Quarterly report pursuant to Section 13 or 15(d)

Operating Segments Information

v3.8.0.1
Operating Segments Information
9 Months Ended
Sep. 30, 2017
Segment Reporting [Abstract]  
Operating Segments Information [Text Block]
Note 4: 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.
In the third quarter of 2017, we completed our tender offer for the outstanding ordinary shares of Mobileye B.V. (Mobileye), formerly known as Mobileye N.V. In the second quarter of 2017, we completed the planned divestiture of Intel Security Group (ISecG). The results are reported within the "all other" category. See "Note 10: Acquisitions and Divestitures" for additional information.
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;
historical results of operations of divested businesses;
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 Chief Operating Decision Maker (CODM), which is our Chief Executive Officer (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. 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 30,
2017
 
Oct 1,
2016
 
Sep 30,
2017
 
Oct 1,
2016
Net revenue:
 
 
 
 
 
 
 
 
Client Computing Group
 
 
 
 
 
 
 
 
Platform
 
$
8,132

 
$
8,258

 
$
23,163

 
$
22,395

Other
 
728

 
634

 
1,886

 
1,384

 
 
8,860

 
8,892

 
25,049

 
23,779

Data Center Group
 
 
 
 
 
 
 
 
Platform
 
4,439

 
4,164

 
12,344

 
11,589

Other
 
439

 
378

 
1,138

 
979

 
 
4,878

 
4,542

 
13,482

 
12,568

Internet of Things Group
 
 
 
 
 
 
 
 
Platform
 
680

 
605

 
1,926

 
1,673

Other
 
169

 
84

 
364

 
239

 
 
849

 
689

 
2,290

 
1,912

Non-Volatile Memory Solutions Group
 
891

 
649

 
2,631

 
1,760

Programmable Solutions Group
 
469

 
425

 
1,334

 
1,249

All other
 
202

 
581

 
922

 
1,745

Total net revenue
 
$
16,149

 
$
15,778

 
$
45,708

 
$
43,013

Operating income (loss):
 
 
 
 
 
 
 
 
Client Computing Group
 
$
3,600

 
$
3,327

 
$
9,656

 
$
7,123

Data Center Group
 
2,255

 
2,110

 
5,403

 
5,639

Internet of Things Group
 
146

 
191

 
390

 
403

Non-Volatile Memory Solutions Group
 
(52
)
 
(134
)
 
(291
)
 
(453
)
Programmable Solutions Group
 
113

 
78

 
302

 
(184
)
All other
 
(947
)
 
(1,110
)
 
(2,919
)
 
(4,180
)
Total operating income
 
$
5,115

 
$
4,462

 
$
12,541

 
$
8,348