Quarterly report pursuant to Section 13 or 15(d)

Operating Segments

v3.21.1
Operating Segments
 3 Months Ended
Mar. 27, 2021
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 product class. 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. In 2021, our DCG operating segment includes the results of our Intel® OptaneTM memory business, and our NSG operating segment is composed of our NAND memory business. Refer to "Note 8: Acquisitions and Divestitures" within Notes to Consolidated Condensed Financial Statements for further information on the pending divestiture of our NAND memory business.
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
(In Millions)
 Mar 27, 2021 Mar 28, 2020
Net revenue:
Data Center Group
Platform $ 4,811  $ 6,427 
Adjacent 753  566 
5,564  6,993 
Internet of Things
IOTG 914  883 
Mobileye 377  254 
1,291  1,137 
Non-Volatile Memory Solutions Group 1,107  1,338 
Programmable Solutions Group 486  519 
Client Computing Group
Platform 9,617  8,712 
Adjacent 988  1,063 
10,605  9,775 
All other 620  66 
Total net revenue $ 19,673  $ 19,828 
Operating income (loss):
Data Center Group $ 1,273  $ 3,492 
Internet of Things
IOTG 212  243 
Mobileye 147  88 
359  331 
Non-Volatile Memory Solutions Group 171  (66)
Programmable Solutions Group 88  97 
Client Computing Group 4,120  4,225 
All other (2,317) (1,041)
Total operating income $ 3,694  $ 7,038 
Disaggregated net revenue for each period was as follows:
Three Months Ended
(In Millions)
 Mar 27, 2021 Mar 28, 2020
Platform revenue
DCG platform $ 4,811  $ 6,427 
IOTG platform 840  795 
CCG desktop platform 2,644  2,840 
CCG notebook platform 6,959  5,857 
CCG other platform1
14  15 
15,268  15,934 
Adjacent revenue2
4,405  3,894 
Total revenue $ 19,673  $ 19,828 
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, as well as revenue included in our "all other" category.