AMD Reports Third Quarter 2018 Financial Results
| (1) | | The Computing and Graphics segment primarily includes desktop and notebook processors and chipsets, discrete and integrated graphics processing units (GPUs) and professional GPUs. The Company also licenses portions of its intellectual property portfolio. |
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| (2) | | The Enterprise, Embedded and Semi-Custom segment primarily includes server and embedded processors, semi-custom System-on-Chip (SoC) products, development services and technology for game consoles. The Company also licenses portions of its intellectual property portfolio. |
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| (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 is stock-based compensation expense. |
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| (4) | |
Reconciliation of GAAP Operating Income to Adjusted EBITDA* |
| | | Three Months Ended | | Nine Months Ended |
| | | September 29, | | June 30, | | September 30, | | September 29, | | September 30, |
| | | 2018 | | 2018 | | 2017 | | 2018 | | 2017 |
| GAAP operating income | | $ | 150 | | | $ | 153 | | | $ | 119 | | | $ | 423 | | | $ | 129 | |
| Stock-based compensation | | | 36 | | | | 33 | | | | 29 | | | | 101 | | | | 76 | |
| Depreciation and amortization | | | 41 | | | | 42 | | | | 36 | | | | 127 | | | | 105 | |
| Adjusted EBITDA | | $ | 227 | | | $ | 228 | | | $ | 184 | | | $ | 651 | | | $ | 310 | |
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| (5) | |
Free cash flow reconciliation** |
| | | Three Months Ended | | Nine Months Ended |
| | | September 29, | | June 30, | | September 30, | | September 29, | | September 30, |
| | | 2018 | | 2018 | | 2017 | | 2018 | | 2017 |
| GAAP net cash provided by (used in) operating activities | | $ | 95 | | | $ | (45 | ) | | $ | 66 | | | $ | (36 | ) | | $ | (315 | ) |
| Purchases of property and equipment | | | (33 | ) | | | (43 | ) | | | (34 | ) | | | (122 | ) | | | (69 | ) |
| Free cash flow | | $ | 62 | | | $ | (88 | ) | | $ | 32 | | | $ | (158 | ) | | $ | (384 | ) |
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