Quarterly report pursuant to Section 13 or 15(d)

Operating Segments Information

v3.7.0.1
Operating Segments Information
6 Months Ended
Jul. 01, 2017
Segment Reporting [Abstract]  
Operating Segments Information [Text Block]
Note 3: Operating Segments Information
We manage our business through the following operating segments:
Client Computing Group (CCG)
 
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.
 
Data Center Group (DCG)
 
Includes workload-optimized platforms for compute, storage, and network functions and related products designed for enterprise, cloud, and communication infrastructure market segments.
 
Internet of Things Group (IOTG)
 
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.
 
Non-Volatile Memory Solutions Group (NSG)
 
Includes Intel® Optane™ SSD products and NAND flash memory products primarily used in solid-state drives.
 
Programmable Solutions Group (PSG)
 
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.
 
All other
 
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.
The “all other” category includes revenue, expenses, and charges such as:
results of operations from non-reportable segments;
amounts included within restructuring and other charges;
a portion of profit-dependent compensation and other expenses not allocated to the operating segments;
divested businesses for which discrete operating results are not regularly reviewed by our Chief Operating Decision Maker (CODM), who is our Chief Executive Officer;
results of operations of start-up businesses that support our initiatives, including our foundry business; and
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.
Net revenue and operating income (loss) for each period were as follows:
 
 
Three Months Ended
 
Six Months Ended
(In Millions)
 
Jul 1,
2017
 
Jul 2,
2016
 
Jul 1,
2017
 
Jul 2,
2016
Net revenue:
 
 
 
 
 
 
 
 
Client Computing Group
 
 
 
 
 
 
 
 
Platform
 
$
7,634

 
$
6,938

 
$
15,031

 
$
14,137

Other
 
579

 
400

 
1,158

 
750

 
 
8,213

 
7,338

 
16,189

 
14,887

Data Center Group
 
 
 
 
 
 
 
 
Platform
 
4,026

 
3,718

 
7,905

 
7,425

Other
 
346

 
309

 
699

 
601

 
 
4,372

 
4,027

 
8,604

 
8,026

Internet of Things Group
 
 
 
 
 
 
 
 
Platform
 
614

 
497

 
1,246

 
1,068

Other
 
106

 
75

 
195

 
155

 
 
720

 
572

 
1,441

 
1,223

Non-Volatile Memory Solutions Group
 
874

 
554

 
1,740

 
1,111

Programmable Solutions Group
 
440

 
465

 
865

 
824

All other
 
144

 
577

 
720

 
1,164

Total net revenue
 
$
14,763

 
$
13,533

 
$
29,559

 
$
27,235

Operating income (loss):
 
 
 
 
 
 
 
 
Client Computing Group
 
$
3,025

 
$
1,911

 
$
6,056

 
$
3,796

Data Center Group
 
1,661

 
1,765

 
3,148

 
3,529

Internet of Things Group
 
139

 
89

 
244

 
212

Non-Volatile Memory Solutions Group
 
(110
)
 
(224
)
 
(239
)
 
(319
)
Programmable Solutions Group
 
97

 
(62
)
 
189

 
(262
)
All other
 
(985
)
 
(2,161
)
 
(1,972
)
 
(3,070
)
Total operating income
 
$
3,827

 
$
1,318

 
$
7,426

 
$
3,886