | -186 | 68 |  | -43 | -120 | 77 |  | -135 | -191 | 56 |  | 96 | -95 | 191 |  | -884 | -685 | -199
 | Net Income (loss) attributable to non-controlling interest |  | 0 |  |  |  | 0 |  |  |  | 29 |  |  |  | 0 |  |  |  | 60
 | Class B preferred accretion |  | 0 |  |  |  | 0 |  |  |  | -22 |  |  |  | 0 |  |  |  | -50
 | Net income (loss) attributable to AMD common stockholders |  | -118 |  | 68 |  | -43 |  | 77 |  | -128 |  | 56 |  | 96 |  | 191 |  | -874 |  | -199
 | Non-GAAP diluted earnings per share(4) |  |  |  | 0.09 |  |  |  | 0.11 |  |  |  | 0.08 |  |  |  | 0.2609289617486339 |  |  |  | -0.3
 | (1) | From March 2, 2009 through December 26, 2009, the Company consolidated the operating results of GLOBALFOUNDRIES Inc. (GF).  Starting in the first fiscal quarter of 2010 the Company began to account for its investment in GF under the equity method of accounting.  The Company believes this non-GAAP presentation makes it easier for investors to compare current and historical period operating results, by excluding the results of operations of GF in the third and second fiscal quarters of 2010 and the nine months ended September 25, 2010, and Foundry segment and Intersegment Eliminations in the third fiscal quarter of 2009 and nine months ended September 26, 2009.
 | (2) | Starting in the first fiscal quarter of 2010, the Company began to account for its investment in GF under the equity method of accounting.  From March 2, 2009 through December 26, 2009 the operating results of GF were included in the Foundry segment.
 | (3) | For the third and second fiscal quarters of 2010, the Company excluded Equity in net income (loss) of investee. For the nine months ended September 25, 2010, the Company also excluded the gain recognized on the fair value assessment of its investment in GF upon deconsolidation, and the gross margin benefit due to the deconsolidation of GF. For the third fiscal quarter of 2009 and the nine months ended September 26, 2009, the Company excluded the Foundry segment and Intersegment Eliminations consisting of revenues, cost of sales, and profit on inventory between the Computing Solutions and the Foundry segments.
 | (4) | The outstanding diluted share amount for the non-GAAP diluted earnings per share calculation for the third fiscal quarter of 2010, the second fiscal quarter of 2010, and the nine month period ended September 25, 2010 are 731 million shares, 733 million shares, and 732 million shares, respectively. These share amounts exclude the 24 million shares issuable upon conversion of the Company's 5.75% convertible notes because the inclusion of these shares would be anti-dilutive.