Spreadsheet: b2d1ba6d-3340-41f3-af01-4d1ed72fde2a
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 |  |  |  |  |  |  |  |  |  |  |  | Year Ended
 |  |  | Dec. 25, 2010 |  |  |  | Sept. 25, 2010 |  |  |  | Dec. 26, 2009 |  |  |  | Dec. 25, 2010 |  |  |  | Dec. 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 |  | 1649 | 0 | 1649 |  | 1618 | 0 | 1618 |  | 1646 | 0 | 1646 |  | 6494 | 0 | 6494 |  | 5403 | 0 | 5403
 | Cost of sales |  | 906 | 0 | 906 |  | 879 | 0 | 879 |  | 911 | -56 | 967 |  | 3533 | -69 | 3602 |  | 3131 | -159 | 3290
 | Gross margin |  | 743 | 0 | 743 |  | 739 | 0 | 739 |  | 735 | 56 | 679 |  | 2961 | 69 | 2892 |  | 2272 | 159 | 2113
 | Gross margin % |  | 0.45 |  | 0.45 |  | 0.46 |  | 0.46 |  | 0.45 |  | 0.41 |  | 0.46 |  | 0.46 |  | 0.42 |  | 0.39
 | Research and development |  | 352 | 0 | 352 |  | 359 | 0 | 359 |  | 432 | 131 | 301 |  | 1405 | 0 | 1405 |  | 1721 | 524 | 1197
 | Marketing, general and administrative |  | 250 | 0 | 250 |  | 236 | 0 | 236 |  | 239 | 30 | 209 |  | 934 | 0 | 934 |  | 994 | 116 | 878
 | Legal settlement |  | -283 | 0 | -283 |  | 0 | 0 | 0 |  | -1242 |  | -1242 |  | -283 | 0 | -283 |  | -1242 | 0 | -1242
 | Amortization of acquired intangible assets |  | 11 | 0 | 11 |  | 16 | 0 | 16 |  | 18 |  | 18 |  | 61 | 0 | 61 |  | 70 | 0 | 70
 | Restructuring charges (reversal) |  | 0 | 0 | 0 |  | 0 | 0 | 0 |  | 0 |  | 0 |  | -4 | 0 | -4 |  | 65 | 0 | 65
 | Operating income (loss) |  | 413 | 0 | 413 |  | 128 | 0 | 128 |  | 1288 | -105 | 1393 |  | 848 | 69 | 779 |  | 664 | -481 | 1145
 | Interest income |  | 2 | 0 | 2 |  | 3 | 0 | 3 |  | 3 |  | 3 |  | 11 | 0 | 11 |  | 16 | 1 | 15
 | Interest expense |  | -39 | 0 | -39 |  | -56 | 0 | -56 |  | -119 | -48 | -71 |  | -199 | 0 | -199 |  | -438 | -152 | -286
 | Other income (expense), net |  | 14 | 0 | 14 |  | -6 | 0 | -6 |  | 19 | 6 | 13 |  | 311 | 325 | -14 |  | 166 | -55 | 221
 | Income (loss) before equity in net income (loss) of investee and income taxes |  | 390 | 0 | 390 |  | 69 | 0 | 69 |  | 1191 | -147 | 1338 |  | 971 | 394 | 577 |  | 408 | -687 | 1095
 | Provision (benefit) for income taxes |  | 42 | 0 | 42 |  | 1 | 0 | 1 |  | 11 | -9 | 20 |  | 38 | 0 | 38 |  | 112 | 136 | -24
 | Equity in net income (loss) of investee |  | 27 | 27 | 0 |  | -186 | -186 | 0 |  | 0 | 0 | 0 |  | -462 | -462 | 0 |  | 0 | 0 | 0
 | Income (loss) from continuing operations |  | 375 | 27 | 348 |  | -118 | -186 | 68 |  | 1180 | -138 | 1318 |  | 471 | -68 | 539 |  | 296 | -823 | 1119
 | Income (loss) from discountinued operations, net of tax |  | 0 | 0 | 0 |  | 0 | 0 | 0 |  | -3 | 0 | -3 |  | 0 | 0 | 0 |  | -3 | 0 | -3
 | Net income (loss) |  | 375 | 27 | 348 |  | -118 | -186 | 68 |  | 1177 | -138 | 1315 |  | 471 | -68 | 539 |  | 293 | -823 | 1116
 | Net Income (loss) attributable to non-controlling interest |  | 0 |  |  |  | 0 |  |  |  | 23 |  |  |  | 0 |  |  |  | 83
 | Class B preferred accretion |  | 0 |  |  |  | 0 |  |  |  | -22 |  |  |  | 0 |  |  |  | -72
 | Net income (loss) attributable to AMD common stockholders |  | 375 |  | 348 |  | -118 |  | 68 |  | 1178 |  | 1315 |  | 471 |  | 539 |  | 304 |  | 1116
 | Non-GAAP diluted earnings per share(4) |  |  |  | 0.47 |  |  |  | 0.09 |  |  |  | 1.69 |  |  |  | 0.73 |  |  |  | 1.604527296937417
 | (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 our portion GF's results of operations in the fourth and third fiscal quarters of 2010 and the year ended December 25, 2010, and Foundry segment and Intersegment Eliminations in the fourth fiscal quarter of 2009 and the year ended December 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 fourth and third quarters of 2010, the Company excluded Equity in net income (loss) of investee. For the year ended December 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 fourth fiscal quarter of 2009 and the year ended December 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 fourth fiscal quarter of 2010 is 758 million shares, including the 24 million shares related to the Company's 5.75% convertible notes.  The outstanding diluted share amounts for non-GAAP diluted earnings per share calculation for the third fiscal quarter and year ended December 25, 2010 is 731 million shares and 733 million shares, respectively. These share amounts exclude the 24 million shares related to the Company's 5.75% convertible notes because the inclusion of these shares would be anti-dilutive.