Quarterly report pursuant to Section 13 or 15(d)

Operating Segments Information

v3.3.0.814
Operating Segments Information
 9 Months Ended
Sep. 26, 2015
Segment Reporting [Abstract]  
Operating Segments Information [Text Block]
Note 22: Operating Segments Information
Our operating segments in effect as of September 26, 2015 include:
•    Client Computing Group
 
•    All other
•    Data Center Group
 
•    Non-Volatile Memory Solutions Group
•    Internet of Things Group
 
•    New Devices Group
•    Software and services operating segments
 
 
•    McAfee
 
 
•    Software and Services Group
 
 
During the first quarter of 2015, we combined the PC Client Group and Mobile and Communications Group to create the Client Computing Group (CCG). This change in our organizational structure reflects our strategy to address all aspects of the client computing market segment and utilize our intellectual property to offer compelling customer solutions. All prior-period amounts have been retrospectively adjusted to reflect the way we internally manage and monitor segment performance starting in fiscal year 2015 and includes other minor reorganizations.
The Chief Operating Decision Maker (CODM) is our CEO. The CODM allocates resources to and assesses the performance of each operating segment using information about its revenue and operating income (loss).
We manage our business activities primarily based on a product segmentation basis. CCG and Data Center Group are our reportable operating segments. Internet of Things Group and the aggregated “software and services operating segments” as shown in the preceding operating segment list, 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 Non-Volatile Memory Solutions Group and New Devices Group operating segments do not meet the quantitative thresholds to qualify as reportable segments and their combined results are included within the “all other” category.
Revenue for our reportable and aggregated non-reportable operating segments is primarily related to the following product lines:
•
Client Computing Group. Includes platforms designed for the notebook (including Ultrabook™ devices), 2 in 1 systems, the desktop (including all-in-ones and high-end enthusiast PCs), tablets, and smartphones; wireless and wired connectivity products; as well as mobile communication components.
•
Data Center Group. Includes server, network, and storage platforms designed for enterprise, cloud, communications infrastructure, and technical computing segments.
•
Internet of Things Group. Includes platforms designed for embedded market segments including retail, transportation, industrial, and buildings and home, along with a broad range of other market segments.
•
Software and services operating segments. Includes software and hardware products for endpoint security, network and content security, risk and compliance, and consumer and mobile security from our McAfee business, and software products and services that promote Intel architecture as the platform of choice for software development.
We have sales and marketing, manufacturing, engineering, finance, and administration groups. Expenses for these groups are generally allocated to the operating segments, and the expenses are included in the following operating results.
The “all other” category includes revenue, expenses, and charges such as:
•
results of operations from our Non-Volatile Memory Solutions Group and New Devices Group;
•
amounts included within restructuring and asset impairment 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 CODM;
•
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
 
Nine Months Ended
(In Millions)
 
Sep 26,
2015
 
Sep 27,
2014
 
Sep 26,
2015
 
Sep 27,
2014
Net revenue:
 
 
 
 
 
 
 
 
Client Computing Group
 
 
 
 
 
 
 
 
Platform
 
$
8,089

 
$
8,749

 
$
22,262

 
$
24,744

Other
 
417

 
442

 
1,201

 
1,262

 
 
8,506

 
9,191

 
23,463

 
26,006

Data Center Group
 
 
 
 
 
 
 
 
Platform
 
3,863

 
3,439

 
10,861

 
9,543

Other
 
277

 
261

 
808

 
753

 
 
4,140

 
3,700

 
11,669

 
10,296

Internet of Things Group
 
 
 
 
 
 
 
 
Platform
 
501

 
456

 
1,450

 
1,320

Other
 
80

 
74

 
223

 
231

 
 
581

 
530

 
1,673

 
1,551

Software and services operating segments
 
556

 
558

 
1,624

 
1,659

All other
 
682

 
575

 
2,012

 
1,637

Total net revenue
 
$
14,465

 
$
14,554

 
$
40,441

 
$
41,149

Operating income (loss):
 
 
 
 
 
 
 
 
Client Computing Group
 
$
2,433

 
$
3,053

 
$
5,445

 
$
7,486

Data Center Group
 
2,127

 
1,946

 
5,671

 
5,124

Internet of Things Group
 
151

 
145

 
383

 
406

Software and services operating segments
 
102

 
29

 
119

 
56

All other
 
(621
)
 
(633
)
 
(1,915
)
 
(2,178
)
Total operating income
 
$
4,192

 
$
4,540

 
$
9,703

 
$
10,894