Quarterly report pursuant to Section 13 or 15(d)

Operating Segments

v3.21.2
Operating Segments
6 Months Ended
Jun. 26, 2021
Segment Reporting [Abstract]  
Operating Segments
Note 2 : Operating Segments
We manage our business through the following operating segments:
CCG
DCG
IOTG
Mobileye
NSG
PSG
We derive a substantial majority of our revenue from platform products, which are our principal products and considered as one product class. We offer platform products that incorporate various components and technologies, including a microprocessor and chipset, a stand-alone SoC, or a multichip package. Platform products are used in various form factors across our CCG, DCG, and IOTG operating segments. Our non-platform, or adjacent products, can be combined with platform products to form comprehensive platform solutions to meet customer needs.
CCG and DCG are our reportable operating segments. IOTG, Mobileye, NSG, and PSG do not meet the quantitative thresholds to qualify as reportable operating segments; however, we have elected to disclose the results of these non-reportable operating segments. Our Internet of Things portfolio, presented as Internet of Things, is comprised of IOTG and Mobileye operating segments. In 2021, our DCG operating segment includes the results of our Intel® OptaneTM memory business, and our NSG operating segment is composed of our NAND memory business. Refer to "Note 8: Acquisitions and Divestitures" within Notes to Consolidated Condensed Financial Statements for further information on the pending divestiture of our NAND memory business.
We have an “all other” category that includes revenue, expenses, and charges such as:
results of operations from non-reportable segments not otherwise presented;
historical results of operations from divested businesses;
results of operations of start-up businesses that support our initiatives, including our foundry business;
amounts included within restructuring and other charges;
a portion of employee benefits, compensation, and other expenses not allocated to the operating segments; and
acquisition-related costs, including amortization and any impairment of acquisition-related intangibles and goodwill.
The CODM, who is our CEO, 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. 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)
Jun 26, 2021 Jun 27, 2020 Jun 26, 2021 Jun 27, 2020
Net revenue:
Client Computing Group
Platform $ 9,397  $ 8,229  $ 19,014  $ 16,941 
Adjacent 712  1,267  1,700  2,330 
10,109  9,496  20,714  19,271 
Data Center Group
Platform 5,703  6,181  10,514  12,608 
Adjacent 752  936  1,505  1,502 
6,455  7,117  12,019  14,110 
Internet of Things
IOTG 984  670  1,898  1,553 
Mobileye 327  146  704  400 
1,311  816  2,602  1,953 
Non-Volatile Memory Solutions Group 1,098  1,659  2,205  2,997 
Programmable Solutions Group 486  501  972  1,020 
All other 172  139  792  205 
Total net revenue $ 19,631  $ 19,728  $ 39,304  $ 39,556 
Operating income (loss):
Client Computing Group $ 3,760  $ 2,842  $ 7,880  $ 7,067 
Data Center Group 1,941  3,099  3,214  6,591 
Internet of Things
IOTG 287  70  499  313 
Mobileye 109  (4) 256  84 
396  66  755  397 
Non-Volatile Memory Solutions Group 402  322  573  256 
Programmable Solutions Group 82  80  170  177 
All other (1,035) (712) (3,352) (1,753)
Total operating income $ 5,546  $ 5,697  $ 9,240  $ 12,735 
Disaggregated net revenue for each period was as follows:
Three Months Ended Six Months Ended
(In Millions)
Jun 26, 2021 Jun 27, 2020 Jun 26, 2021 Jun 27, 2020
Platform revenue
CCG desktop platform $ 2,635  $ 2,368  $ 5,279  $ 5,208 
CCG notebook platform 6,743  5,844  13,702  11,701 
CCG other platform1
19  16  33  31 
DCG platform 5,703  6,181  10,514  12,608 
IOTG platform 891  619  1,731  1,414 
15,991  15,028  31,259  30,962 
Adjacent revenue2
3,640  4,700  8,045  8,594 
Total revenue $ 19,631  $ 19,728  $ 39,304  $ 39,556 
1    Includes our tablet and service provider revenue.
2    Includes all of our non-platform products for CCG, DCG, and IOTG such as modem, Ethernet, and silicon photonics, as well as Mobileye, NSG, and PSG products, as well as revenue included in our "all other" category.