Quarterly report pursuant to Section 13 or 15(d)

Operating Segments

v3.20.2
Operating Segments
 6 Months Ended
Jun. 27, 2020
Segment Reporting [Abstract]  
Operating Segments [Text Block]
NOTE 2 : OPERATING SEGMENTS
We manage our business through the following operating segments:
•DCG
•IOTG
•Mobileye
•NSG
•PSG
•CCG
We derive a substantial majority of our revenue from platform products, which are our principal products and considered as one class of product. We offer platform products that incorporate various components and technologies, including a microprocessor and chipset, a stand-alone SoC, or a multichip package. Platform products are used in various form factors across our DCG, IOTG, and CCG operating segments. Our non-platform, or adjacent products, can be combined with platform products to form comprehensive platform solutions to meet customer needs.
DCG and CCG 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.
We have an “all other” category that includes revenue, expenses, and charges such as:
•results of operations from non-reportable segments not otherwise presented;
•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 CODM, who is our 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. 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 Six Months Ended
(In Millions)
 Jun 27, 2020 Jun 29, 2019 Jun 27, 2020 Jun 29, 2019
Net revenue:
Data Center Group
Platform $ 6,181    $ 4,553    $ 12,608    $ 9,035   
Adjacent 936    430    1,502    850   
7,117    4,983    14,110    9,885   
Internet of Things
IOTG 670    986    1,553    1,896   
Mobileye 146    201    400    410   
816    1,187    1,953    2,306   
Non-Volatile Memory Solutions Group 1,659    940    2,997    1,855   
Programmable Solutions Group 501    489    1,020    975   
Client Computing Group
Platform 8,229    7,925    16,941    15,749   
Adjacent 1,267    916    2,330    1,678   
9,496    8,841    19,271    17,427   
All other 139    65    205    118   
Total net revenue $ 19,728    $ 16,505    $ 39,556    $ 32,566   
Operating income (loss):
Data Center Group $ 3,099    $ 1,800    6,591    $ 3,641   
Internet of Things
IOTG 70    294    313    545   
Mobileye (4)   53    84    121   
66    347    397    666   
Non-Volatile Memory Solutions Group 322    (284)   256    (581)  
Programmable Solutions Group 80    52    177    141   
Client Computing Group 2,842    3,737    7,067    6,809   
All other (712)   (1,035)   (1,753)   (1,885)  
Total operating income $ 5,697    $ 4,617    $ 12,735    $ 8,791   
Disaggregated net revenue for each period was as follows:
Three Months Ended Six Months Ended
(In Millions)
 Jun 27, 2020 Jun 29, 2019 Jun 27, 2020 Jun 29, 2019
Platform revenue
DCG platform $ 6,181    $ 4,553    $ 12,608    $ 9,035   
IOTG platform 619    891    1,414    1,716   
CCG desktop platform 2,368    2,767    5,208    5,653   
CCG notebook platform 5,844    5,136    11,701    10,063   
CCG other platform1
16    22    31    33   
15,028    13,369    30,962    26,500   
Adjacent revenue2
4,700    3,136    8,594    6,066   
Total revenue $ 19,728    $ 16,505    $ 39,556    $ 32,566   
1 Includes our tablet and service provider revenue.
2 Includes all of our non-platform products for DCG, IOTG, and CCG such as modem, Ethernet, and silicon photonics, as well as Mobileye, NSG, and PSG products.