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This paper analyzes rotor eddy-current loss in permanent-magnet brushless ac machines. It is shown that analytical or finite-element techniques published in literature for predicting rotor eddy-current loss using space harmonic based approaches may not yield correct results in each magnet segment when one magnet-pole is circumferentially segmented into more than two pieces. It is also shown that the eddy-current loss in each equally segmented piece may differ by a large margin, which implies that the temperature distribution in the magnets will be uneven and the risk of demagnetization has to be carefully assessed. The theoretical derivation is validated by time-stepped transient finite-element analysis.