Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Advanced Micro Devices Inc., balance sheet: goodwill and intangible assets

US$ in millions

	Dec 30, 2023	Dec 31, 2022	Dec 25, 2021	Dec 26, 2020	Dec 28, 2019
Developed technology	13,390)	12,360)	—)	—)	—)
Customer relationships	12,324)	12,324)	—)	—)	—)
Customer backlog	809)	809)	—)	—)	—)
Corporate trade name	65)	65)	—)	—)	—)
Product trademarks	914)	914)	—)	—)	—)
Identified intangible assets subject to amortization, gross	27,502)	26,472)	—)	—)	—)
Accumulated amortization	(6,359)	(3,548)	—)	—)	—)
Identified intangible assets subject to amortization, net	21,143)	22,924)	—)	—)	—)
IPR&D not subject to amortization	220)	1,194)	—)	—)	—)
Acquisition-related intangible assets	21,363)	24,118)	—)	—)	—)
Goodwill	24,262)	24,177)	289)	289)	289)
Acquisition-related intangible assets and goodwill	45,625)	48,295)	289)	289)	289)

Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).

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Item	Description	The company
Acquisition-related intangible assets	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Advanced Micro Devices Inc. acquisition-related intangible assets increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	Advanced Micro Devices Inc. goodwill increased from 2021 to 2022 and from 2022 to 2023.
Acquisition-related intangible assets and goodwill	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Advanced Micro Devices Inc. acquisition-related intangible assets and goodwill increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

Advanced Micro Devices Inc., adjustments to financial statements

US$ in millions

	Dec 30, 2023	Dec 31, 2022	Dec 25, 2021	Dec 26, 2020	Dec 28, 2019
Adjustment to Total Assets
Total assets (as reported)	67,885)	67,580)	12,419)	8,962)	6,028)
Less: Goodwill	24,262)	24,177)	289)	289)	289)
Total assets (adjusted)	43,623)	43,403)	12,130)	8,673)	5,739)
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported)	55,892)	54,750)	7,497)	5,837)	2,827)
Less: Goodwill	24,262)	24,177)	289)	289)	289)
Stockholders’ equity (adjusted)	31,630)	30,573)	7,208)	5,548)	2,538)

Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).

Advanced Micro Devices Inc., Financial Data: Reported vs. Adjusted

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Advanced Micro Devices Inc., adjusted financial ratios

	Dec 30, 2023	Dec 31, 2022	Dec 25, 2021	Dec 26, 2020	Dec 28, 2019
Total Asset Turnover
Reported total asset turnover	0.33	0.35	1.32	1.09	1.12
Adjusted total asset turnover	0.52	0.54	1.35	1.13	1.17
Financial Leverage
Reported financial leverage	1.21	1.23	1.66	1.54	2.13
Adjusted financial leverage	1.38	1.42	1.68	1.56	2.26
Return on Equity (ROE)
Reported ROE	1.53%	2.41%	42.18%	42.66%	12.06%
Adjusted ROE	2.70%	4.32%	43.87%	44.88%	13.44%
Return on Assets (ROA)
Reported ROA	1.26%	1.95%	25.46%	27.78%	5.66%
Adjusted ROA	1.96%	3.04%	26.07%	28.71%	5.94%

Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Advanced Micro Devices Inc. adjusted total asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Advanced Micro Devices Inc. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Advanced Micro Devices Inc. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Advanced Micro Devices Inc. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.

Advanced Micro Devices Inc., Financial Ratios: Reported vs. Adjusted

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	Dec 30, 2023	Dec 31, 2022	Dec 25, 2021	Dec 26, 2020	Dec 28, 2019
As Reported
Selected Financial Data (US$ in millions)
Net revenue	22,680)	23,601)	16,434)	9,763)	6,731)
Total assets	67,885)	67,580)	12,419)	8,962)	6,028)
Activity Ratio
Total asset turnover¹	0.33	0.35	1.32	1.09	1.12
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net revenue	22,680)	23,601)	16,434)	9,763)	6,731)
Adjusted total assets	43,623)	43,403)	12,130)	8,673)	5,739)
Activity Ratio
Adjusted total asset turnover²	0.52	0.54	1.35	1.13	1.17

Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).

2023 Calculations

¹ Total asset turnover = Net revenue ÷ Total assets
= 22,680 ÷ 67,885 = 0.33

² Adjusted total asset turnover = Net revenue ÷ Adjusted total assets
= 22,680 ÷ 43,623 = 0.52

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Advanced Micro Devices Inc. adjusted total asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

	Dec 30, 2023	Dec 31, 2022	Dec 25, 2021	Dec 26, 2020	Dec 28, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets	67,885)	67,580)	12,419)	8,962)	6,028)
Stockholders’ equity	55,892)	54,750)	7,497)	5,837)	2,827)
Solvency Ratio
Financial leverage¹	1.21	1.23	1.66	1.54	2.13
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	43,623)	43,403)	12,130)	8,673)	5,739)
Adjusted stockholders’ equity	31,630)	30,573)	7,208)	5,548)	2,538)
Solvency Ratio
Adjusted financial leverage²	1.38	1.42	1.68	1.56	2.26

Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).

2023 Calculations

¹ Financial leverage = Total assets ÷ Stockholders’ equity
= 67,885 ÷ 55,892 = 1.21

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 43,623 ÷ 31,630 = 1.38

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Advanced Micro Devices Inc. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.

	Dec 30, 2023	Dec 31, 2022	Dec 25, 2021	Dec 26, 2020	Dec 28, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income	854)	1,320)	3,162)	2,490)	341)
Stockholders’ equity	55,892)	54,750)	7,497)	5,837)	2,827)
Profitability Ratio
ROE¹	1.53%	2.41%	42.18%	42.66%	12.06%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income	854)	1,320)	3,162)	2,490)	341)
Adjusted stockholders’ equity	31,630)	30,573)	7,208)	5,548)	2,538)
Profitability Ratio
Adjusted ROE²	2.70%	4.32%	43.87%	44.88%	13.44%

Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).

2023 Calculations

¹ ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 854 ÷ 55,892 = 1.53%

² Adjusted ROE = 100 × Net income ÷ Adjusted stockholders’ equity
= 100 × 854 ÷ 31,630 = 2.70%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Advanced Micro Devices Inc. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.

	Dec 30, 2023	Dec 31, 2022	Dec 25, 2021	Dec 26, 2020	Dec 28, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income	854)	1,320)	3,162)	2,490)	341)
Total assets	67,885)	67,580)	12,419)	8,962)	6,028)
Profitability Ratio
ROA¹	1.26%	1.95%	25.46%	27.78%	5.66%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income	854)	1,320)	3,162)	2,490)	341)
Adjusted total assets	43,623)	43,403)	12,130)	8,673)	5,739)
Profitability Ratio
Adjusted ROA²	1.96%	3.04%	26.07%	28.71%	5.94%

Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).

2023 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 854 ÷ 67,885 = 1.26%

² Adjusted ROA = 100 × Net income ÷ Adjusted total assets
= 100 × 854 ÷ 43,623 = 1.96%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Advanced Micro Devices Inc. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.

Advanced Micro Devices Inc. (NASDAQ:AMD)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

Advanced Micro Devices Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Advanced Micro Devices Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)