| Operating Segments Information [Text Block] |
Note 22: Operating Segments Information
Our operating segments in effect as of April 2, 2016 include:
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• Client Computing Group (CCG)
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• Intel Security Group (ISecG)
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• Data Center Group (DCG)
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• Programmable Solutions Group (PSG)
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• Internet of Things Group (IOTG)
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• All other
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• Non-Volatile Memory Solutions Group (NSG)
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• New Technology Group (NTG)
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During the first quarter of 2016, we formed PSG as a result of our acquisition of Altera. For further information, see "Note 8: Acquisitions." Additionally, we formed NTG, which includes products designed for wearables, cameras, and other market segments (including drones), and determined Software and Services Group is no longer an operating segment. All prior-period amounts have been retrospectively adjusted to reflect the way we internally manage and monitor segment performance starting in fiscal year 2016 and include 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 DCG are our reportable operating segments. IOTG, NSG, ISecG, and PSG 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 separately disclose the results of these non-reportable operating segments. Our NTG operating segment does not meet the quantitative thresholds to qualify as a reportable segment and its results are included within the “all other” category.
Revenue for our reportable and non-reportable operating segments is primarily related to the following product lines:
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Client Computing Group. Includes platforms designed for notebooks (including Ultrabook™ devices), 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. Includes platforms designed for the enterprise, cloud, communications infrastructure, and technical computing segments.
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Internet of Things Group. Includes platforms designed for Internet of Things market segments, including retail, transportation, industrial, and buildings and home use, along with a broad range of other market segments.
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Non-Volatile Memory Solutions Group. Includes NAND flash memory products primarily used in solid-state drives.
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Intel Security Group. Includes security software products designed to deliver innovative solutions that secure computers, mobile devices, and networks around the world from the latest malware and emerging online threats.
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Programmable Solutions Group. Includes programmable semiconductors (primary field-programmable gate array) and related products for a broad range of market segments, including communications, networking and storage, industrial, military, and automotive.
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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:
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results of operations from our New Technology Group; |
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amounts included within restructuring and asset impairment 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 CODM;
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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.
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 2,
2016 |
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Mar 28,
2015 |
Net revenue: |
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Client Computing Group |
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Platform |
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$ |
7,188 |
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$ |
7,049 |
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Other |
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361 |
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371 |
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7,549 |
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7,420 |
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Data Center Group |
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Platform |
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3,718 |
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3,419 |
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Other |
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281 |
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262 |
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3,999 |
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3,681 |
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Internet of Things Group |
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Platform |
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571 |
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462 |
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Other |
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80 |
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71 |
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651 |
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533 |
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Non-Volatile Memory Solutions Group |
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557 |
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592 |
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Intel Security Group |
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537 |
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479 |
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Programmable Solutions Group |
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359 |
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— |
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All other |
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50 |
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76 |
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Total net revenue |
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$ |
13,702 |
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$ |
12,781 |
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Operating income (loss): |
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Client Computing Group |
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$ |
1,885 |
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$ |
1,411 |
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Data Center Group |
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1,764 |
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1,699 |
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Internet of Things Group |
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123 |
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87 |
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Non-Volatile Memory Solutions Group |
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(95 |
) |
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72 |
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Intel Security Group |
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85 |
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15 |
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Programmable Solutions Group |
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(200 |
) |
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— |
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All other |
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(994 |
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(669 |
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Total operating income |
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$ |
2,568 |
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$ |
2,615 |
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