| Operating Segments Information [Text Block] |
NOTE 3: OPERATING SEGMENTS
We manage our business through the following operating segments:
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Client Computing Group (CCG) |
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Data Center Group (DCG) |
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Internet of Things Group (IOTG) |
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Non-Volatile Memory Solutions Group (NSG) |
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Programmable Solutions Group (PSG) |
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:
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results of operations from non-reportable segments not otherwise presented, including Mobileye results; |
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historical results of operations from divested businesses, including Intel Security Group (ISecG) results;
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results of operations of start-up businesses that support our initiatives, including our foundry business;
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amounts included within restructuring and other charges;
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a portion of employee benefits, compensation, and other expenses not allocated to the operating segments; and
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acquisition-related costs, including amortization and any impairment of acquisition-related intangibles and goodwill. |
The Chief Operating Decision Maker (CODM), which is our interim Chief Executive Officer, 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 |
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Six Months Ended |
(In Millions) |
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Jun 30,
2018 |
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Jul 1,
2017 |
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Jun 30,
2018 |
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Jul 1,
2017 |
Net revenue: |
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Client Computing Group |
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Platform |
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$ |
8,065 |
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$ |
7,634 |
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$ |
15,680 |
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$ |
15,031 |
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Adjacent |
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663 |
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579 |
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1,268 |
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1,158 |
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8,728 |
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8,213 |
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16,948 |
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16,189 |
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Data Center Group |
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Platform |
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5,100 |
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4,026 |
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9,924 |
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7,905 |
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Adjacent |
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449 |
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346 |
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859 |
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699 |
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5,549 |
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4,372 |
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10,783 |
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8,604 |
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Internet of Things Group |
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Platform |
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745 |
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614 |
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1,464 |
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1,246 |
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Adjacent |
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135 |
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106 |
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256 |
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195 |
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880 |
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720 |
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1,720 |
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1,441 |
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Non-Volatile Memory Solutions Group |
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1,079 |
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874 |
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2,119 |
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1,740 |
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Programmable Solutions Group |
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517 |
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440 |
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1,015 |
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865 |
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All other |
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209 |
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144 |
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443 |
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720 |
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Total net revenue |
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$ |
16,962 |
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$ |
14,763 |
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$ |
33,028 |
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$ |
29,559 |
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Operating income (loss): |
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Client Computing Group |
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$ |
3,234 |
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$ |
3,025 |
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$ |
6,025 |
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$ |
6,056 |
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Data Center Group |
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2,737 |
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1,661 |
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5,339 |
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3,148 |
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Internet of Things Group |
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243 |
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139 |
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470 |
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244 |
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Non-Volatile Memory Solutions Group |
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(65 |
) |
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(110 |
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(146 |
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(239 |
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Programmable Solutions Group |
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101 |
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97 |
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198 |
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189 |
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All other |
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(977 |
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(970 |
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(2,143 |
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(1,924 |
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Total operating income |
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$ |
5,273 |
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$ |
3,842 |
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$ |
9,743 |
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$ |
7,474 |
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Disaggregated net revenue for each period was as follows:
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Three Months Ended |
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Six Months Ended |
(In Millions) |
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Jun 30,
2018 |
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Jul 1,
2017 |
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Jun 30,
2018 |
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Jul 1,
2017 |
Platform revenue |
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Desktop platform |
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$ |
2,954 |
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$ |
2,776 |
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$ |
5,861 |
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$ |
5,631 |
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Notebook platform |
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5,086 |
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4,816 |
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9,775 |
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9,314 |
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DCG platform |
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5,100 |
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4,026 |
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9,924 |
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7,905 |
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Other platform1
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770 |
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656 |
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1,508 |
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1,332 |
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13,910 |
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12,274 |
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27,068 |
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24,182 |
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— |
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Adjacent revenue2
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3,052 |
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2,489 |
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5,960 |
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4,843 |
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ISecG divested business |
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— |
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— |
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— |
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534 |
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Total revenue |
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$ |
16,962 |
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$ |
14,763 |
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$ |
33,028 |
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$ |
29,559 |
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Includes our tablet, service provider, and IOTG platform revenue. |
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2 |
Includes all of our non-platform products for CCG, DCG, and IOTG like modem, ethernet, and silicon photonics, as well as NSG, PSG, and Mobileye products. |
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