Annual report pursuant to Section 13 and 15(d)

Operating Segments

v3.21.4
Operating Segments
 12 Months Ended
Dec. 25, 2021
Segment Reporting [Abstract]  
Operating Segments
Note 3 : 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 class of product. We offer platform products that incorporate various components and technologies, including a microprocessor and chipset, a stand-alone SoC, or a multichip package, based on Intel architecture. 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 the IOTG and Mobileye operating segments. For 2021, the results of our Intel Optane memory business are included in our DCG operating segment, and our NSG segment is comprised of our NAND memory business to align to the pending divestiture of our NAND memory business. Refer to "Note 10 : Acquisitions and Divestitures" within Notes to Consolidated Financial Statements for further information on the divestiture.
We have sales and marketing, manufacturing, engineering, finance, and administration groups. Expenses for these groups are generally allocated to the operating segments.
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, allocates resources to and assesses the performance of each operating segment using information about the operating segment's revenue and operating income (loss). The CODM does not evaluate operating segments using discrete asset information and we do not identify or allocate assets by operating segments. Based on the interchangeable nature of our manufacturing and assembly and test assets, most of the related depreciation expense is not directly identifiable within our operating segments, as it is included in overhead cost pools and subsequently absorbed into inventory as each product passes through our manufacturing process. Because our products are then sold across multiple operating segments, it is impracticable to determine the total depreciation expense included as a component of each operating segment's operating income (loss) results. 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:
Years Ended (In Millions) Dec 25, 2021 Dec 26, 2020 Dec 28, 2019
Net revenue:
Client Computing Group
Platform $ 37,376  $ 35,642  $ 32,681 
Adjacent 3,135  4,415  4,465 
40,511  40,057  37,146 
Data Center Group
Platform 22,703  23,056  21,441 
Adjacent 3,118  3,047  2,040 
25,821  26,103  23,481 
Internet of Things
IOTG 3,998  3,007  3,821 
Mobileye 1,386  967  879 
5,384  3,974  4,700 
Non-Volatile Memory Solutions Group 4,306  5,358  4,362 
Programmable Solutions Group 1,934  1,853  1,987 
All other 1,068  522  289 
Total net revenue $ 79,024  $ 77,867  $ 71,965 
Operating income (loss):
Client Computing Group $ 14,672  $ 15,129  $ 15,202 
Data Center Group 6,997  10,571  10,227 
Internet of Things
IOTG 1,045  497  1,097 
Mobileye 460  241  245 
1,505  738  1,342 
Non-Volatile Memory Solutions Group 1,369  361  (1,176)
Programmable Solutions Group 297  260  318 
All other (5,384) (3,381) (3,878)
Total operating income $ 19,456  $ 23,678  $ 22,035 
Disaggregated net revenue for each period was as follows:
Years Ended (In Millions) Dec 25, 2021 Dec 26, 2020 Dec 28, 2019
Platform revenue
CCG notebook platform $ 25,475  $ 24,903  $ 20,779 
CCG desktop platform 11,835  10,692  11,822 
CCG other platform1
66  47  80 
DCG platform 22,703  23,056  21,441 
IOTG platform 3,658  2,705  3,440 
63,737  61,403  57,562 
Adjacent revenue2
15,287  16,464  14,403 
Total revenue $ 79,024  $ 77,867  $ 71,965 
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 productsIn 2021, our three largest customers accounted for 43% of our net revenue (39% in 2020 and 41% in 2019), with Dell Inc. accounting for 21% (17% in 2020 and 17% in 2019), Lenovo Group Limited accounting for 12% (12% in 2020 and 13% in 2019), and HP Inc. accounting for 10% (10% in 2020 and 11% in 2019). These three customers accounted for 42% of our accounts receivable as of December 25, 2021 (43% as of December 26, 2020). Substantially all of the revenue from these customers was from the sale of platforms and other components by the CCG and DCG operating segments.
Net revenue by region, based on the billing location of the customer, was as follows:
Years Ended (In Millions) Dec 25, 2021 Dec 26, 2020 Dec 28, 2019
China $ 21,141  $ 20,257  $ 20,026 
Singapore 14,254  17,845  15,650 
United States 14,107  16,573  15,617 
Taiwan 13,461  11,605  10,058 
Other regions 16,061  11,587  10,614 
Total net revenue $ 79,024  $ 77,867  $ 71,965