Quarterly report pursuant to Section 13 or 15(d)

Operating Segments

v3.21.2
Operating Segments
9 Months Ended
Sep. 25, 2021
Segment Reporting [Abstract]  
Operating Segments
Note 2 : Operating Segments
We manage our business through the following operating segments:
CCG
DCG
IOTG
Mobileye
NSG
PSG
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 based on Intel architecture. Platform products are used in various form factors across our CCG, DCG, and IOTG operating segments. Our non-platform, or adjacent products, can be combined with platform products to form comprehensive platform solutions to meet customer needs.
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. 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 Nine Months Ended
(In Millions)
Sep 25, 2021 Sep 26, 2020 Sep 25, 2021 Sep 26, 2020
Net revenue:
Client Computing Group
Platform $ 8,954  $ 8,762  $ 27,968  $ 25,703 
Adjacent 710  1,085  2,410  3,415 
9,664  9,847  30,378  29,118 
Data Center Group
Platform 5,747  5,151  16,261  17,759 
Adjacent 749  754  2,254  2,256 
6,496  5,905  18,515  20,015 
Internet of Things
IOTG 1,042  677  2,940  2,230 
Mobileye 326  234  1,030  634 
1,368  911  3,970  2,864 
Non-Volatile Memory Solutions Group 1,105  1,153  3,310  4,150 
Programmable Solutions Group 478  411  1,450  1,431 
All other 81  106  873  311 
Total net revenue $ 19,192  $ 18,333  $ 58,496  $ 57,889 
Operating income (loss):
Client Computing Group $ 3,317  $ 3,554  $ 11,197  $ 10,621 
Data Center Group 2,057  1,903  5,271  8,494 
Internet of Things
IOTG 276  61  775  374 
Mobileye 105  47  361  131 
381  108  1,136  505 
Non-Volatile Memory Solutions Group 442  29  1,015  285 
Programmable Solutions Group 76  40  246  217 
All other (1,046) (575) (4,398) (2,328)
Total operating income $ 5,227  $ 5,059  $ 14,467  $ 17,794 
Disaggregated net revenue for each period was as follows:
Three Months Ended Nine Months Ended
(In Millions)
Sep 25, 2021 Sep 26, 2020 Sep 25, 2021 Sep 26, 2020
Platform revenue
CCG desktop platform $ 2,983  $ 2,483  $ 8,262  $ 7,691 
CCG notebook platform 5,953  6,275  19,655  17,976 
CCG other platform1
18  51  36 
DCG platform 5,747  5,151  16,261  17,759 
IOTG platform 948  595  2,679  2,008 
15,649  14,508  46,908  45,470 
Adjacent revenue2
3,543  3,825  11,588  12,419 
Total revenue $ 19,192  $ 18,333  $ 58,496  $ 57,889 
1    Includes our tablet and service provider revenue.
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, as well as revenue included in our "all other" category.