ADVANCED MICRO DEVICES INCAMD

ADVANCED MICRO DEVICES INC Goodwill & Intangibles Disclosure

10-KFiled Feb 4, 20262 min read
Goodwill and Acquisition-related Intangibles, net
Goodwill
In the first quarter of fiscal year 2025, the Company assigned goodwill to its updated reporting units to reflect the change in its segment reporting structure and determined no impairment immediately prior to and after the change.
The following table summarizes Goodwill:
Before segment change
After segment change
(in millions)
Data Center
Embedded
Client
Gaming
Client and Gaming
Total
December 28, 2024
$3,403 $21,072 $126 $238 $— $24,839 
Reassignment due to segment change
— — (126)(238)364 — 
Acquisitions
287 — — — — 287 
December 27, 2025$3,690 $21,072 $— $— $364 $25,126 
During the fourth quarter of fiscal years 2025 and 2024, the Company conducted its annual qualitative impairment tests of goodwill and concluded that there was no goodwill impairment with respect to its reporting units.
Acquisition-related Intangible Assets
The following table summarizes Acquisition-related Intangible Assets:
December 27, 2025December 28, 2024
Gross Carrying AmountAccumulated AmortizationNet Carrying AmountGross Carrying AmountAccumulated AmortizationNet Carrying Amount
(In millions)(In millions)
Developed technology$13,599 $(3,560)$10,039 $13,408 $(2,529)$10,879 
Customer relationships12,324 (6,267)6,057 12,324 (5,124)7,200 
Product trademarks914 (305)609 914 (225)689 
Acquisition-related intangible assets subject to amortization26,837 (10,132)16,705 26,646 (7,878)18,768 
In-process research and development (IPR&D) not subject to amortization— — — 162 — 162 
Total acquisition-related intangible assets, net$26,837 $(10,132)$16,705 $26,808 $(7,878)$18,930 
In April 2025, $162 million of IPR&D intangible asset reached technological feasibility, was placed in service as developed technology and started amortization over its estimated useful life of 5 years.
Acquisition-related intangible amortization expense was $2.3 billion, $2.4 billion and $2.8 billion in fiscal year 2025, 2024 and 2023, respectively.
Based on the carrying value of acquisition-related intangibles recorded as of December 27, 2025, and assuming no subsequent impairment of the underlying assets, the estimated future annual amortization expense for acquisition-related intangibles is as follows:
Fiscal Year
20262027202820292030
2031 and thereafter
Total
(In millions)
Future annual amortization
$2,153 $2,036 $1,923 $1,691 $1,454 $7,448 $16,705 

Historical Timeline

Fiscal YearFiled
2025Feb 4, 2026Showing above
2024Feb 5, 2025
2023Jan 31, 2024
2022Feb 27, 2023
2021Feb 3, 2022
2020Jan 29, 2021
2019Feb 4, 2020
2018Feb 8, 2019
2017Feb 27, 2018
2016Feb 21, 2017
2015Feb 18, 2016

About Goodwill & Intangibles Disclosures

Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.

Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.

Other Available Disclosures

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