| Operating Segments [Text Block] |
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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 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, Mobileye, 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. Our Internet of Things portfolio, presented as Internet of Things, is comprised of IOTG and Mobileye 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; |
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historical results of operations from divested businesses;
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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 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:
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Three Months Ended |
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Nine Months Ended |
(In Millions) |
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Sep 28,
2019 |
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Sep 29,
2018 |
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Sep 28,
2019 |
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Sep 29,
2018 |
Net revenue: |
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Client Computing Group |
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Platform |
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$ |
8,379 |
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$ |
9,023 |
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$ |
24,128 |
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$ |
24,703 |
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Adjacent |
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1,330 |
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1,211 |
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3,008 |
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2,479 |
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9,709 |
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10,234 |
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27,136 |
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27,182 |
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Data Center Group |
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Platform |
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5,819 |
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5,637 |
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14,854 |
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15,561 |
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Adjacent |
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564 |
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502 |
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1,414 |
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1,361 |
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6,383 |
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6,139 |
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16,268 |
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16,922 |
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Internet of Things |
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IOTG |
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1,005 |
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919 |
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2,901 |
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2,639 |
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Mobileye |
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229 |
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191 |
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639 |
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515 |
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1,234 |
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1,110 |
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3,540 |
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3,154 |
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Non-Volatile Memory Solutions Group |
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1,290 |
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1,081 |
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3,145 |
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3,200 |
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Programmable Solutions Group |
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507 |
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496 |
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1,482 |
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1,511 |
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All other |
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67 |
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103 |
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185 |
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222 |
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Total net revenue |
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$ |
19,190 |
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$ |
19,163 |
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$ |
51,756 |
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$ |
52,191 |
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Operating income (loss): |
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Client Computing Group |
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$ |
4,305 |
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$ |
4,532 |
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$ |
11,114 |
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$ |
10,557 |
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Data Center Group |
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3,115 |
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3,082 |
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6,756 |
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8,421 |
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Internet of Things |
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IOTG |
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309 |
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321 |
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854 |
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791 |
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Mobileye |
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67 |
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52 |
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188 |
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106 |
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376 |
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373 |
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1,042 |
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897 |
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Non-Volatile Memory Solutions Group |
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(499 |
) |
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160 |
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(1,080 |
) |
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14 |
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Programmable Solutions Group |
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92 |
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106 |
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233 |
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304 |
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All other |
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(942 |
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(904 |
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(2,827 |
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(3,101 |
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Total operating income |
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$ |
6,447 |
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$ |
7,349 |
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$ |
15,238 |
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$ |
17,092 |
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Disaggregated net revenue for each period was as follows:
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Three Months Ended |
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Nine Months Ended |
(In Millions) |
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Sep 28,
2019 |
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Sep 29,
2018 |
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Sep 28,
2019 |
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Sep 29,
2018 |
Platform revenue |
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Desktop platform |
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$ |
2,968 |
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$ |
3,225 |
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$ |
8,621 |
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$ |
9,087 |
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Notebook platform |
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5,393 |
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5,774 |
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15,456 |
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15,549 |
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DCG platform |
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5,819 |
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5,637 |
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14,854 |
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15,561 |
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IOTG platform |
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923 |
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855 |
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2,639 |
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2,319 |
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Other platform1
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18 |
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24 |
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51 |
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67 |
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15,121 |
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15,515 |
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41,621 |
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42,583 |
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Adjacent revenue2
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4,069 |
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3,648 |
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10,135 |
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9,608 |
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Total revenue |
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$ |
19,190 |
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$ |
19,163 |
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$ |
51,756 |
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$ |
52,191 |
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1 |
Includes our tablet and service provider revenue. |
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2 |
Includes all of our non-platform products for CCG, DCG, and IOTG such as modem, Ethernet, and silicon photonics, as well as Mobileye, NSG, and PSG products. |
Planned divestiture of smartphone modem business
On July 25, 2019, we signed a definitive agreement to sell the majority of our smartphone modem business. We will continue to meet current customer commitments for our existing 4G smartphone modem product line. We expect to close the transaction, which will include certain employees, intellectual property, equipment and leases, in the fourth quarter of 2019. $235 million net assets of the modem business are classified as held for sale. We expect to record a gain on divestiture of approximately $500 million, net of tax.
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