| Operating Segments Information [Text Block] |
Note 3: Operating Segments Information
We manage our business through the following operating segments:
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Client Computing Group (CCG) |
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Includes platforms designed for notebooks, 2 in 1 systems, desktops (including all-in-ones and high-end enthusiast PCs), tablets, phones, wireless and wired connectivity products, and mobile communication components. |
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Data Center Group (DCG) |
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Includes workload-optimized platforms and related products designed for enterprise, cloud, and communication infrastructure market segments. |
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Internet of Things Group (IOTG) |
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Includes platforms designed for Internet of Things market segments, including retail, transportation, industrial, video, buildings and smart cities, along with a broad range of other market segments. |
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Non-Volatile Memory Solutions Group (NSG) |
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Includes Intel® Optane™ SSD products and NAND flash memory products primarily used in solid-state drives. |
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Intel Security Group (ISecG) |
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Includes security software products designed to deliver innovative solutions that secure computers, mobile devices, and networks around the world. |
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Programmable Solutions Group (PSG) |
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Includes programmable semiconductors primarily field-programmable gate array (FPGAs) and related products for a broad range of market segments, including communications, data center, industrial, military, and automotive. |
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All other |
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Includes results from our other non-reportable segments and corporate-related charges. |
We offer platforms that incorporate various components and technologies, including a microprocessor and chipset, a stand-alone System-on-Chip, or a multichip package. A platform may be enhanced by additional hardware, software, and services offered by Intel. Platforms are used in various form factors across our CCG, DCG, and IOTG operating segments. We derive a substantial majority of our revenue from platforms, which is our principal product.
In the third quarter of 2016, we announced our planned divestiture of ISecG, which closed on April 3, 2017, subsequent to the first quarter of 2017. We intend to recast our operating segment results to reflect the divestiture of ISecG to "all other" in the second quarter of 2017. For further information, see "Note 8: Acquisitions and Divestitures."
The “all other” category includes revenue, expenses, and charges such as:
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results of operations from non-reportable segments; |
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amounts included within restructuring and other charges;
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a portion of profit-dependent compensation and other expenses not allocated to the operating segments;
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divested businesses for which discrete operating results are not regularly reviewed by our Chief Operating Decision Maker (CODM), who is our Chief Executive Officer;
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results of operations of start-up businesses that support our initiatives, including our foundry business; and
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acquisition-related costs, including amortization and any impairment of acquisition-related intangibles and goodwill. |
The CODM does not evaluate operating segments using discrete asset information. Operating segments do not record inter-segment revenue. We do not allocate gains and losses from equity investments, interest and other income, or taxes to operating segments. Although the CODM uses operating income to evaluate the segments, operating costs included in one segment may benefit other segments. Except for these differences, the accounting policies for segment reporting are the same as for Intel as a whole.
We have allocated the remaining unallocated goodwill in "all other" from acquisitions completed in 2016 to our non-reportable operating segments.
Net revenue and operating income (loss) for each period were as follows:
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Three Months Ended |
(In Millions) |
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Apr 1,
2017 |
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Apr 2,
2016 |
Net revenue: |
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Client Computing Group |
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Platform |
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$ |
7,397 |
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$ |
7,199 |
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Other |
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579 |
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350 |
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7,976 |
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7,549 |
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Data Center Group |
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Platform |
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3,879 |
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3,707 |
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Other |
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353 |
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292 |
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4,232 |
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3,999 |
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Internet of Things Group |
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Platform |
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632 |
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571 |
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Other |
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89 |
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80 |
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721 |
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651 |
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Non-Volatile Memory Solutions Group |
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866 |
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557 |
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Intel Security Group |
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534 |
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537 |
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Programmable Solutions Group |
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425 |
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359 |
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All other |
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42 |
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50 |
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Total net revenue |
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$ |
14,796 |
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$ |
13,702 |
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Operating income (loss): |
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Client Computing Group |
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$ |
3,031 |
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$ |
1,885 |
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Data Center Group |
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1,487 |
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1,764 |
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Internet of Things Group |
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105 |
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123 |
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Non-Volatile Memory Solutions Group |
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(129 |
) |
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(95 |
) |
Intel Security Group |
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95 |
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85 |
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Programmable Solutions Group |
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92 |
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(200 |
) |
All other |
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(1,082 |
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(994 |
) |
Total operating income |
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$ |
3,599 |
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$ |
2,568 |
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