Quarterly report pursuant to Section 13 or 15(d)

Operating Segments Information

v3.8.0.1
Operating Segments Information
3 Months Ended
Mar. 31, 2018
Segment Reporting [Abstract]  
Operating Segments Information [Text Block]
NOTE 3: OPERATING SEGMENTS
We manage our business through the following operating segments:
Client Computing Group (CCG)
Data Center Group (DCG)
Internet of Things Group (IOTG)
Non-Volatile Memory Solutions Group (NSG)
Programmable Solutions Group (PSG)
All Other
We offer platform products that incorporate various components and technologies, including a microprocessor and chipset, a stand-alone System-on-Chip (SoC), or a multichip package. A platform product may be enhanced by additional hardware, software, and services offered by Intel. Platform products are used in various form factors across our CCG, DCG, and IOTG operating segments. We derive a substantial majority of our revenue from platform products, which are our principal products and considered as one class of product.
CCG and DCG are our reportable operating segments. IOTG, 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. 
The “all other” category includes revenue, expenses, and charges such as:
results of operations from non-reportable segments not otherwise presented, including Mobileye results;
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 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
(In Millions)
 
Mar 31,
2018
 
Apr 1,
2017
Net revenue:
 
 
 
 
Client Computing Group
 
 
 
 
Platform
 
$
7,615

 
$
7,397

Adjacent
 
605

 
579

 
 
8,220

 
7,976

Data Center Group
 
 
 
 
Platform
 
4,824

 
3,879

Adjacent
 
410

 
353

 
 
5,234

 
4,232

Internet of Things Group
 
 
 
 
Platform
 
719

 
632

Adjacent
 
121

 
89

 
 
840

 
721

Non-Volatile Memory Solutions Group
 
1,040

 
866

Programmable Solutions Group
 
498

 
425

All other
 
234

 
576

Total net revenue
 
$
16,066

 
$
14,796

 
 
 
 
 
Operating income (loss):
 
 
 
 
Client Computing Group
 
$
2,791

 
$
3,031

Data Center Group
 
2,602

 
1,487

Internet of Things Group
 
227

 
105

Non-Volatile Memory Solutions Group
 
(81
)
 
(129
)
Programmable Solutions Group
 
97

 
92

All other
 
(1,166
)
 
(954
)
Total operating income
 
$
4,470

 
$
3,632


Disaggregated net revenue for each period was as follows:
 
 
Three Months Ended
(In Millions)
 
Mar 31,
2018
 
Apr 1,
2017
Platform revenue
 
 
 
 
Desktop platform
 
$
2,907

 
$
2,855

Notebook platform
 
4,689

 
4,498

DCG platform
 
4,824

 
3,879

Other platform1
 
738

 
676

 
 
13,158

 
11,908

 
 
 
 
 
Adjacent revenue2
 
2,908

 
2,354

ISecG divested business
 

 
534

Total revenue
 
$
16,066

 
$
14,796


1 
Includes our tablet, service provider, and IOTG platform revenue.
2 
Includes all of our non-platform products for CCG, DCG, and IOTG like modem, ethernet, and silicon photonic, as well as NSG, PSG, and Mobileye products.